期刊
JOURNAL OF FINANCIAL ECONOMICS
卷 119, 期 3, 页码 533-558出版社
ELSEVIER SCIENCE SA
DOI: 10.1016/j.jfineco.2016.01.022
关键词
Overconfidence; Compensation structure; Incentive compensation
资金
- DECRA grant [DE150100895]
- summer research award from School of Business at George Mason University
We examine the impact of overconfidence on compensation structure. Our findings support the exploitation hypothesis: firms offer incentive-heavy compensation contracts to overconfident Chief Executive Officers (CEOs) to exploit their positively biased views of firm prospects. Overconfident CEOs receive more option-intensive compensation and this relation increases with CEO bargaining power. Exogenous shocks (Sarbanes-Oxley Act of 2002 (SOX) and Financial Accounting Standard (FAS) 123R) provide additional support for the findings. Overconfident non-CEO executives also receive more incentive-based pay, independent of CEO overconfidence, buttressing the notion that firms tailor compensation contracts to individual behavioral traits such as overconfidence. (C) 2016 Elsevier B.V. All rights reserved.
作者
我是这篇论文的作者
点击您的名字以认领此论文并将其添加到您的个人资料中。
推荐
暂无数据