Purpose – The purpose of this paper is to model the announcement returns of merging firms based on managerial overconfidence about merger synergy. Design/methodology/approach – The paper applies continuous‐time real options techniques and game theoretic concepts. Managerial overconfidence...

Purpose – The purpose of this paper is to model the announcement returns of merging firms based on managerial overconfidence about merger synergy. Design/methodology/approach – The paper applies continuous-time real options techniques and game theoretic concepts. Managerial overconfidence...

This paper theorizes and tests how chief executive officer (CEO)'s value of self-enhancement and self-transcendence, influence corporate innovation activities. We hypothesize that CEOs' values of self-enhancement — focusing on the leader's own benefit — would relate negatively to corporate...