Pengaruh Tingkat Percaya Diri CEO terhadap Risiko Penurunan Harga Saham dengan Efisiensi Investasi sebagai Mediasi
Abstract
CEO has a role to make investment decisions. Age, education and work experience are factors can effect the CEO's confidence level to making decisions. When the investment decisions biased and risk lowering the company's performance, there will be a CEO's decision to delay bad information. Long delays bad information will increase stock price crash risk on future. Therefore, the purpose of this study is to examine the effect of the CEO's confidence level on future stock price crash risk with investment efficiency as a mediation. The manufacturing sector is used as the object of research with 98 companies as research samples with a research period from 2011-2019. Path analysis was used as an analytical technique and Sobel test as a measure of mediation. The results of this study prove that investment efficiency is able to mediate the effect of CEO's confidence level on future stock price crash risk.
Keywords: CEO's Confidence Level; Investment Efficiency; Future Stock Price Decrease Risk.
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References
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McNichols, M. F., dan Stubben, S. R. (2008). Does Earnings Management Affect Firms' Investment Decisions? The Accounting Review, 83(6), 1571-1603.
Ullah, I., Majeed, M. A., Fang, H. X., dan Khan, M. A. (2020). Female CEOs and Investment Efficiency: Evidence from an Amerging Economy. Pasific Accounting Review. Doi: 10.1108/PAR-08-2019-0099
Wang, Y., Chen, C. R., Chen, L., dan Huang, Y. S. (2016). Overinvestment, Inflation Uncertainty, and Managerial Overconfidence: Firm Level Analysis of Chinese Corporations. North American Journal of Economics and Finance, 38, 54-69. Doi: 10.1016/j.najef.2016.07.001
Xiaorong, L., Shuye, W. S., dan Xue, W. (2017). Trust and Stock Price Crash Risk: Evidence from China. Journal of Banking & Finance, 76, 74-91. Doi: 10.1016/j.jbankfin.2016.12.003
Yang, Y., Ma, Y. J., dan Zhu, X. P. (2011). Managerial Overconfidence and Firm Performance. Journal of Tianjin University of Commerce, 6, 4-23.
Chen, J., Hong, H., dan Stein, J. C. (2001). Forecasting Crashes: Trading Volume, Past Returns, and Conditional Skewness in Stock Prices. Journal of Financial Economics, 61(3), 345-381. Doi: 10.1016/S0304-405X(01)00066-6
Cheng, M., Dhaliwal, D., dan Zhang, Y. (2013). Does Investment Efficiency Improve After the Disclosure of Material Weaknesses in Internal Control Over Financial Reporting? Journal of Accounting and Economics, 56(1), 1-18.
Galasso, A., dan Simcoe, T. S. (2011). CEO Overconfidence and Innovation. Management Science, 57(8). Doi: 10.1287/mnsc.1110.1374
Gerayli, M. S., Abdoli, M., Valiyan, H., dan Damavandi, A. (2021). Managerial Overconfidence and Internal Control Weakness: Evidence from Iranian Firms. Accounting Research Journal, 34(5), 475-487. Doi: 10.1108/ARJ-02-2020-0043
Gervais, S., Heaton, J. B., dan Odean, T. (2011). Overconfidence, Compensation Contract, and Capital Budgeting. The Journal of Finance, 55(5), 1735-1777.
Gomariz, C. M. F., dan Ballesta, S. J. P. (2014). Financial Reporting Quality, Debt Maturity, and Investment Efficiency. Journal of Banking & Finance, 40(1), 494-506.
Gupta, G., Mahakud, J., dan Debata, B. (2018). Impact of CEO's Characteristics on Investment Decisions of Indian Listed Firms: Does Crisis Make Any Difference? Cogent Economics & Finance, 6(1). Doi: 10.1080/23322039.2018.1439258
Habib, A., dan Hasan, M. M. (2017). Managerial Ability, Investment Efficiency and Stock Price Crash Risk. Research in International Business and Finance, 42, 262-274. Doi: 10.1016/j.ribaf.2017.07.048
Hair Jr, J. F., M., H. G. T., Ringle, C. M., dan Sarstedt, M. (2016). A Primer on PArtial Least Squares Structural Equation Modeling (PLS-SEM): Sage Publications.
