Behavioral and Social Corporate Finance (2024)

  • Adam, T. R., Burg, V., Scheinert, T., & Streitz, D. (2018). Managerial biases and debt contract design: The case of syndicated loans (Working Paper).

  • Adam, T. R., Fernando, C. S., & Golubeva, E. (2015). Managerial overconfidence and corporate risk management. Journal of Banking and Finance, 60(1), 195–208.

  • Adebambo, B. N., & Yan, X. S. (2018). Investor overconfidence, firm valuation, and corporate decisions. Management Science, 64(11), 5349–5369.

  • Adhikari, B. K., & Agrawal, A. (2018). Peer influence on payout policies. Journal of Corporate Finance, 48, 615–637.

  • Aggarwal, R., Faccio, M., Guedhami, O., & Kwok, C. C. (2016). Culture and finance: An introduction. Journal of Corporate Finance, 41, 466–474.

  • Ahern, K. R., Daminelli, D., & Fracassi, C. (2015). Lost in translation? The effect of cultural values on mergers around the world. Journal of Financial Economics, 117(1), 165–189.

  • Ahmed, A. S., & Duellman, S. (2013). Managerial overconfidence and accounting conservatism. Journal of Accounting Research, 51(1), 1–30.

  • Aktas, N., De Bodt, E., Bollaert, H., & Roll, R. (2016). CEO narcissism and the takeover process: From private initiation to deal completion. Journal of Financial and Quantitative Analysis, 51(1), 113–137.

  • Aktas, N., de Bodt, E., & Roll, R. (2009). Learning, hubris and corporate serial acquisitions. Journal of Corporate Finance, 15(5), 543–561.

  • Aktas, N., de Bodt, E., & Roll, R. (2011). Serial acquirer bidding: An empirical test of the learning hypothesis. Journal of Corporate Finance, 17(1), 18–32.

  • Ali, U., & Hirshleifer, D. A. (2019). Shared analyst coverage: Unifying momentum spillover effects. Journal of Financial Economics.

  • Allport, G. W. (1954). The historical background of modern social psychology. In G. Lindzey (Ed.), Theoretical models and personality (Vol. 1, pp. 3–56). Cambridge, MA: Addison-Wesley.

  • Alti, A. (2006). How persistent is the impact of market timing on capital structure? Journal of Finance, 61(4), 1681–1710.

  • Alti, A., & Sulaeman, J. (2012). When do high stock returns trigger equity issues? Journal of Financial Economics, 103(1), 61–87.

  • Alzahrani, M., & Rao, R. P. (2014). Managerial behavior and the link between stock mispricing and corporate investments: Evidence from market-to-book ratio decomposition. Financial Review, 49(1), 89–116.

  • American Psychatric Association. (1994). Diagnostic and statistical manual of mental disorders. Washington, DC: American Psychiatric Association.

  • Ammann, M., Horsch, P., & Oesch, D. (2016). Competing with superstars. Management Science, 62(10), 2842–2858.

  • Ammann, M., Kind, A., & Seiz, R. (2010). What drives the performance of convertible-bond funds? Journal of Banking and Finance, 34(11), 2600–2613.

  • Anderson, C. W., Huang, J., & Torna, G. (2017). Can investors anticipate post-IPO mergers and acquisitions? Journal of Corporate Finance, 45, 496–521.

  • Ang, J., & Cheng, Y. (2006). Direct evidence on the market-driven acquisition theory. Journal of Financial Research, 29(2), 199–216.

  • Audi, R., Loughran, T., & McDonald, B. (2016). Trust, but verify: MD&A language and the role of trust in corporate culture. Journal of Business Ethics, 139(3), 551–561.

  • Autore, D. M., Kumar, R., & Shome, D. K. (2008). The revival of shelf-registered corporate equity offerings. Journal of Corporate Finance, 14(1), 32–50.

  • Axelson, U., Jenkinson, T., Strömberg, P., & Weisbach, M. S. (2013). Borrow cheap, buy high? The determinants of leverage and pricing in buyouts. Journal of Finance, 68(6), 2223–2267.

  • Bae, K.-H., & Wang, W. (2012). What’s in a “China” name? A test of investor attention hypothesis. Financial Management, 41(2), 429–455.

  • Baker, H. K., & Gallagher, P. L. (1980). Management’s view of stock splits. Financial Management, 9(2), 73–77.

  • Baker, M. (2009). Capital market-driven corporate finance. Annual Review of Financial Economics, 1, 181–205.

  • Baker, M., Coval, J., & Stein, J. C. (2007). Corporate financing decisions when investors take the path of least resistance. Journal of Financial Economics, 84(2), 266–298.

  • Baker, M., Foley, C. F., & Wurgler, J. (2009). Multinationals as arbitrageurs: The effect of stock market valuations on foreign direct investment. Review of Financial Studies, 22(1), 337–369.

  • Baker, M., Greenwood, R., & Wurgler, J. (2003). The maturity of debt issues and predictable variation in bond returns. Journal of Financial Economics, 70(2), 261–291.

  • Baker, M., Greenwood, R., & Wurgler, J. (2009). Catering through nominal share prices. Journal of Finance, 64(6), 2559–2590.

  • Baker, M., Pan, X., & Wurgler, J. (2012). The effect of reference point prices on mergers and acquisitions. Journal of Financial Economics, 106(1), 49–71.

