Managerial optimism and corporate investment: Some empirical evidence from Taiwan
Journal
Pacific Basin Finance Journal
Journal Volume
13
Journal Issue
5
Pages
523-546
Date Issued
2005
Author(s)
Abstract
In this paper we examine the relation between managerial optimism and corporate investment decisions. Analyzing a sample of listed companies in Taiwan, we propose a measure of managerial optimism from management earnings forecasts, and find that in more financing constrained firms, optimistic managers exhibit higher investment-cash flow sensitivity than do non-optimistic managers. ? 2005 Elsevier B.V. All rights reserved.
Subjects
Financing constraints
Investment
Managerial optimism
SDGs
Type
journal article