The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia
DOI:10.54443/sj.v3i5.431Published: 31 December 2024Pages: 21-35 (Vol. 3, No. 5)Views: 14
Authors & Researchers
Y
Yuniar Prastika, FridaDepartment of Magister Management, Universitas Negeri Jakarta, Indonesia1
W
Warokka, AriDepartment of Magister Management, Universitas Negeri Jakarta, Indonesia2
N
Nazir Ahmad, GatotDepartment of Magister Management, Universitas Negeri Jakarta, Indonesia3
Abstract
CEO Overconfidence plays an important role in determining company performance, especially in the Emerging Market Asia period 2010-2019 in the manufacturing, energy, health, and technology sectors. This study uses secondary data taken from Refinitiv Eikon Financial Analysis. This study aims to determine the effect of managerial overconfidence on company performance as proxied by Return on Asset (ROA), Tobin's Q, and Debt to Equity Ratio (DER). This study uses the Principal Component Analysis (PCA) technique and panel data regression. The results of the study indicate that managerial overconfidence has a significant effect on ROA. However, managerial overconfidence does not have a significant effect on Tobin's Q and DER. This explains that managerial overconfidence can directly affect company performance.
Frida, Y.P., & Ari, W., & Gatot, N.A. (2024). The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia. International Journal of Social Science, Education, Communication and Economics, 3(5), 21-35. https://doi.org/10.54443/sj.v3i5.431
Frida, Y.P., & Ari, W., & Gatot, N.A. (2024). The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia. International Journal of Social Science, Education, Communication and Economics, 3(5), 21-35. https://doi.org/10.54443/sj.v3i5.431
Yuniar Prastika, Frida, and Warokka, Ari, and Nazir Ahmad, Gatot. "The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia." International Journal of Social Science, Education, Communication and Economics, vol. 3, no. 5, 2024, pp. 21-35.
Frida, Y.P., & Ari, W., & Gatot, N.A., 2024. The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia. International Journal of Social Science, Education, Communication and Economics, 3(5), p.21-35.
Yuniar Prastika, Frida, and Warokka, Ari, and Nazir Ahmad, Gatot. "The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia." International Journal of Social Science, Education, Communication and Economics 3, no. 5 (2024): 21-35.
@article{yuniar2024the, author = {Yuniar Prastika, Frida and Warokka, Ari and Nazir Ahmad, Gatot}, title = {The Effect of Managerial Overconfidence on Firm Performance in Emerging Market Asia}, journal = {International Journal of Social Science, Education, Communication and Economics}, year = {2024}, volume = {3}, number = {5}, pages = {21-35}, doi = {10.54443/sj.v3i5.431}, url = {https://pioaj.com/index.php/article/10922} }
