Shuhui Wang, Hirindu Kawshala

This Advisor explores how CEO overconfidence influences firm complexity, drawing on analysis of over 14,000 earnings call transcripts. While confident leaders may aim to streamline operations, the findings show a 3.1% reduction in complexity among firm…

Shuhui Wang and Hirindu Kawshala analyze more than 14,000 earnings call transcripts to examine how CEO overconfidence impacts firm complexity. They find that overconfident CEOs tend to reduce complexity, often at the cost of long-term alignment, as ill…