University of Surrey

Test tubes in the lab Research in the ATI Dance Research

Managerial Overconfidence in High and Low Valuation Markets and Gains to Acquisitions

Petmezas, D (2010) Managerial Overconfidence in High and Low Valuation Markets and Gains to Acquisitions International Review of Financial Analysis, 19 (5). pp. 368-378.


Download (830kB)


In this paper we empirically investigate bidders' performance managed by overconfident and non-overconfident managers in high and low market valuation periods. Using a sample of UK acquisitions in the period 1990–2005, we provide evidence that the interaction between market valuation and different behavioral traits of managers is a determinant of bidders' returns. In contrast to overconfident managers, non-overconfident managers conduct value-creative acquisition deals in all valuation periods. In addition, when we control for acquirer and deal characteristics, we find that bidders with non-overconfident managers gain the most in high valuation periods, while firms are better off without overconfident managers in any type of market conditions.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
Petmezas, D
Date : 2010
DOI : 10.1016/j.irfa.2010.06.003
Additional Information : Copyright 2010 Elsevier. All rights reserved. This is the author's version. A definitive version was subseqently published in International Review of Financial Analysis, 19(5)2010, DOI:10.1016/j.irfa.2010.06.003
Depositing User : Symplectic Elements
Date Deposited : 01 Mar 2012 13:29
Last Modified : 31 Oct 2017 14:22

Actions (login required)

View Item View Item


Downloads per month over past year

Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800