The Effect of Overconfidence on the Sensitivity of CEO Wealth to Equity Risk

被引：12
|
作者：
Niu, Jijun [1 ]
机构：
[1] Simon Fraser Univ, Fac Business Adm, Burnaby, BC V5A 1S6, Canada
来源：
JOURNAL OF FINANCIAL SERVICES RESEARCH | 2010年 / 38卷 / 01期
关键词：
Overconfidence; CEO compensation; Risk taking; Bank; CAPITAL STRUCTURE DECISIONS; INVESTMENT OPPORTUNITY SET; STOCK OPTION PORTFOLIOS; MANAGEMENT COMPENSATION; OWNERSHIP STRUCTURE; BANKING; VOLATILITY; DIVERSIFICATION; DEREGULATION; DIVIDEND;
D O I：
10.1007/s10693-010-0081-8
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Recent theory predicts that shareholders provide overconfident managers with weaker risk-taking incentives. We test this prediction using a sample of bank CEOs over the period 1993-2002. We classify a CEO as overconfident if he is more often characterized as confident than as cautious in press. Consistent with theory, we find that the sensitivity of CEO wealth to equity risk is lower for overconfident CEOs. Our finding suggests that shareholders know whether a CEO is overconfident, and take that into account when designing the compensation contract for the CEO.
引用
收藏
页码：23 / 39
页数：17
相关论文
共 50 条
  • [21] Terrorist attacks, CEO overconfidence, and CEO compensation
    Hwang, Yunji
    Han, Seung Hun
    FINANCE RESEARCH LETTERS, 2022, 46
  • [22] Terrorist attacks, CEO overconfidence, and CEO compensation
    Hwang, Yunji
    Han, Seung Hun
    FINANCE RESEARCH LETTERS, 2022, 46
  • [23] CEO overconfidence, CEO dominance and corporate acquisitions
    Brown, Rayna
    Sarma, Neal
    JOURNAL OF ECONOMICS AND BUSINESS, 2007, 59 (05) : 358 - 379
  • [24] CEO Overconfidence and Firm Performance: The Moderating Effect of Restaurant Franchising
    Kim, Hong Soon
    Jang, SooCheong
    CORNELL HOSPITALITY QUARTERLY, 2021, 62 (02) : 276 - 292
  • [25] CEO Overconfidence, CEO Compensation, and Earnings Manipulation
    Yu, Chia-Feng
    JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH, 2014, 26 (02) : 167 - 193
  • [26] CEO overconfidence and IRS attention
    Lartey, Theophilus
    Uddin, Moshfique
    Danso, Albert
    Wood, Geoffrey
    JOURNAL OF FINANCIAL STABILITY, 2022, 61
  • [27] Goodwill impairment and CEO overconfidence
    Killins, Robert
    Ngo, Thanh
    Wang, Hongxia
    JOURNAL OF BEHAVIORAL AND EXPERIMENTAL FINANCE, 2021, 29
  • [28] Overconfidence and Disposition Effect in Indian Equity Market: An Empirical Evidence
    Prosad, Jaya M.
    Kapoor, Sujata
    Sengupta, Jhumur
    Roychoudhary, Saurav
    GLOBAL BUSINESS REVIEW, 2018, 19 (05) : 1303 - 1321
  • [29] CEO Overconfidence and Management Forecasting
    Hribar, Paul
    Yang, Holly
    CONTEMPORARY ACCOUNTING RESEARCH, 2016, 33 (01) : 204 - 227
  • [30] CEO overconfidence and corporate tournaments
    Vitanova, Ivana
    MANAGERIAL AND DECISION ECONOMICS, 2022, 43 (05) : 1423 - 1438
12345