The Effect of Managerial Overconfidence on Banking Systemic Risk
- DOI
- 10.2991/aebmr.k.201126.063How to use a DOI?
- Keywords
- Overconfidence managers, CoVaR, Systemic Risk
- Abstract
Our researcSh aims to examine the relationship between managerial overconfidence and its implication to the banking systemic risk. From behavioral finance perspective, overconfidence managers are more likely to overestimate the future return of the investment project or undertake risky project thus increase their contribution of systemic risk. In this research we use conditional value at risk (CoVaR) approach to measure systemic and to measure managerial overconfidence we use investment based proxy derived from the deviation of expected investment. Using data of Indonesian banks from 2004 – 2014, we found that bank with managerial overconfidence have statistically significant positive influence to the systemic risk compared to non-overconfidence managerial banks.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Rhenty Puspita AU - Buddi Wibowo PY - 2020 DA - 2020/11/27 TI - The Effect of Managerial Overconfidence on Banking Systemic Risk BT - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020) PB - Atlantis Press SP - 571 EP - 577 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.201126.063 DO - 10.2991/aebmr.k.201126.063 ID - Puspita2020 ER -