Explain how to test for the effect of managerial overconfidence on the sensitivity of a firms investments

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Explain how to test for the effect of managerial overconfidence on the sensitivity of a firm’s investments to cash flow and discuss the likely result.

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Behavioral Finance

ISBN: 9780190868741

1st Edition

Authors: H. Kent Baker, Greg Filbeck, John R. Nofsinger

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Question Posted: Feb 23, 2024 04:00 AM

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Explain how to test for the effect of managerial overconfidence on the sensitivity of a firms investments

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In theory a firms investment should be driven exclusively by the profitability of its opportuniti...View the full answer

Behavioral Finance

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