Fitri Santi, S.E, M.Si., lecturer of the Department of Management, Faculty of Economics and Business, University of Bengkulu, successfully earned a doctorate degree from the Faculty of Economics and Business UGM after undergoing an open examination on Tuesday (21/6). On that occasion, Fitri defended his dissertation entitled Manager Overconfidence Effect Against Sensitivity Influence On Cash Flow Investment Decision.
From the research conducted at various companies listed in the Jakarta Stock Exchange in the period of 1999-2013, it is known that there is a sensitivity of the investment decision phenomenon on the cash flow in Indonesian companies. In addition, their overconfidence bias on the company's CEO has a positive effect on investment.
"If the company's CEO is overconfident, the investment is likely to be greater than the investment that the CEO is not overconfident," she said.
Other findings showed that overconfidence bias increases the sensitivity of investment cash flow. Next, in the high funding companies the sensitivity of investment to cash flow is shown higher with overconfident CEO. Then, the sensitivity of investment to cash flow is shown higher when the company is in higher needs.