  • Baker, M., Ruback, R. S., & Wurgler, J. (2007). Behavioral corporate finance. In B. E. Eckbo (Ed.), Handbook of empirical corporate finance (Vol. 1, pp. 145–186). New York, NY: Elsevier.

  • Baker, M., Stein, J. C., & Wurgler, J. (2003). When does the market matter? Stock prices and the investment of equity-dependent firms. Quarterly Journal of Economics, 118(3), 969–1005.

  • Baker, M., & Wurgler, J. (2000). The equity share in new issues and aggregate stock returns. Journal of Finance, 55(5), 2219–2257.

  • Baker, M., & Wurgler, J. (2002). Market timing and capital structure. Journal of Finance, 57(1), 1–32.

  • Baker, M., & Wurgler, J. (2004a). Appearing and disappearing dividends: The link to catering incentives. Journal of Financial Economics, 73(2), 271–288.

  • Baker, M., & Wurgler, J. (2004b). A catering theory of dividends. Journal of Finance, 59(3), 1125–1165.

  • Baker, M., & Wurgler, J. (2013). Behavioral corporate finance: An updated survey. In G. M. Constantinides, M. Harris, & R. M. Stulz (Eds.), Handbook of the economics of finance (Vol. 2, pp. 352–407). New York, NY: Elsevier.

  • Baker, M., & Xuan, Y. (2016). Under new management: equity issues and the attribution of past returns. Journal of Financial Economics, 121(1), 66–78.

  • Banerjee, S., Humphery-Jenner, M., & Nanda, V. (2015). Restraining overconfident CEOs through improved governance: Evidence from the Sarbanes-Oxley Act. Review of Financial Studies, 28(10), 2812–2858.

  • Banerjee, S., Humphery-Jenner, M., & Nanda, V. K. (2018). Does CEO bias escalate repurchase activity? Journal of Banking and Finance, 93, 105–126.

  • Barberis, N., & Thaler, R. H. (2003). A survey of behavioral finance. In G. M. Constantinides, M. Harris, & R. Stulz (Eds.), Handbook of the economics of finance (pp. 1054–1116). New York, NY: Elsevier.

  • Bargeron, L., Lehn, K., & Smith, J. (2015). Employee-management trust and M&A activity. Journal of Corporate Finance, 35, 389–406.

  • Beber, A., & Fabbri, D. (2012). Who times the foreign exchange market? Corporate speculation and CEO characteristics. Journal of Corporate Finance, 18(5), 1065–1087.

  • Becker, B., Ivković, Z., & Weisbenner, S. (2011). Local dividend clienteles. Journal of Finance, 66(2), 655–683.

  • Becker, G. S. (1974). A theory of social interactions. Journal of Political Economy, 82(6), 1063–1093.

  • Ben Mohamed, E., Fairchild, R., & Bouri, A. (2014). Investment cash flow sensitivity under managerial optimism: New evidence from NYSE panel data firms. Journal of Economics, Finance and Administrative Science, 19(36), 11–18.

  • Ben-David, I., Graham, J. R., & Harvey, C. R. (2013). Managerial miscalibration. Quarterly Journal of Business and Economics, 128(4), 1547–1584.

  • Benmelech, E., & Frydman, C. (2015). Military CEOs. Journal of Financial Economics, 117(1), 43–59.

  • Berger, P. G., Ofek, E., & Yermack, D. L. (1997). Managerial entrenchment and capital structure decisions. Journal of Finance, 52(4), 1411–1438.

  • Berle, A. A., & Means, G. C. (1932). The modern corporation and private property. New York, NY: Macmillan.

  • Bernile, G., Bhagwat, V., & Rau, P. R. (2017). What doesn’t kill you will only make you more risk-loving: Early-life disasters and CEO behavior. Journal of Finance, 72(1), 167–206.

  • Bertrand, M., & Schoar, A. (2003). Managing with style: The effect of managers on firm policies. Quarterly Journal of Economics, 118(4), 1169–1208.

  • Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. Journal of Political Economy, 100(5), 992–1026.

  • Billett, M. T., & Qian, Y. (2008). Are overconfident CEOs born or made? Evidence of self-attribution bias from frequent acquirers. Management Science, 54(6), 1037–1051.

  • Birru, J., & Wang, B. (2016). Nominal price illusion. Journal of Financial Economics, 119(3), 578–598.

  • Bizjak, J., Lemmon, M., & Nguyen, T. (2011). Are all CEOs above average? An empirical analysis of compensation peer groups and pay design. Journal of Financial Economics, 100(3), 538–555.

  • Bonaimé, A. A., Öztekin, Ö., & Warr, R. S. (2014). Capital structure, equity mispricing, and stock repurchases. Journal of Corporate Finance, 26, 182–200.

  • Breuer, W., Rieger, M. O., & Soypak, K. C. (2014). The behavioral foundations of corporate dividend policy a cross-country analysis. Journal of Banking and Finance, 42(1), 247–265.

  • Brigham, E. F. (1975). Hurdle rates for screening capital expenditure proposals. Financial Management, 4(3), 17–26.

  • Brown, J. R., Fazzari, S. M., & Petersen, B. C. (2009). Financing innovation and growth: Cash flow, external equity, and the 1990s R&D boom. Journal of Finance, 64(1), 151–185.

