Table 2 Descriptive statistics and mean...

Table 2

Descriptive statistics and mean difference test (observations = 1,445)

Panel A. descriptive statistics
Variables	Mean	Std.Dev	Minimum	Q1	Median	Q3	Maximum
Complexity1	14.521	1.100	11.608	13.713	14.522	15.373	17.098
Complexity2	15.877	0.781	13.844	15.310	15.874	16.480	17.676
Complexity3	13.207	1.306	8.407	12.290	13.345	13.969	16.561
CEOOC	0.497	0.501	0.000	0.000	0.000	1.000	1.000
CEOTen	3.643	3.378	1.000	1.000	2.000	5.000	15.000
CEOFinExpt	0.126	0.332	0.000	0.000	0.000	0.000	1.000
BInd	0.655	0.190	0.000	0.600	0.600	0.800	1.000
BFinExpt	0.177	0.142	0.000	0.000	0.200	0.200	0.600
InstOwn	0.688	0.199	0.112	0.610	0.743	0.837	0.955
Size	14.857	1.517	10.533	14.018	14.694	15.480	20.307
ROA	0.177	0.152	−0.235	0.065	0.166	0.292	0.595
Accruals	0.062	0.184	−0.321	−0.048	0.043	0.136	1.355
Loss	0.075	0.265	0.000	0.000	0.000	0.000	1.000
SalesG	0.386	0.486	−0.577	0.088	0.252	0.587	2.742
MTB	4.528	3.109	0.683	2.242	3.434	6.339	10.872
LnAge	3.666	0.365	2.639	3.401	3.738	3.970	4.234
ForeignS	0.784	0.413	0.000	1.000	1.000	1.000	1.000
Segment	0.422	0.495	0.000	0.000	0.000	1.000	1.000

Panel A. descriptive statistics
Variables	Mean	Std.Dev	Minimum	Q1	Median	Q3	Maximum
Complexity1	14.521	1.100	11.608	13.713	14.522	15.373	17.098
Complexity2	15.877	0.781	13.844	15.310	15.874	16.480	17.676
Complexity3	13.207	1.306	8.407	12.290	13.345	13.969	16.561
CEOOC	0.497	0.501	0.000	0.000	0.000	1.000	1.000
CEOTen	3.643	3.378	1.000	1.000	2.000	5.000	15.000
CEOFinExpt	0.126	0.332	0.000	0.000	0.000	0.000	1.000
BInd	0.655	0.190	0.000	0.600	0.600	0.800	1.000
BFinExpt	0.177	0.142	0.000	0.000	0.200	0.200	0.600
InstOwn	0.688	0.199	0.112	0.610	0.743	0.837	0.955
Size	14.857	1.517	10.533	14.018	14.694	15.480	20.307
ROA	0.177	0.152	−0.235	0.065	0.166	0.292	0.595
Accruals	0.062	0.184	−0.321	−0.048	0.043	0.136	1.355
Loss	0.075	0.265	0.000	0.000	0.000	0.000	1.000
SalesG	0.386	0.486	−0.577	0.088	0.252	0.587	2.742
MTB	4.528	3.109	0.683	2.242	3.434	6.339	10.872
LnAge	3.666	0.365	2.639	3.401	3.738	3.970	4.234
ForeignS	0.784	0.413	0.000	1.000	1.000	1.000	1.000
Segment	0.422	0.495	0.000	0.000	0.000	1.000	1.000

Panel B: mean difference test between firms with rational CEOs and firms with overconfident CEOs
	Rational CEO	Overconfident CEO	Mean Dif	t-stat
Complexity1	14.335	14.708	0.372**	2.417
Complexity2	15.740	16.016	0.276**	2.524
Complexity3	12.998	13.419	0.421**	2.298
CEOTen	2.920	4.370	1.454***	3.097
CEOFinExpt	0.180	0.070	−0.109**	−2.351
BInd	0.713	0.598	−0.115***	−4.485
BFinExpt	0.192	0.162	−0.030	−1.510
InstOwn	0.712	0.664	−0.048*	−1.717
Size	15.072	14.640	−0.432**	−2.022
ROA	0.170	0.183	0.013	0.610
Accruals	0.086	0.037	−0.048*	−1.867
Loss	0.040	0.110	0.071*	1.903
SalesG	0.332	0.441	0.109	1.588
MTB	4.361	4.697	0.336	0.763
LnAge	3.725	3.606	−0.119**	−2.330
ForeignS	0.680	0.890	0.213***	3.757
Segment	0.340	0.500	0.157**	2.254
Observations	726	719

Panel B: mean difference test between firms with rational CEOs and firms with overconfident CEOs
	Rational CEO	Overconfident CEO	Mean Dif	t-stat
Complexity1	14.335	14.708	0.372**	2.417
Complexity2	15.740	16.016	0.276**	2.524
Complexity3	12.998	13.419	0.421**	2.298
CEOTen	2.920	4.370	1.454***	3.097
CEOFinExpt	0.180	0.070	−0.109**	−2.351
BInd	0.713	0.598	−0.115***	−4.485
BFinExpt	0.192	0.162	−0.030	−1.510
InstOwn	0.712	0.664	−0.048*	−1.717
Size	15.072	14.640	−0.432**	−2.022
ROA	0.170	0.183	0.013	0.610
Accruals	0.086	0.037	−0.048*	−1.867
Loss	0.040	0.110	0.071*	1.903
SalesG	0.332	0.441	0.109	1.588
MTB	4.361	4.697	0.336	0.763
LnAge	3.725	3.606	−0.119**	−2.330
ForeignS	0.680	0.890	0.213***	3.757
Segment	0.340	0.500	0.157**	2.254
Observations	726	719

Note(s): This table presents the descriptive statistics and the mean difference test results between firms with rational CEOs and firms with overconfident CEOs. The level of statistical significance is indicated by *p < 0.10, **p < 0.05 and ***p < 0.01. The definitions of the variables can be found in Appendix 2

Source(s): Author’s own creation

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