Tag Archives: stephen ferris

Over-Confident CEOs Can Put Companies at Risk, MU Study Finds

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COLUMBIA, Mo. ­— CEOs need to demonstrate strong leadership and good decision-making skills, but CEOs with over-confidence can involve their companies in riskier ventures and put investors’ funds at risk, according to a new study from the University of Missouri, Georgia Tech University and the University of Texas-Arlington.

“Over-confident CEOs feel they have superior decision-making abilities and are more capable than their peers,” said Stephen Ferris, professor of finance in the MU Trulaske College of Business. “Unfortunately, they tend to make decisions about mergers or acquisitions that can be viewed as risky. For example, CEOs who are over-confident tend to target companies that do not focus on their core line of business. Generally speaking, mergers that diversify companies don’t work.” (more…)

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Two CEOs Can Be Better Than One

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*MU study finds executives with shared responsibilities succeed and provide value to shareholders*

COLUMBIA, Mo. – Many believe that two corporate heads are not better than one. However, a University of Missouri researcher has found that more companies have co-CEOs than previously though and that having two people in the senior leadership position is actually very successful for businesses.

“Americans have long championed captains and titans of industry, but this research shows that having two corporate leaders can work,” said Stephen Ferris, professor and director of the Financial Research Institute in the University of Missouri Trulaske College of Business. “In fact, co-CEOs are ideal in many situations, especially when the executives provide oversight of each other’s actions and provide complementary skill sets.” (more…)

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