  • Brown, N. C., Christensen, T. E., Elliott, B. W., & Mergenthaler, R. D. (2012). Investor Sentiment and pro forma earnings disclosures. Journal of Accounting Research, 50(1), 1–40.

  • Brunswik, E. (1943). Organismic achievement and environmental probability. Psychological Review, 50(3), 255–272.

  • Bulan, L. T., Subramanian, N., & Tanlu, L. D. (2007). On the timing of dividend initiations. Financial Management, 36(4), 31–65.

  • Cain, M. D., & McKeon, S. B. (2016). CEO personal risk-taking and corporate policies. Journal of Financial and Quantitative Analysis, 51(1), 139–164.

  • Campbell, T. C., Gallmeyer, M., Johnson, S. A., Rutherford, J., & Stanley, B. W. (2011). CEO optimism and forced turnover. Journal of Financial Economics, 101(3), 695–712.

  • Campbell, W. K., Goodie, A. S., & Foster, J. D. (2004). Narcissism, confidence, and risk attitude. Journal of Behavioral Decision Making, 17(4), 297–311.

  • Carslaw, C. A. P. N. (1988). Anomalies in income numbers: Evidence of goal oriented behavior. Accounting Review, 63(2), 321–327.

  • Chaplin, W. F., John, O. P., & Goldberg, L. R. (1988). Conceptions of states and traits: Dimensional attributes with ideals as prototypes. Journal of Personality and Social Psychology, 54(4), 541–557.

  • Chatterjee, A., & Hambrick, D. C. (2007). It’s all about me: Narcissistic chief executive officers and their effects on company strategy and performance. Administrative Science Quarterly, 52(3), 351–386.

  • Chen, A. S., & Lin, S. C. (2011). Asymmetrical return on equity mean reversion and catering. Journal of Banking and Finance, 35(2), 471–477.

  • Chen, H., Cohen, L., & Lou, D. (2016). Industry window dressing. Review of Financial Studies, 29(12), 3354–3393.

  • Chetty, R., & Saez, E. (2005). Dividend taxes and corporate behavior: Evidence from the 2003 dividend tax cut. Quarterly Journal of Economics, 120(3), 791–833.

  • Chhaochharia, V., Kim, D., Korniotis, G. M., & Kumar, A. (2019). Mood, firm behavior, and aggregate economic outcomes. Journal of Financial Economics, 132(2), 427–450.

  • Chikh, S., & Filbien, J. Y. (2011). Acquisitions and CEO power: Evidence from French networks. Journal of Corporate Finance, 17(5), 1221–1236.

  • Chui, A. C., Kwok, C. C., & Zhou, G. S. (2016). National culture and the cost of debt. Journal of Banking and Finance, 69, 1–19.

  • Cialdini, R. B., & Goldstein, N. J. (2004). Social influence: Compliance and conformity. Annual Review of Psychology, 55(1), 591–621.

  • Cline, B. N., Walkling, R. A., & Yore, A. S. (2017). The consequences of managerial indiscretions: Sex, lies, and firm value. Journal of Financial Economics, 127(2), 389–415.

  • Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405.

  • Cohen, L., Gurun, U. G., & Malloy, C. (2017). Resident networks and corporate connections: Evidence from World War II internment camps. Journal of Finance, 72(1), 207–248.

  • Cooper, M. J., Dimitrov, O., & Rau, P. R. (2001). A rose.com by any other name. Journal of Finance, 56(6), 2371–2388.

  • Cooper, M. J., Khorana, A., Osobov, I., Patel, A., & Rau, P. R. (2005). Managerial actions in response to a market downturn: Valuation effects of name changes in the dot.com decline. Journal of Corporate Finance, 11(1–2), 319–335.

  • Crémer, J. (1993). Corporate culture and shared knowledge. Industrial and Corporate Change, 2(3), 351–386.

  • Cronqvist, H., Makhija, A. K., & Yonker, S. E. (2012). Behavioral consistency in corporate finance: CEO personal and corporate leverage. Journal of Financial Economics, 103(1), 20–40.

  • Cronqvist, H., & Siegel, S. (2014). The genetics of investment biases. Journal of Financial Economics, 113(2), 215–234.

  • Cronqvist, H., & Yu, F. (2017). Shaped by their daughters: Executives, female socialization, and corporate social responsibility. Journal of Financial Economics, 126(3), 543–562.

  • Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under- and overreactions. Journal of Finance, 53(6), 1839–1885.

  • Davidson, R., Dey, A., & Smith, A. (2015). Executives’ “off-the-job” behavior, corporate culture, and financial reporting risk. Journal of Financial Economics, 117(1), 5–28.

  • De Jong, A., Duca, E., & Dutordoir, M. (2013). Do convertible bond issuers cater to investor demand? Financial Management, 42(1), 41–78.

  • Degeorge, F., Patel, J., & Zeckhauser, R. (1999). Earnings management to exceed thresholds. Journal of Business, 72(1), 1–33.

  • Denis, D. J., & Osobov, I. (2008). Why do firms pay dividends? International evidence on the determinants of dividend policy. Journal of Financial Economics, 89(1), 62–82.

  • Derrien, F., & Kecskés, A. (2007). The initial public offerings of listed firms. Journal of Finance, 62(1), 447–479.

  • Dessaint, O., & Matray, A. (2017). Do managers overreact to salient risks? Evidence from hurricane strikes. Journal of Financial Economics, 126(1), 97–121.

