CEO Overconfidence and Shareholder Wealth Ita Ukhtianti Qanitah
Faculty of Economic and Business, Airlangga University
Abstract
This study aims to determine the effect of the CEO overconfidence on shareholder wealth during Covid-19 pandemic and understand the function of free cash flow in moderating the effect of CEO overconfidence to shareholder wealth. Wealth Added Index (WAI) which was developed by The Stern Stewart Consulting Firm is used as an indicator of shareholder wealth. WAI performance measure is used to determine which companies provide their shareholders more wealth. The population of this study are companies listed on the SWA100 index in 2020-2022. The period represents the period of the pandemic. This research will use quantitive research methods and the sample will be analized using multiple regression analysis.
Keywords: CEO overconfidence- shareholder wealth- free cash flow- WAI
