Unlike existing studies that mostly focus on investors’ biased behavior in explaining the lottery-related anomaly, our study highlights the importance of CEO overconfidence for the anomaly. We propose that CEO overconfidence could enhance investors’ confidence in the stock's price even if the stock exhibits lottery-like payoffs. As a result, lottery stocks with overconfident CEOs are less prone to subsequent underperformance. Based on portfolio-based analyses and cross-sectional regressions, we provide robust evidence to confirm this hypothesis. Our study has important implications to the literature on both lottery-related anomaly and CEO overconfidence.

与主要关注投资者在解释彩票相关异常时的偏见行为的现有研究不同，我们的研究强调了 CEO 过度自信对异常的重要性。我们认为 CEO 过度自信可以增强投资者对股票价格的信心，即使股票表现出类似彩票的收益。因此，首席执行官过度自信的彩票股票不太可能随后表现不佳。基于基于投资组合的分析和横截面回归，我们提供了有力的证据来证实这一假设。我们的研究对有关彩票相关异常和 CEO 过度自信的文献具有重要意义。