The Effect Of Manager´s Overconfidence On Aquisition

Abstract

The aim of this thesis is to study how manager´s overconfidence effects on acquisitions in buyer´s point of view. Overconfidence is cognitive bias that effects on human behavioural that made hu-mans overestimate their skills and underestimate risks which influences decision-making. The thesis examines overconfidence´s effect on acquisitions based on prior literature on the topic.

The study consists of literature review that examines acquisitions and overconfidence. Literature review also examines how overconfidence manager´s effect on acquisitions outcome based on prior findings. Based on these findings, the thesis finds overconfidence manager´s having negative effect on acquisitions outcome.