  • Dittmar, A., & Field, L. C. (2015). Can managers time the market? Evidence using repurchase price data. Journal of Financial Economics, 115(2), 261–282.

  • Dong, M., Hirshleifer, D., Richardson, S., & Teoh, S. H. (2006). Does investor misvaluation drive the takeover market? Journal of Finance, 61(2), 725–762.

  • Dong, M., Hirshleifer, D., & Teoh, S. H. (2012). Overvalued equity and financing decisions. Review of Economic Studies, 25(12), 3645–3683.

  • Dong, M., Hirshleifer, D. A., & Teoh, S. H. (2019). Misvaluation and Corporate Inventiveness (Working Paper).

  • Dong, M., Loncarski, I., ter Horst, J., & Veld, C. (2012). What drives security issuance decisions: Market timing, pecking order, or both? Financial Management, 41(3), 637–663.

  • Dougal, C., Engelberg, J., Parsons, C. A., & Van Wesep, E. D. (2015). Anchoring on credit spreads. Journal of Finance, 70(3), 1039–1080.

  • Doukas, J. A., & Petmezas, D. (2007). Acquisitions, overconfident managers and self-attribution bias. European Financial Management, 13(3), 531–577.

  • Doukas, J. A., & Zhang, W. (2016). Envy-motivated merger waves. European Financial Management, 22(1), 63–119.

  • Elster, J. (1991). Envy in social life. In R. J. Zeckhauser (Ed.), Strategy and choice (pp. 49–82). Cambridge, MA: MIT Press.

  • Faleye, O., Kovacs, T., & Venkateswaran, A. (2014). Do better-connected CEOs innovate more? Journal of Financial and Quantitative Analysis, 49(5–6), 1201–1225.

  • Fama, E. F., & French, K. R. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60(1), 3–43.

  • Fazio, R. H., & Olson, M. A. (2003). Implicit measures in social cognition research: Their meaning and use. Annual Review of Psychology, 54(1), 297–327.

  • Feng, X., & Johansson, A. C. (2018). Living through the Great Chinese famine: Early-life experiences and managerial decisions. Journal of Corporate Finance, 48, 638–657.

  • Ferris, S. P., Jayaraman, N., & Sabherwal, S. (2009). Catering effects in corporate dividend policy: The international evidence. Journal of Banking and Finance, 33(9), 1730–1738.

  • Ferris, S. P., Jayaraman, N., & Sabherwal, S. (2013). CEO overconfidence and international merger and acquisition activity. Journal of Financial and Quantitative Analysis, 48(1), 137–164.

  • Ferris, S. P., Sen, N., & Yui, H. P. (2006). God save the queen and her dividends: Corporate payouts in the United Kingdom. Journal of Business, 79(3), 1149–1173.

  • Fiordelisi, F., & Ricci, O. (2014). Corporate culture and CEO turnover. Journal of Corporate Finance, 28, 66–82.

  • Fracassi, C. (2017). Corporate finance policies and social networks. Management Science, 63(8), 2420–2438.

  • Frijns, B., Gilbert, A., Lehnert, T., & Tourani-Rad, A. (2013). Uncertainty avoidance, risk tolerance and corporate takeover decisions. Journal of Banking and Finance, 37(7), 2457–2471.

  • Gabaix, X. (2014). A sparsity-based model of bounded rationality. Quarterly Journal of Economics, 129(4), 1661–1710.

  • Galasso, A., & Simcoe, T. S. (2011). CEO overconfidence and innovation. Management Science, 57(8), 1469–1484.

  • Gao, H. (2010). Market misvaluation, managerial horizon, and acquisitions. Financial Management, 39(2), 833–850.

  • Gervais, S., & Odean, T. (2001). Learning to be overconfident. Review of Financial Studies, 14(1), 1–27.

  • Gilchrist, S., Himmelberg, C. P., & Huberman, G. (2005). Do stock price bubbles influence corporate investment? Journal of Monetary Economics, 52, 805–827.

  • Glaser, M., Nöth, M., & Weber, M. (2004). Behavioral finance. In D. J. Koehle & N. Harvey (Eds.), Blackwell handbook of judgment and decision making (pp. 527–546). Oxford, U.K.: Blackwell.

  • Goel, A. M., & Thakor, A. V. (2005). Green with envy: Implications for corporate investment distortions. Journal of Business, 78(6), 2255–2288.

  • Goel, A. M., & Thakor, A. V. (2008). Overconfidence, CEO selection, and corporate governance. Journal of Finance, 63(6), 2737–2784.

  • Goel, A. M., & Thakor, A. V. (2010). Do envious CEOs cause merger waves? Review of Financial Studies, 23(2), 487–517.

  • Golub, B., & Jackson, M. O. (2012). How hom*ophily affects the speed of learning and best-response dynamics. Quarterly Journal of Economics, 127(3), 1287–1338.

  • Gomes, A., Gopalan, R., Leary, M., & Marcet, F. (2017). Analyst coverage network and corporate financial policies (Working Paper).

  • Gompers, P., Kaplan, S. N., & Mukharlyamov, V. (2016). What do private equity firms say they do? Journal of Financial Economics, 121(3), 449–476.

  • Graham, J. R., & Harvey, C. R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60(2–3), 187–243.

  • Graham, J. R., Harvey, C. R., Popadak, J., & Rajgopal, S. (2017). Corporate culture: Evidence from the field (Working Paper).