Hambrick, D. C., dan Mason, P. A. (1984). Upper Echelons: The Organization as Reflection of Its Top Managers. Academy of Management Review, 9(2), 193-206. Doi: 10.5465/amr.1984.4277628
He, Y., Chen, C., dan Hu, Y. (2019). Managerial Overconfidence, Internal Financing and Investment Efficiency: Evidence from China. Research in International Business and Finance, 47, 501-510. Doi: 10.1016/j.ribaf.2018.09.010
Hirshleifer, D., Low, A., dan Teoh, S. H. (2012). Are Overconfident CEOs Better Innovators? The Journal of Finance, 67(4), 1457-1498. Doi: 10.1111/j.1540-6261.2012.01753.x
Huang, W., Jiang, F., Liu, Z., dan zhang, M. (2011). Agency Cost, Top Executives' Overconfidence, and Investment Cash Flow Sensitivity - Evidence from Listed Companies in China. Pacific-Basin Finance Journal, 19(3), 261-277. Doi: 10.1016/j.pacfin.2010.12.001
Hur, K. S., Kim, D. H., dan Cheung, J. H. (2019). Managerial Overconfidence and Cost Behavior of R&D Expenditures. Sustainability, 11(18). Doi: 10.3390/su11184878
Jensen, M. C., dan Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305-360. Doi: 10.1016/0304-405X(76)90026-X
Khurana, I. K., Moser, W. J., dan Raman, K. K. (2018). Tax Avoidence, Managerial Ability, and Investment Efficiency. A Journal of Accounting, Finance and Business Studies, 54(4). Doi: 10.1111/abac.12142
Khurana, I. K., Pereira, R., dan Zhang, E. X. (2018). Is Real Earnings Smoothing Harmful? Evidence from Firm-Spesific Stock Price Crash Risk. Contemporary Accounting Research, 35(1), 558-587. Doi: 10.1111/1911-3846.12353
Kim, J. B., Wang, W., dan Zhang, L. (2016). CEO Overconfidence and Stock Price Crash Risk. Contemporary Accounting Research, 33(4), 1720-1749. Doi: 10.1111/1911-3846.12217
Lee, Y. C., Lu, Y. C., dan Wang, Y. C. (2018). Corporate Social Irresponsibility, CEO Overconfidence and Stock Price Crash Risk. Applied Economics Letters. Doi: 10.1080/13504851.2018.1540835
Leverty, J. T., dan Grace, M. F. (2012). Dupes or Incompetents? An Examination of Management's Impact on Firm Distress. Journal of Risk and Insurance, 79(3), 751-783. Doi: 10.1111/j.1539-6975.2011.01443.x
Li, Q., dan Guo, M. (2020). Local Economic Performance, Political Promotion, and Stock Price Crash Risk: Evidence from China. Emerging Markets Finance and Trade. Doi: 10.1080/1540496X.2020.1809373
Liang, Q., Ling, L., Tang, J., Zeng, H., dan Zhuang, M. (2019). Managerial overconfidence, firm transparency, and stock price crash risk: Evidence from an emerging market. China Finance Review International, 10(3), 271-296. Doi: 10.1108/cfri-01-2019-0007
Mamun, M. A., Balachandran, B., dan Duong, H. N. (2020). Powerful CEOs and Stock Price Crash Risk. Journal of Corporate Finance, 62. Doi: 10.1016/j.jcorpfin.2020.101582
McNichols, M. F., dan Stubben, S. R. (2008). Does Earnings Management Affect Firms' Investment Decisions? The Accounting Review, 83(6), 1571-1603.
Ullah, I., Majeed, M. A., Fang, H. X., dan Khan, M. A. (2020). Female CEOs and Investment Efficiency: Evidence from an Amerging Economy. Pasific Accounting Review. Doi: 10.1108/PAR-08-2019-0099
Wang, Y., Chen, C. R., Chen, L., dan Huang, Y. S. (2016). Overinvestment, Inflation Uncertainty, and Managerial Overconfidence: Firm Level Analysis of Chinese Corporations. North American Journal of Economics and Finance, 38, 54-69. Doi: 10.1016/j.najef.2016.07.001
Xiaorong, L., Shuye, W. S., dan Xue, W. (2017). Trust and Stock Price Crash Risk: Evidence from China. Journal of Banking & Finance, 76, 74-91. Doi: 10.1016/j.jbankfin.2016.12.003
Yang, Y., Ma, Y. J., dan Zhu, X. P. (2011). Managerial Overconfidence and Firm Performance. Journal of Tianjin University of Commerce, 6, 4-23.
Published
2021-10-27
How to Cite
YUSUF, Nila Hiliyah.
Pengaruh Tingkat Percaya Diri CEO terhadap Risiko Penurunan Harga Saham dengan Efisiensi Investasi sebagai Mediasi.
E-Jurnal Akuntansi, [S.l.], v. 31, n. 10, p. 2490-2502, oct. 2021.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/75103>. Date accessed: 19 nov. 2024.
doi: https://doi.org/10.24843/EJA.2021.v31.i10.p07.
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