Date of Award
Doctor of Philosophy (PhD)
This dissertation investigates how CEO overconfidence is associated with the disclosure of proprietary information. I use characteristics of research and development activities (R&D) and capital investments (CAPX) to examine within-firm variation in proprietary disclosure costs. After verifying that narrative disclosures about R&D have higher levels of proprietary disclosure costs than those about CAPX, I predict that overconfident executives underestimate the costs of disclosing proprietary information, leading to higher proprietary disclosure. Consistent with this prediction, I find that overconfident CEOs disclose significantly more about R&D, but not more about CAPX. Further, these CEOs increase the disclosure of distinctly proprietary R&D information (i.e., about current and future investments) significantly more than less proprietary R&D information (i.e., about historical investments). The results suggest the findings are not due to endogenous firm-CEO matching or overconfident CEOs selecting systematically different investment levels.
Rawson, Caleb, "Who Let the Secrets Out? Overconfidence and the Disclosure of Proprietary Information." (2020). Business Administration Graduate Theses & Dissertations. 6.
Available for download on Sunday, October 31, 2021