The effect of CEO overconfidence on equity-based entry mode choice
| Autor: | Yi-ChunChou, 周怡君 |
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| Rok vydání: | 2012 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 100 Entry mode has been an important issue since the beginning of the research of international expansion strategy, and the external and internal environmental factors have been widely discussed in the past. The former topic includes issues such as political or economic environment, and the latter, firms’ capacity and knowledge. However, still no research uses overconfidence to explain entry mode decision-making. According to previous literature, overconfident people tend to adopt more risk-taking behaviors, possess higher level of control, and overestimate their ability to generate returns. As a result, they may have higher propensity to choose wholly owned subsidiaries rather than joint ventures as the firms’ international expansion modes to enter their targeted foreign markets. In this study, we use binary regression analysis to test the hypothesis. According to our empirical analysis, the result is positive and significant, and indicates that overconfident CEOs indeed prefer to choose wholly owned subsidiaries instead of joint venture as mode of foreign market entry. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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