The moderating role of CEO overconfidence on debt maturity decisions: evidence from the MENA region

What is it about?

This research affirms that given CEOs' psychological and behavioral attributes, it is pivotal to understand the effect of managerial overconfidence on a company's debt maturity choice. Then, shareholders and the board of directors should incorporate and monitor the CEO's behavioral aspects, especially for growth-seeking firms. Further, capital market regulators and policymakers, particularly in MENA region markets, should consider the weaker internal control that deteriorates more when overconfident managers exist. Thus, our investigated research problem allows the reader to identify the importance of understanding and monitoring the consequences of managerial overconfidence and its impact on the decisions to determine when these decisions need to encourage and compensated and when they should be restricted by shareholders and the board of directors.

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