Accounting Seminar - Sebahattin Demirkan

Date and Time Date and Time

2023-04-12 23:30

2023-04-13 00:30

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Accounting Seminar - Sebahattin Demirkan

Independent directors of a firm with an overconfident CEO and CFO sell their stock holdings whereas subordinate executives do not do so significantly. The related trades change with the length of common tenure. The independent directors sell more, and subordinate executives sell less, in response to firm-level overconfidence when they share longer tenure with their CEO and CFO. We also show that firm-level overconfidence is reduced during the quarter after stock sales by independent directors and subordinate executives. Our paper documents overconfidence of CEO and CFO as a significant determinant of insider trading, and insider trading as a significant determinant of reduced firm-level overconfidence.

Speaker Information

Sebahattin Demirkan