Showing 1 - 10 of 17
), this could not be attributed to overconfidence. …
Persistent link: https://www.econbiz.de/10005029662
overconfidence bias does not aect informational efficiency, price volatility, rational traders’ expected profits or their welfare …. Intuitively, as overconfidence goes up, so does price infornativeness, which makes rational agents cut their information …
Persistent link: https://www.econbiz.de/10005772209
underconfident. Self-selection implies greater confidence (but not necessarily overconfidence) among those who start new businesses …Excess entry – or the high failure rate of market-entry decisions – is often attributed to overconfidence exhibited by … entrepreneurial skill, it does not imply overconfidence. Judgmental fallibility leads to excess entry even when everyone is …
Persistent link: https://www.econbiz.de/10005772370
. Overconfidence, as such, plays no role. This hypothesis is confirmed in an experimental study that also documents the phenomenon of …
Persistent link: https://www.econbiz.de/10005772407
We study relative performance evaluation in executive compensation when executives have private information about their ability. We assume that the joint distribution of an individual firm’s profit and market movements depends on the ability of the executive that runs the firm. In the...
Persistent link: https://www.econbiz.de/10005772084
Executive compensation packages are often valued in an inconsistent manner: while employee stock options (ESOs) are typically valued ex-ante, cash bonuses are valued ex-post. This renders the existing valuation models of employee compensation packages theoretically unsatisfactory and,...
Persistent link: https://www.econbiz.de/10005772106
Illusory correlation refers to the use of information in decisions that is uncorrelated with the relevant criterion. We document illusory correlation in CEO compensation decisions by demonstrating that information, that is uncorrelated with corporate performance, is related to CEO compensation....
Persistent link: https://www.econbiz.de/10005772490
Preparers of accounting information are in a position to manipulate the view of economic reality presented in this information to interested parties. These manipulations can be regarded as morally reprehensible because they are not fair to users, they involve an unjust exercise of power, and...
Persistent link: https://www.econbiz.de/10010891947
This paper explores the nature and incidence of creative accounting practices within the context of ethical considerations.It explores several definitions of creative accounting and the potential and the range of reasons for a company's directors to engage in creative accounting. Later the paper...
Persistent link: https://www.econbiz.de/10005772484
After the accounting scandals that have taken place mainly in the United States during the last years, some Spanish leading authorities have defended the idea that this kind of accounting problems cannot happen in Spain. They argue that accounting regulation in Europe, and specifically in Spain,...
Persistent link: https://www.econbiz.de/10005707989