CEO optimism and Corporate Investment: evidence from listed companies in Malaysia

• Main Author: Tan, Xing Rong
• Format: Final Year Project Report
• Language: English
• Published: Universiti Malaysia Sarawak (UNIMAS) 2019
• Subjects: HG Finance
• Online Access: http://ir.unimas.my/id/eprint/38069/2/TAN%20XING%20RONG.pdf; http://ir.unimas.my/id/eprint/38069/

This study intended to scrutinize the impact of Chief Executive Officer (CEO)'s optimism behavior towards corporate investment decision. The sample set of this study is acquired from Malaysia top 100 public listed companies by market capitakzation for 1;5 years. which is from the year 2003 until 2017. In this stud-. the dividend payout ratio is proposed to measure CE(Ys optimism. The findings show that ('EO's optimism is negatively significant towards corporate investment. where an optimistic CEO tend to involve less in investment activities. Moreover, the other independent such as firm's performance and interaction variable between optimism and cash flow are positively significant towards corporate investment. When the company have sufficient cash flow. an optimistic CEO tend to invest more. In addition. the study found that there are more male CEO than female and the average age of CIE) is 53 years old. The main purpose of this research is to discover the optimistic level of CEO in Malaysia with the associated agency problem and provides a fundamental research for the study of behavior finance of CEO in Malaysia.