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(37) L=JEKLG;CE9JC=LJ=9;LAGFK9KKG;A9L=<OAL@)9FFGMF;=E=FLK 9F<!+ acquisitiveness which refers to CEOs’ tendency to pay high or low premiums as well as their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(39) 9F<H=JKGF9DALQHKQ;@GDG?Q "MJL@=JEGJ= L@AKKLM<Q<AKLAF?MAK@=K ALK=D>AFL@=K=FK=L@9LAL>G;MK=KGF9HGKALAN=H=JKGF9DALQLJ9AL 9KGHHGK=<LGF=?9LAN=:A9K=KO@A;@ @9N=:==F>J=IM=FLDQKLM<A=<HJ=NAGMKDQ 0@=<AKHGKALAGFG>L@=L@=KAKAK9K>GDDGOK "AJKL O=:=?AF:QHJ=K=FLAF? HJ=NAGMKDAL=J9LMJ=9F< J=K=9J;@ AF L@= >A=D<K G> ;GJHGJ9L= >AF9F;= ) :=@9NAGJ9D HKQ;@GDG?Q 9F< H=JKGF9DALQ HKQ;@GDG?Q /=;GF< O= HJ=K=FL 9F< =D9:GJ9L= GF L@= 9<GHL=< J=K=9J;@ E=L@G<GDG?Q MK=< >GJ @QHGL@=KAK L=KLAF? >GDDGO=< :Q 9 <AK;MKKAGF 9:GML DAEAL9LAGFK 0@AJ< L@= =EHAJA;9D J=KMDLK 9J= HJ=K=FL=<>GDDGO=<:Q9F9F9DQKAK9F<<AK;MKKAGFAF;DM<AF?KGE=KM??=KLAGFK>GJ>MJL@=JJ=K=9J;@ Lastly, we briefly recap the study’s background, main findings and present the conclusions. . #ADDE=JL,=JKKGF. .

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mith’s book called 88;?4<C48>9>30",>?<0,8/,?=0=91>30*0,6>391",>498=HM:DAK@=<AF 9F<L@=A<=9G>AF=>>=;LAN=E9F9?=E=FLAF>AJEKOAL@FGF

(42) GOF=JE9F9?=JK9?=FLKO@G9J=@AJ=< to manage the owners’ (i.e. the principals’) investments. Rational agents make decisions that best K=JN=L@=AJGOFHJAN9L=AFL=J=KLO@AD=KAEMDL9F=GMKDQ@9NAF?LGJ=KHGF<LGL@=F==<K9F<OAK@=K G> L@= HJAF;AH9D AF LMJF ?ANAF? JAK= LG 9?=F;Q ;GF>DA;LK .GKK !AK=F@9J<L 9C=J 3MJ?D=J K&=FK=F@A?@DA?@LK L@AK;GF>DA;L;9MK=K9?=F;Q;GKLKLG9JAK=O@=FL@= 9?=FL ;@GGK=K LG HMJKM= L@=AJ GOF AFL=J=KLK 9F< L9C= 9;LAGFK L@9L ?G 9?9AFKL K@9J=@GD<=J N9DM= E9PAEAR9LAGF %FH9KLJ=K=9J;@ 9?=F;QL@=GJQ@9K:==FOA<=DQMK=<LG=PHD9AFHGGJH=J>GJE9F;= of firms’ top management, who have their own private incentives which may not be in line with L@= E9PAEAR9LAGF G> K@9J=@GD<=J N9DM= &=FK=F )=;CDAF? =;9MK= G> L@AK L@=Q JAKC =F?9?AF? AF N9DM= <=KLJGQAF? ) 9;LANALA=K LG 9;@A=N= H=JKGF9D ?9AFK ?J9O9D )9F<=DC=J 1987; Jensen, 1986; Harford, 1999). For example, there is empirical evidence for “empire building”, A = 9H@=FGE=FGFO@=J=LGHE9F9?=JK=F?9?=AF)LJ9FK9;LAGFKHJAE9JADQLGE9C=L@=>AJE ?JGOAFKAR= O@A;@AFLMJFAF;J=9K=KL@=AJHJAN9L=;GEH=FK9LAGF9F<9:ADALQLG;GFKME=H=JIMAKAL=K &=FK=F)=;CDAF? $9J>GJ< FGL@=J=P9EHD=G>L@=9?=F;Q;GF>DA;L;9F:=K==F O@=F=N=J!+K9F<LGHE9F9?=E=FL ;GFKA<=JAF?L@9LL@=Q9J=MFHJGHGJLAGF9DDQ=PHGK=<LGGF= KAF?D=KGMJ;=G>AF;GE= =F?9?=AF<AN=JKA>A;9LAGFKLJ9L=?A=KOAL@L@=E9AFHMJHGK=G><AN=JKA>QAF? L@=AJ GOF H=JKGF9D O=9DL@ ;> &=FK=F 0@AK CAF< G> K=D>

(43) K=JNAF? 9?=FL :=@9NAGJ AK 9DKG. #ADDE=JL,=JKKGF. .

