Abstract
We study the impact of CEO overconfidence on workplace safety. We provide robust evidence of a positive relation between CEO overconfidence and workplace injury rates, implying that CEO overconfidence impairs workplace safety. In cross-sectional analysis, we find that the documented effect is amplified among firms with greater concentration of decision rights in headquarters and higher employee turnover, while is mitigated among firms with stronger labor union presence and more effective corporate governance mechanisms. Additional analysis points to increased employee workload and poor corporate safety culture as the mechanisms behind the documented detrimental effect of CEO overconfidence on workplace safety.
| Original language | English |
|---|---|
| Article number | 102430 |
| Number of pages | 21 |
| Journal | Journal of Corporate Finance |
| Volume | 82 |
| Early online date | 6 Jun 2023 |
| DOIs | |
| Publication status | Published - Oct 2023 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2023 Elsevier B.V.
Keywords
- CEO overconfidence
- Injury rates
- Workplace safety