Optimal Bank Interest Margin and Shareholder Interest Conflicts under CEO Overconfidence: A Constrained Option-Pricing Model

被引：0

作者：

Lin, Jyh-Horng ^{[1
]}

Lii, Peirchyi ^{[2
]}

Jou, Rosemary ^{[3
]}

机构：

[1] Tamkang Univ, Grad Inst Int Business, 151 Ying Chuan Rd, Tamsui 251, Taipei County, Taiwan

[2] Asia Univ, Coll Management, Taichung, Taiwan

[3] Tamkang Univ, Grant Inst Management Sci, Taipei, Taiwan

来源：

PROCEEDINGS OF THE 11TH WSEAS INTERNATIONAL CONFERENCE ON MATHEMATICAL AND COMPUTATIONAL METHODS IN SCIENCE AND ENGINEERING (MACMESE '09) | 2009年

关键词：

CEO Overconfidence; Bank Margin; Call Pricing;

D O I：

暂无

中图分类号：

O29 [应用数学];

学科分类号：

070104 ;

摘要：

Less is known about how equity returns allocated between current and new shareholders are altered to react to chief executive officer (CEO) overconfidence. This paper uses a nonlinear constrained contingent claim methodology of and Merton (1974) to explore interest conflicts between current and new shareholders when an overconfident bank CEO overestimates returns on investment projects, and sequentially raises too much in external funds when internal resources become scarce. We show that low levels of bank interest margins or equity returns, which decrease the claims of current shareholders, are associated with investment distortions; but high levels of bank equity returns, which dilute the claims of current shareholders, are associated with external financing distortion.

引用

页码：208 / +

页数：2

共 28 条

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