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(46) 9?=FL ;GF>DA;L AK ADDMKLJated in top managers’ preferences to finance projects, such as M&A activities, using internally ?=F=J9L=<>J==;9K@>DGOKAFGJ<=JLG9NGA<:=AF?K;JMLAFAR=<:Q;9HAL9DE9JC=LKKGE=L@AF?O@A;@ AF=NAL9:DQOGMD<>GDDGOO@=FJ9AKAF?F=O;9HAL9D>JGE;9HAL9DHJGNA<=JKGMLKA<=L@=>AJE&=FK=F $9J>GJ< $GO=N=J E9F9?=JKE9Q:=AF;DAF=<LGJ9AK=>MF<K:QAKKMAF?=IMALQO@=F the firm’s stock is overvalued in order to take advantage of a temporary mispricing by the financial E9JC=L/@D=A>=J2AK@FQ &=FK=F +F9KAEAD9JL@=E= AL@9K:==FG:K=JN=<L@9L>AJEK O@A;@=P@A:AL;=JL9AF>AF9F;A9D;GF<ALAGFK KM;@9K9D9J?=;9K@J=K=JN=9F<9@A?@<=:L;9H9;ALQ 9J= more likely to initiate “low

(47) benefit” and even value destroying M&A activities&=FK=F =KHAL=ALK@AKLGJA;9DHJGEAF=F;= 9?=F;QL@=GJQ@9K9DKG:==F>J=IM=FLDQ;JALA;AR=<:QJ=K=9J;@=JK AFL@=>A=D<G>HKQ;@GDG?Q9F<KG;AGDG?Q>GJALKMFJ=9DAKLA;9KKMEHLAGFKG>;GEHD=L=AF<ANA<M9DAKLA; MLADALQ9F<=;GFGEA;J9LAGF9DALQ 9NAK /;@GGJE9F GF9D<KGF K9J=KMDL L@AK;JALA;AKE @9K KHMJJ=< F=O O9QK G> L@AFCAF? 9:GML E9F9?=JA9D AF;=FLAN=K 9;LAGFK 9F< EGLAN9LAGFK 9K J=K=9J;@=JKK=LGMLLG>AF<F=O=PHD9F9LAGFK>GJO@QE9F9?=JK 9KO=DD9KAFN=KLGJK9F<>AF9F;A9D E9JC=LK O=J=FGL:=@9NAF?9KLJ9<ALAGF9DL@=GJQKL9L=<L@=QK@GMD<KGE=L@AF?O@A;@MDLAE9L=DQ D=<LGL@=;J=9LAGFG>L@=J=D9LAN=DQF=O@Q:JA<>A=D<G>:=@9NAGJ9D>AF9F;=/@D=A>=J 9C=J 3MJ?D=J =@9NAGJ9D>AF9F;=<J9OKGF:=@9NAGJ9DHKQ;@GDG?Q9F<D9J?=DQ=NGDN=<>JGEL@=A<=9KG> 9FA=D '9@F=E9F9F<EGK0N=JKCQ O@G;JALA;AR=<=PH=;L=<MLADALQL@=GJQ9F<KM:K=IM=FLDQAFLJG<M;=< HKQ;@GDG?A;9D>9;LGJK9KF=O=PHD9F9LAGFK>GJAJJ9LAGF9D:=@9NAGJAF<=;AKAGF

(48) E9CAF?HJG;=KK=K= ? '9@F=E9F0N=JKCQ 0@=>A=D<9DKGJ=;=AN=<AF;J=9K=<9LL=FLAGF9F<AF>DM=F;=9JGMF<L@= LAE=G>L@=<GL

(49) ;GE:M::D=O@=FAFN=KLGJK@9<9K==EAF?DQMF;GFKLJ9AF=< 9F<LGKGE==PL=FL AJJ9LAGF9D 9HH=LAL= >GJ AFN=KLE=FLK AF @A?@

(50) L=;@ >AJEK AF L@= AFL=JF=L K=;LGJ 9C=J 3MJ?D=J =@9NAGJ9D .9<:9<,>0 >AF9F;= >MJL@=J ;@9DD=F?=K 9F< J=D9P=K L@= MF<=JDQAF? J9LAGF9DALQ 9KKMEHLAGFK G> L@= LJ9<ALAGF9D ;GJHGJ9L= >AF9F;= <AK;AHDAF= :Q AFLJG<M;AF? 9KKMEHLAGFK G> AFN=KLGJ

