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Purpose – The purpose of this study was to examine the relevance between managerial centrality and managerial overconfidence. The higher the managerial centrality, the higher is expected to be the managerial overconfidence. Design/methodology/approach– This study wants to verify the relevance between managerial centrality and managerial overconfidence through multiple regression analysis. To this end, the management centrality is measured by the manager compensation difference (CEO Pay Slice; CPS) presented in the Bebchuk, Martijn and Peyer (2011), and the managerial overconfidence is measured by the methodology presented in the research in Ahmed and Dullman (2013) and Schrand and Zechman(2012), respectively. The study sample is 1,250 companies-year in the non-financial company, which closed in December on listing the Korea Exchange from 2013 to 2017. Findings– Empirical analysis results, CEO Pay Slice (CPS) and managerial overconfidence was found to have a positive (+) relevance at a statistically significant level. So the larger the managerial centrality, the higher the managerial overconfidence. Therefore, it has been shown that there are differences in managerial overconfidence depending on the managerial centrality. Research implications or Originality– It is expected that this study will contribute to the research in that it is the first study to verify that the managerial centrality affects the managerial overconfidence.
