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Research Round Up: Overconfident CEOs, How to Boost In-store Sales and the Role of Nerves in Negotiation
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Research Round Up: Overconfident CEOs, How to Boost In-store Sales and the Role of Nerves in Negotiation

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Are overconfident CEOs also more likely to be overly optimistic when issuing earnings forecasts? Does in-store marketing — including a product’s location and visibility on store shelves– make a difference? How does anxiety cripple efforts to negotiate a successful business deal? Wharton professors Holly Yang , Wesley Hutchinson and Eric Bradlow , and Maurice Schweitzer , respectively, examined these issues — and what they mean for business — in recent research papers. For Earnings Forecasts, How Much Confidence Is Too Much? Are CEOs who are described as “overconfident” more likely to voluntarily issue earnings forecasts, and are these forecasts more likely to be overly optimistic? A research paper by Wharton accounting professor Holly Yang and University of Iowa professor Paul Hribar suggests that the answer is yes — a finding that has implications for analysts, investors, regulators and other users of financial reports.…

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