Are Overconfident Science Site CEOs Born Or Made?

Sometimes you just get lucky but overconfident CEOs never talk about good luck when things go well, just bad luck when there are problems, according to a paper in the current issue of Management Science. Whether to engage in mergers and acquisitions is one of the most important decisions top managers make, the authors write. While many of the factors influencing these decisions may be based on objective financial metrics, there is increasing evidence that behavioral biases play an important role in managerial decision making. Professors Matthew T. Billett and Yiming Qian of the University of Iowa based their results on a sample of public acquisitions between 1985 and 2002. Over this period, U.S. public companies acquired $3.7 trillion worth of other U.S. public companies. read more

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