  • Graham, J. R., Harvey, C. R., & Puri, M. (2013). Managerial attitudes and corporate actions. Journal of Financial Economics, 109(1), 103–121.

  • Granovetter, M. (2005). The impact of social structure on economic outcomes. Journal of Economic Perspectives, 19(1), 33–50.

  • Green, T. C., & Hwang, B.-H. (2009). Price-based return comovement. Journal of Financial Economics, 93(1), 37–50.

  • Greenwood, R., Hanson, S., & Stein, J. C. (2010). A gap-filling theory of corporate debt maturity choice. Journal of Finance, 65(3), 993–1028.

  • Guiso, L., Sapienza, P., & Zingales, L. (2015). The value of corporate culture. Journal of Financial Economics, 117(1), 60–76.

  • Hackbarth, D. (2008). Managerial traits and capital structure decisions. Journal of Financial and Quantitative Analysis, 43(4), 843–881.

  • Hartzmark, S. M., & Solomon, D. H. (2013). The dividend month premium. Journal of Financial Economics, 109(3), 640–660.

  • Hasan, I., Hoi, C. K., Wu, Q., & Zhang, H. (2017). Social capital and debt contracting: Evidence from bank loans and public bonds. Journal of Financial and Quantitative Analysis, 52(3), 1017–1047.

  • Hayward, M. L. A., & Hambrick, D. C. (1997). Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42(1), 103–127.

  • He, W., & Hu, M. R. (2016). Religion and bank loan terms. Journal of Banking and Finance, 64, 205–215.

  • Heaton, J. B. (2002). Managerial optimism and corporate finance. Financial Management, 31(2), 33–45.

  • Henderson, B. J., Jegadeesh, N., & Weisbach, M. S. (2006). World markets for raising new capital. Journal of Financial Economics, 82(1), 63–101.

  • Hilary, G., & Hui, K. W. (2009). Does religion matter in corporate decision making in America? Journal of Financial Economics, 93(3), 455–473.

  • Hirshleifer, D. (2015). Behavioral finance. Annual Review of Financial Economics, 7(1), 133–159.

  • Hirshleifer, D., Jian, M., & Zhang, H. (2018). Superstition and financial decision making. Management Science, 64(1), 235–252.

  • Hirshleifer, D., Low, A., & Teoh, S. H. (2012). Are overconfident CEOs better innovators? Journal of Finance, 67(4), 1457–1498.

  • Hirshleifer, D., & Teoh, S. H. (2003). Limited attention, information disclosure, and financial reporting. Journal of Accounting and Economics, 36(1–3), 337–386.

  • Hirshleifer, D., & Teoh, S. H. (2018). Social transmission bias and the cultural evolution of folk economic beliefs. Behavioral and Brain Sciences, 41, E170.

  • Hoberg, G., & Phillips, G. (2010). Product market synergies and competition in mergers and acquisitions: A text-based analysis. Review of Financial Studies, 23(10), 3773–3811.

  • Hoberg, G., & Prabhala, N. R. (2009). Disappearing dividends, catering, and risk. Review of Financial Studies, 22(1), 79–116.

  • Holmstrom, B., & Tirole, J. (1991). Multitask principal-agent analyses: Incentive contracts, asset ownership, and job design. Journal of Law, Economics & Organization, 7, 24–52.

  • Hovakimian, A., & Hu, H. (2016). Institutional shareholders and SEO market timing. Journal of Corporate Finance, 36, 1–14.

  • Hribar, P., & Yang, H. (2016). CEO overconfidence and management forecasting. Contemporary Accounting Research, 33(1), 204–227.

  • Huang, R., Tan, K. J. K., & Faff, R. W. (2016). CEO overconfidence and corporate debt maturity. Journal of Corporate Finance, 36, 93–110.

  • Hutton, I., Jiang, D., & Kumar, A. (2014). Corporate policies of republican managers. Journal of Financial and Quantitative Analysis, 49(5–6), 1279–1310.

  • Ikenberry, D. L., Lakonishok, J., & Vermaelen, T. (1995). Market underreaction to open market share repurchases. Journal of Financial Economics, 39(2–3), 181–208.

  • Intintoli, V. J., Jategaonkar, S. P., & Kahle, K. M. (2014). The effect of demand for shares on the timing and underpricing of seasoned equity offers. Financial Management, 43(1), 61–86.

  • Ishii, J., & Xuan, Y. (2014). Acquirer-target social ties and merger outcomes. Journal of Financial Economics, 112(3), 344–363.

  • Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323–329.

  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.

  • Jenter, D., Lewellen, K., & Warner, J. B. (2011). Security issue timing: What do managers know, and when do they know it? Journal of Finance, 66(2), 413–443.

  • Jiang, Z., Kim, K. A., Lie, E., & Yang, S. (2013). Share repurchases, catering, and dividend substitution. Journal of Corporate Finance, 21, 36–50.

  • Jochem, T., & Peters, F. (2019). Bias propagation in economically linked firms (Working Paper).

  • Kadapakkam, P.-R., & Kon, S. J. (1989). The value of shelf registration for new debt issues. Journal of Business, 62(2), 271–292.

  • Kahneman, D. (2003). Maps of bounded rationality: Psychology for behavioral economics. American Economic Review, 93(5), 1449–1475.

