This study examines whether terrorist attacks influence corporate investments and firm value. We expect that overconfident CEOs can mitigate the underinvestment problem caused by terrorist attacks because they overestimate the returns on investment. Using measures of terrorist attack proximity in the U.S., we find that firms with non-overconfident CEOs significantly decrease their investment growth when terrorist attacks affect them, while firms with overconfident CEOs do not. Consequently, the impact of terrorist attacks on firm value varies between firms with overconfident and non-overconfident CEOs. Overall, this study suggests that CEO overconfidence can benefit shareholder value under certain conditions, such as terrorist attacks.

本研究考察恐怖袭击是否影响企业投资和公司价值。我们预计过度自信的 CEO 可以缓解恐怖袭击造成的投资不足问题，因为他们高估了投资回报。使用美国恐怖袭击接近度的衡量标准，我们发现，CEO 不过度自信的公司在受到恐怖袭击影响时会显着降低其投资增长，而 CEO 过度自信的公司则不会。因此，恐怖袭击对公司价值的影响在 CEO 过度自信和非过度自信的公司之间存在差异。总体而言，这项研究表明，在某些情况下，例如恐怖袭击，CEO 过度自信可以使股东价值受益。