英文摘要 |
This study explores the influence of CEO overconfidence on stock repurchasedecision. Three criteria are employed to observe CEO overconfidence: late optionexercise, net buying in their company stock, media news and overinvestment rate.The empirical finding of this study shows that the relation between overconfidentCEO and the frequency of announcement of stock repurchase is significantlypositive. More overconfident CEOs make more open-market stock repurchases andusually overvalue the company. Further, we find that the performance of stockrepurchase program made by rational CEO is better than made by overconfidentCEO and the difference of stock performance is getting larger after stockrepurchases. We also find that the firm with financial constrains will reduce CEOoverconfidence and thus reduce the frequency of stock repurchases. |