(51) 9F< E9F9?=JA9D AJJ9LAGF9DALQ BMKL DAC= AF :=@9NAGJ9D >AF9F;= GN=J9DD 9F< :A9K=K AF L@= <=;AKAGF

(52) making process relating to a firm’s financing

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(54) 9F<BM<?E=FL9D:A9K=K>GMF<AF:=@9NAGJ9D HKQ;@GDG?QL@9L;9F9>>=;L<=;AKAGF

(55) E9CAF?HJG;=KK=K /GE=G>L@=A<=FLA>A=<:A9K=KL@9L@9N=:==F AFN=KLA?9L=< AF H9KL J=K=9J;@ AF;DM<= :ML 9J= FGL DAEAL=< LG !+ @M:JAK GN=J;GF>A<=F;= F9J;AKKAKE 9F;@GJAF?:A9K @=J< :=@9NAGJ9F<;GF>AJE9LAGF:A9K9EGF? GL@=JK DDAF9DD L@=K= A<=FLA>A=< :=@9NAGJ9D :A9K=K ;9F := K9A< LG J=HJ=K=FL F=O =PHD9F9LAGFK 9F< AFKA?@LK 9K LG O@Q E9F9?=JKE9QFGLAF>9;L:=@9N=AF9;;GJ<9F;=OAL@;D9KKA;9D>AF9F;=L@=GJA=K . . =@9NAGJ9DHKQ;@GDG?QAKL@=KLM<QG>@GO@ME9F:=@9NAGJJ=D9L=KLGL@=EAF< "MJL@=JEGJ= :=@9NAGJ9DHKQ;@GDG?Q is also founded on the idea that behavior is the result of conditioning which stems from interaction with one’s =FNAJGFE=FLO@A;@AFLMJFK@9H=GMJ9;LAGFK39LKGF . #ADDE=JL,=JKKGF. .

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p. 214) puts it: “Management intentions may be fully consistent with honorable KL=O9J<K@AHof corporate assets, but actions need not always turn out to be right”. Malmendier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

(64) . AK9F9<<ALAGF9D:A9KL@9L;9F:=<=K;JA:=<9KL@=@ME9FL=F<=F;QLGJ=DQLGG@=9NADQGFL@=>AJKL HA=;= G> AF>GJE9LAGF L@9L GF= ;GE=K 9;JGKK 0N=JKCQ '9@F=E9F @=F;= J=KMDLAF? AF KC=O=<=KLAE9L=KO@A;@AFLMJF9>>=;LL@=<=;AKAGF

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(66) D9C="A;@E9F 9C=J3MJ?D=J AAL@=AJ>==DAF?K O@A;@;9F HD9Q 9 EGJ= HJGEAF=FL JGD= L@9F DG?A;9D J=9KGFAF? AF L@=AJ JAKC

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uring the early 1980s and 1990s, Goldberg (1990; 1993) coined the concept of “Big Five Factors” 9K9O9QLG:JAF?LG?=L@=JL@=>AF<AF?KG>AF<=H=F<=FLJ=K=9J;@=JK;GF<M;LAF?H=JKGF9DALQKLM<A=K MF<=J9;GEEGFME:J=DD9;> 0@MJKLGF= DDHGJL+<:=JL 9LL=DD *GJE9F );J9=GKL9 %F=KK=F;= L@=A?"AN=H=JKGF9DALQLJ9ALKEG<=DAK9L9PGFGEQG> K=N=J9D <AKLAF;L H=JKGF9DALQ LJ9ALK 9F< L@= EG<=D AK H9JLA;MD9JDQ :9K=< GF L@= KG

(68) ;9DD=< (=PA;9D $QHGL@=KAK 0@=@QHGL@=KAKKL9L=KL@9LL@=EGKLJ=D=N9FL<A>>=J=F;=K9EGF?AF<ANA<M9DK9J=AF>9;L =F;G<=<AFD9F?M9?=9F<L@9LL@=K=<A>>=J=F;=K AFLMJF 9J=EGJ=DAC=DQLG:==PHJ=KK=<9K9KAF?D= OGJ<L@=EGJ=AEHGJL9FLL@=Q9J=9KL9L=E=FLO@A;@@9K9DKG:==FKMHHGJL=<:QJA?GJGMKJ=K=9J;@ (Goldberg, 1990; 1993; De Raad & Mlačić, 2017). That being said, the Big Five personality trait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uthors’ own visualization. !7&.98 .,- 4< ?J==9:D=F=KK NK AK9?J==9:D=. "JA=F<DQCAF< ;GGH=J9LAN= LJMKLAF? O9JE. FL9?GFAKLA; >9MDL

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