Betzer, André; van den Bongard, Inga; Schweder, Felix; … - In: Review of Managerial Science 17 (2022) 7, pp. 2297-2324
We use a unique panel data set of private German firms to analyze the relation between managerial overconfidence and investment policy in small and medium-sized firms. We find that overconfident managers invest more, and that this relation is driven by expansion investments. When considering the...