By Promila Agarwal, Saneesh Edacherian, Amit Karna, Ashneet Kaur, Sudhanshu Maheshwari
Cross Cultural & Strategic Management | May 2025
https://doi.org/10.1108/CCSM-03-2024-0065
Agarwal P, Edacherian S, Karna A, Kaur A, Maheshwari S (2025), "Governance beyond borders: exploring executive overconfidence and firm performance using meta-analysis". Cross Cultural & Strategic Management, Vol. 32 No. 2 pp. 414–435
Cross Cultural & Strategic Management, May 2025
Purpose
This study examines the complex relationship between executive overconfidence and firm performance, highlighting the moderating role of country-level factors. By conducting a meta-analysis of 116 independent effect sizes from global studies, this research aims to clarify the ambiguous effects of executive overconfidence, emphasizing the significance of national contexts.
Design/methodology/approach
Utilizing a cross-national meta-analytic framework, this study evaluates how variations in governance, board efficacy and shareholder protection across countries influence the impact of executive overconfidence on firm performance.
Findings
Results reveal that the relationship between executive overconfidence and performance is significantly shaped by country-level factors, suggesting a need to consider contextual influences alongside traditional trait-focused perspectives and underscoring the importance of contextual influences.
Practical implications
The findings suggest that organizations should incorporate national-level contextual factors in their governance structures to better manage the risks associated with executive overconfidence.
Originality/value
This study advances the literature by providing a comprehensive analysis of how country-specific variables modulate the effects of executive overconfidence on firm outcomes. It offers new insights into the role of situational factors in executive behavior, contributing to a more nuanced understanding of leadership and organizational performance.
Dr. Ashneet Kaur is an faculty in Organisation Behavior at the Indian School of Business (ISB). Her work lies at the intersection of strategic HRM, technology (including AI), and entrepreneurship, with a focus on how organisations design people systems to enable agility, scale, and sustained performance.
She holds a PhD from IIM Ahmedabad and has prior experience in both academia and consulting, having worked on projects with leading organisations such as McKinsey and Deloitte. Her research explores contemporary HR challenges in startups, small, and large organisations, particularly in contexts of rapid growth and digital transformation.
Beyond research and teaching, she actively engages with industry through leadership development programs, consulting, and board-level roles. Her work aims to bridge rigorous academic insights with real-world managerial practice.
