RESEARCH ARTICLE
Objective or biased? CEO overconfidence and journalists' coverage
Rong Gong,
Corresponding Author
Rong Gong
Shanghai University of Finance and Economics, Shanghai, China
Correspondence
Rong Gong, School of Accountancy, Shanghai University of Finance and Economics, Yangpu District, Shanghai, China.
Email: [email protected]
Search for more papers by this authorRong Gong,
Corresponding Author
Rong Gong
Shanghai University of Finance and Economics, Shanghai, China
Correspondence
Rong Gong, School of Accountancy, Shanghai University of Finance and Economics, Yangpu District, Shanghai, China.
Email: [email protected]
Search for more papers by this authorFirst published: 22 July 2024
Abstract
This study explores whether journalists report more positively or negatively on acquisitions by chief executive officers (CEOs) with greater overconfidence than those with less overconfident CEOs. The results show that journalists report acquisition events conducted by firms with overconfident CEOs more negatively than those without. Meanwhile, journalists' negativity in reporting acquisitions by overconfident CEOs is mitigated during periods of high market uncertainty. This result suggests that journalists are not biased upward because of the positive prospects presented by overconfident CEOs but instead act as information intermediaries to inform readers about the overoptimistic view of overconfident CEOs.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available from Shanghai University of Finance and Economics. Restrictions apply to the availability of these data, which were used under license for this study.
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