Note(s): In this part, PSM approach estimated for variables of subsamples (consist of treatment and control group) obtained from the PSM method. We use the median of Overconfidence as the main variable. The firm size (Size) is the natural log of total assets’ book value, market to book ratio (MTB) is the market value to book value of firm’s total assets, leverage (Lev) is total debts divided by total assets, institutional ownership (Inst) is the sum of institutional ownership’ percentage, managerial ownership (Mgt) is the percentage of the shares owned by the managers, board size (B_size) is the sum of the board of directors, board independence (B_Ind) is the independent directors divided by the total number of the board of directors and ROA is the income before extraordinary items scaled by lagged total assets. LOSS is an indicator variable equal to one for firm-years with negative income before extraordinary items of t and t−1 years, otherwise zero. Ret_Std is the standard deviation of stock returns over the three past years. Cfo_Std is the standard deviation of operating cash flow over the three past years. The standard deviation of profitability changes over three years is used to measure environmental uncertainty (VIX). ***, ** and * indicate statistical significance at the 0.01, 0.05, and 0.10 levels, respectively

Source(s): Author’s own work