  • Kale, J. R., Kini, O., & Payne, J. D. (2012). The dividend initiation decision of newly public firms: Some evidence on signaling with dividends. Journal of Financial and Quantitative Analysis, 47(2), 365–396.

  • Kau, J. B., Linck, J. S., & Rubin, P. H. (2008). Do managers listen to the market? Journal of Corporate Finance, 14(4), 347–362.

  • Kaustia, M., & Rantala, V. (2015). Social learning and corporate peer effects. Journal of Financial Economics, 117(3), 653–669.

  • Kidwell, D. S., Marr, M. W., & Thompson, G. R. (1987). Shelf registration: Competition and market flexibility. Journal of Law, Economics & Organization, 30, 181–206.

  • Kim, Y. H. A. (2013). Self attribution bias of the CEO: Evidence from CEO interviews on CNBC. Journal of Banking and Finance, 37(7), 2472–2489.

  • Kitayama, S., & Uskul, A. K. (2011). Culture, mind, and the brain: Current evidence and future directions. Annual Review of Psychology, 62, 419–452.

  • Kolasinski, A. C., & Li, X. (2013). Can strong boards and trading their own firm’s stock help CEOs make better decisions? Evidence from acquisitions by overconfident CEOs. Journal of Financial and Quantitative Analysis, 48(4), 1173–1206.

  • Krüger, P., Landier, A., & Thesmar, D. (2015). The WACC fallacy: The real effects of using a unique discount rate. Journal of Finance, 70(3), 1253–1285.

  • Kulchania, M. (2013). Catering driven substitution in corporate payouts. Journal of Corporate Finance, 21, 180–195.

  • Kusnadi, Y., & Wei, K. C. (2017). The equity-financing channel, the catering channel, and corporate investment: International evidence. Journal of Corporate Finance, 47, 236–252.

  • Lamont, O. A., & Stein, J. C. (2006). Investor sentiment and corporate finance: Micro and macro. American Economic Review: Papers & Proceedings, 96(2), 147–151.

  • Landier, A., & Thesmar, D. (2009). Financial contracting with optimistic entrepreneurs. Review of Financial Studies, 22(1), 117–150.

  • Larrain, B., & Urzúa I., F. (2013). Controlling shareholders and market timing in share issuance. Journal of Financial Economics, 109(3), 661–681.

  • Leary, M. T., & Roberts, M. R. (2014). Do peer firms affect corporate financial policy? Journal of Finance, 69(1), 139–178.

  • Lee, C., Shleifer, A., & Thaler, R. H. (1991). Investor sentiment and the closed end fund puzzle. Journal of Finance, 46(1), 75–109.

  • Lewin, K. (1935). A dynamic theory of personality—Selected papers. New York, NY: McGraw-Hill.

  • Lewin, K. (1951). Field theory in social science: Selected theoretical papers. New York, NY: Harper & Row.

  • Lewis, C. M., & Tan, Y. (2016). Debt-equity choices, R&D investment and market timing. Journal of Financial Economics, 119(3), 599–610.

  • Li, W., & Lie, E. (2006). Dividend changes and catering incentives. Journal of Financial Economics, 80(2), 293–308.

  • Libby, R., & Rennekamp, K. (2012). Self-serving attribution bias, overconfidence, and the issuance of management forecasts. Journal of Accounting Research, 50(1), 197–231.

  • Liu, X. (2016). Corruption culture and corporate misconduct. Journal of Financial Economics, 122(2), 307–327.

  • Ljungqvist, A., Nanda, V., & Singh, R. (2006). Hot markets, investor sentiment, and IPO pricing. Journal of Business, 79(4), 1667–1702.

  • Ljungqvist, A., & Wilhelm, W. J. (2005). Does prospect theory explain IPO market behavior? Journal of Finance, 60(4), 1759–1790.

  • Loughran, T., McDonald, B., & Yun, H. (2009). A wolf in sheep’s clothing: The use of ethics-related terms in 10-K reports. Journal of Business Ethics, 89, 39–49.

  • Loughran, T., & Ritter, J. R. (1995). The new issues puzzle. Journal of Finance, 50(1), 23–51.

  • Luo, Y. (2005). Do insiders learn from outsiders? Evidence from mergers and acquisitions. Journal of Finance, 60(4), 1951–1982.

  • Malmendier, U. (2018). Behavioral corporate finance. In D. Bernheim, S. DellaVigna, & D. I. Laibson (Eds.), Handbook of Behavioral Economic (Vol. 1, pp. 227–380). New York, NY: Elsevier.

  • Malmendier, U., & Nagel, S. (2011). Depression babies: Do macroeconomic experiences affect risk taking. Quarterly Journal of Economics, 126(1), 373–416.

  • Malmendier, U., & Shanthikumar, D. (2007). Are small investors naive about incentives? Journal of Financial Economics, 85(2), 457–489.

  • Malmendier, U., & Shanthikumar, D. (2014). Do security analysts speak in two tongues? Review of Financial Studies, 27(5), 1287–1322.

  • Malmendier, U., & Tate, G. (2005a). CEO overconfidence and corporate investment. Journal of Finance, 60(6), 2661–2700.

  • Malmendier, U., & Tate, G. (2005b). Does overconfidence affect corporate investment? CEO overconfidence measures revisited. European Financial Management, 11(5), 649–659.

