Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)

The Effect of Managerial Overconfidence on Banking Systemic Risk

Authors
Rhenty Puspita, Buddi Wibowo
Corresponding Author
Rhenty Puspita
Available Online 27 November 2020.
DOI
10.2991/aebmr.k.201126.063How to use a DOI?
Keywords
Overconfidence managers, CoVaR, Systemic Risk
Abstract

Our researcSh aims to examine the relationship between managerial overconfidence and its implication to the banking systemic risk. From behavioral finance perspective, overconfidence managers are more likely to overestimate the future return of the investment project or undertake risky project thus increase their contribution of systemic risk. In this research we use conditional value at risk (CoVaR) approach to measure systemic and to measure managerial overconfidence we use investment based proxy derived from the deviation of expected investment. Using data of Indonesian banks from 2004 – 2014, we found that bank with managerial overconfidence have statistically significant positive influence to the systemic risk compared to non-overconfidence managerial banks.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
27 November 2020
ISBN
10.2991/aebmr.k.201126.063
ISSN
2352-5428
DOI
10.2991/aebmr.k.201126.063How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Rhenty Puspita
AU  - Buddi Wibowo
PY  - 2020
DA  - 2020/11/27
TI  - The Effect of Managerial Overconfidence on Banking Systemic Risk
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 571
EP  - 577
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.063
DO  - 10.2991/aebmr.k.201126.063
ID  - Puspita2020
ER  -