This paper builds upon the idea that CEO overconfidence is endogenously generated in the corporate context. We provide evidence that managerial overconfidence is enhanced by contextual circumstances such as: past experience of the CEO, power allocation, quality of corporate governance and...

We develop an integrated set of propositions describing the relationships among CEO characteristics, the perceived trustworthiness of the CEO, and the board of directors’ decisions concerning the governance structure of the firm. In particular, we propose that CEO education, tenure,...