  • Malmendier, U., & Tate, G. (2008). Who makes acquisitions? CEO overconfidence and the market’s reaction. Journal of Financial Economics, 89(1), 20–43.

  • Malmendier, U., & Tate, G. (2009). Superstar CEOs. Quarterly Journal of Economics, 124(4), 1593–1638.

  • Malmendier, U., & Tate, G. (2015). Behavioral CEOs: The role of managerial overconfidence. Journal of Economic Perspectives, 29(4), 37–60.

  • Malmendier, U., Tate, G., & Yan, J. (2011). Overconfidence and early-life experiences: The effect of managerial traits on corporate financial policies. Journal of Finance, 66(5), 1687–1733.

  • Manconi, A., & Massa, M. (2013). A servant to many masters: Competing shareholder preferences and limits to catering. Journal of Financial and Quantitative Analysis, 48(6), 1693–1716.

  • Mannor, M. J., Wowak, A. J., & Bartkus, V. O. (2016). Heavy lies the crown? How job anxiety affects top executive decision making in gain and loss contexts. Strategic Management Journal, 37, 1968–1989.

  • Manski, C. F. (1993). Identification of endogenous social effects: The reflection problem. Review of Economic Studies, 60(3), 531–542.

  • Martin, J. A., & Davis, K. J. (2010). Learning or hubris? Why CEOs create less value in successive acquisitions. Academy of Management Perspectives, 24(1), 79–81.

  • Massa, M., & Zhang, L. (2009). Cosmetic mergers: The effect of style investing on the market for corporate control. Journal of Financial Economics, 93(3), 400–427.

  • Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). Model of trust. Academy of Management Journal, 20(3), 709–734.

  • McPherson, M., Smith-Lovin, L., & Cook, J. M. (2001). Birds of a feather: hom*ophily in social networks. Annual Review of Sociology, 27(1), 415–444.

  • Miller, D., & Ross, M. (1975). Self-serving bias in the attribution of causality: Fact or fiction? Psychological Bulletin, 82(2), 213–225.

  • Minnick, K., & Raman, K. (2014). Why are stock splits declining? Financial Management, 43(1), 29–60.

  • Nguyen, D. D., Hagendorff, J., & Eshraghi, A. (2018). Does a CEO’s cultural heritage affect performance under competitive pressure? The Review of Financial Studies, 31(1), 97–141.

  • Norenzayan, A., Choi, I., & Nisbette, R. N. (2002). Cultural similarities and difference in social infereence: Evidence from behavioral prediction and lay theories of behavior. Personality and Social Psychology Bulletin, 28(1), 109–120.

  • Norman, W. T. (1967). 2,800 personality trait descriptors—Normative operating characteristics for a university population. Ann Arbor: Department of Psychology, University of Michigan.

  • Olie, R. (1990). Culture and integration problems in international mergers and acquisitions. European Management Journal, 8(2), 206–215.

  • O’Reilly, C. A., & Chatman, J. A. (1996). Culture as social control: Corporation, cults, and commitment. Research in Organizational Behavior, 18, 157–200.

  • Pan, Y., Siegel, S., & Wang, T. Y. (2017). Corporate risk culture. Journal of Financial and Quantitative Analysis, 52(6), 2327–2367.

  • Parise, G. (2013). Do underpriced firms innovate less? (Working Paper).

  • Polk, C., & Sapienza, P. (2009). The stock market and corporate investment: A test of catering theory. Review of Financial Studies, 22(1), 187–217.

  • Ravenscraft, D., & Scherer, F. M. (1982). The lag structure of returns to research and development. Applied Economics, 14(6), 603–620.

  • Rhodes-Kropf, M., & Viswanathan, S. (2004). Market valuation and merger waves. Journal of Finance, 56(6), 2685–2718.

  • Richardson, S., Teoh, S. H., & Wysocki, P. D. (2004). The walk-down to beatable analysts’ forecasts: The roles of equity issuance and insider trading incentives. Contemporary Accounting Research, 21(4), 885–924.

  • Ritter, J. R. (1991). The long-run performance of initial public offerings. Journal of Finance, 46(1), 3–27.

  • Roll, R. (1986). The hubris hypothesis of corporate takeovers. Journal of Business, 59(2), 197–216.

  • Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23(3), 393–404.

  • Santos, F. (2017). IPO market timing with uncertain aftermarket retail demand. Journal of Corporate Finance, 42, 247–266.

  • Sarkissian, S., & Schill, M. J. (2016). Cross-listing waves. Journal of Financial and Quantitative Analysis, 51(1), 259–306.

  • Savor, P. G., & Lu, Q. (2009). Do stock mergers create value for acquirers? Journal of Finance, 64(3), 1061–1097.

  • Scharfstein, D. S., & Stein, J. C. (1990). Herd behavior and investment. American Economic Review, 80(3), 465–479.

  • Schneider, C., & Spalt, O. (2016). Conglomerate investment, skewness, and the CEO long-shot bias. Journal of Finance, 71(2), 635–672.

  • Schoar, A., & Zuo, L. (2016). Does the market value CEO styles? American Economic Review: Papers & Proceedings, 106(5), 262–266.

  • Schoar, A., & Zuo, L. (2017). Shaped by booms and busts: How the economy impacts CEO careers and management styles. Review of Financial Studies, 30(5), 1425–1456.

