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The Informational Role Of Overconfident Ceos, Chi Shen Wei, Lei Zhang Aug 2018

The Informational Role Of Overconfident Ceos, Chi Shen Wei, Lei Zhang

Research Collection Lee Kong Chian School Of Business

We study how overconfident CEOs communicate with the market and whether this has implications on the firm’s information environment. Textual analysis reveals that overconfident CEOs communicate using less negative tone in their 10K/Q filings. Our evidence suggests that overconfident CEOs provide market participants with more value-relevant information as sell-side analysts make more accurate forecasts of their firm’s future earnings. Consistent with a reduction in asymmetric information, implied cost of equity capital is lower. However, not all investors benefit as the information advantage of short sellers disappears in the stocks of overconfident CEOs.


Share Retention, Underwriter Reputation, And Initial Public Offering Underpricing, Marcia Yvonne Reid-Grant Jan 2018

Share Retention, Underwriter Reputation, And Initial Public Offering Underpricing, Marcia Yvonne Reid-Grant

Walden Dissertations and Doctoral Studies

Initial public offering (IPO) underpricing is a costly practice that decreases the IPO proceeds accruing to the issuing firms and can derail a firm's growth objectives. The purpose of this correlational study was to determine the relationship between share retention, underwriter reputation, and IPO underpricing among a population of IPOs issued in Jamaica. The efficient market hypothesis served as the theoretical framework for this study. Archived data for 52 IPOs issued in Jamaica from 1986 to 2018 were collected and Spearman's correlation matrix and heteroscedasticity-consistent standard errors regression analysis were applied. The outcomes of this study indicated no significant relationship …