  • Schultz, P. (2003). Pseudo market timing and the long-run underperformance of IPOs. Journal of Finance, 58(2), 483–517.

  • Shefrin, H. (2009). Behavioralizing finance. Foundations and Trends in Finance, 4(1–2), 1–184.

  • Shefrin, H., & Statman, M. (1984). Explaining investor preference for cash dividends. Journal of Financial Economics, 13(2), 253–282.

  • Sherman, R. A., Nave, C. S., & Funder, D. C. (2010). Situational similarity and personality predict behavioral consistency. Journal of Personality and Social Psychology, 99(2), 330–343.

  • Shleifer, A. (2000). Inefficient markets: An introduction to behavioral finance. Oxford, U.K.: Oxford University Press.

  • Shleifer, A., & Vishny, R. W. (2003). Stock market driven acquisitions. Journal of Financial Economics, 70(3), 295–311.

  • Shue, K. (2013). Executive networks and firm policies: Evidence from the random assignment of MBA peers. Review of Financial Studies, 26(6), 1401–1442.

  • Silver, A. (1990). Friendship in commercial society: Eighteenth-century social theory and modern sociology. American Journal of Sociology, 95(6), 1474–1504.

  • Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99–118.

  • Sitkin, S. B., & Roth, N. L. (1993). Explaining the limited effectiveness of legalistic “remedies” for trust/distrust. Organization Science, 4(3), 367–392.

  • Smircich, L. (1983). Concepts of culture and organizational analysis. Administrative Science Quarterly, 28(3), 339–358.

  • Smith, R. H., & Kim, S. H. (2007). Comprehending envy. Psychological Bulletin, 133(1), 46–64.

  • Spiess, D. K., & Affleck-Graves, J. (1995). Underperformance in long-run stock returns following seasoned equity offerings. Journal of Financial Economics, 38(3), 243–267.

  • Stein, J. C. (1996). Rational capital budgeting in an irrational world. Journal of Business, 69(4), 429–455.

  • Stolper, O. A., & Walter, A. (2019). Birds of a feather: The impact of hom*ophily on the propensity to follow financial advice. Review of Financial Studies, 32(2), 524–563.

  • Tate, G., & Yang, L. (2015). Female leadership and gender equity: Evidence from plant closure. Journal of Financial Economics, 117(1), 77–97.

  • Teoh, S. H., Welch, I., & Wong, T. (1998a). Earnings management and the long-run market performance of initial public offerings. Journal of Finance, 53(6), 1935–1974.

  • Teoh, S. H., Welch, I., & Wong, T. (1998b). Earnings management and the underperformance of seasoned equity offerings. Journal of Financial Economics, 50(1), 63–99.

  • Thaler, R. H. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior and Organization, 1(1), 39–60.

  • Thaler, R. H. (2016). Behavioral economics: Past, present, and future. American Economic Review, 106(7), 1577–1600.

  • Tian, X., & Wang, T. Y. (2014). Tolerance for failure and corporate innovation. Review of Financial Studies, 27(1), 211–255.

  • Trahan, E. A., & Gitman, L. J. (1995). Bridging the theory-practice gap in corporate finance: A survey of chief financial officers. Quarterly Review of Economics and Finance, 35(1), 73–87.

  • Turner, J. D., Ye, Q., & Zhan, W. (2013). Why do firms pay dividends?: Evidence from an early and unregulated capital market. Review of Finance, 17(5), 1787–1826.

  • Tversky, A., & Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5(2), 207–232.

  • Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124–1131.

  • Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35–67.

  • Van Bekkum, S., Smit, H., & Pennings, E. (2011). Buy smart, time smart: Are takeovers driven by growth opportunities or mispricing? Financial Management, 40(4), 911–940.

  • Van den Steen, E. (2010a). Culture clash: The costs and benefits of hom*ogeneity. Management Science, 56(10), 1718–1738.

  • Van den Steen, E. (2010b). On the origin of shared belief (and corporate culture). RAND Journal of Economics, 41(4), 617–648.

  • Vermaelen, T., & Xu, M. (2014). Acquisition finance and market timing. Journal of Corporate Finance, 25, 73–91.

  • Weld, W. C., Michaely, R., Thaler, R. H., & Benartzi, S. (2009). The nominal share price puzzle. Journal of Economic Perspectives, 23(2), 121–142.

  • Wu, Y. L. (2010). What’s in a name? What leads a firm to change its name and what the new name foreshadows. Journal of Banking and Finance, 34(6), 1344–1359.

  • Yang, B. (2013). Dynamic capital structure with heterogeneous beliefs and market timing. Journal of Corporate Finance, 22, 254–277.

  • Zingales, L. (2015). The “cultural revolution” in finance. Journal of Financial Economics, 117(1), 1–4.

Behavioral and Social Corporate Finance (2024)
Top Articles
Latest Posts
Article information

Author: Jerrold Considine

Last Updated:

Views: 6235

Rating: 4.8 / 5 (58 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Jerrold Considine

Birthday: 1993-11-03

Address: Suite 447 3463 Marybelle Circles, New Marlin, AL 20765

Phone: +5816749283868

Job: Sales Executive

Hobby: Air sports, Sand art, Electronics, LARPing, Baseball, Book restoration, Puzzles

Introduction: My name is Jerrold Considine, I am a combative, cheerful, encouraging, happy, enthusiastic, funny, kind person who loves writing and wants to share my knowledge and understanding with you.