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Earnings management is found to be driven by different managerial incentives. Previous studies have identified that executive compensation contracts create incentives for earnings management. The agency theory and the positive accounting theory provide explanations for contract-driven earnings...
Persistent link: https://www.econbiz.de/10010897721
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-theories impact overconfidence and risk taking. Self-theories deal with how an individual perceives some of her attributes such as … growth). All decisions taken by young Vietnamese executives were incentivized to identify their degree of overconfidence and … risk taking. As in previous studies, we find that subjects exhibit significant overconfidence. We also find that fixed …
Persistent link: https://www.econbiz.de/10011146222
(average age 82) and one of younger students (average age 20). We examine confidence, decisions under uncertainty, differences …
Persistent link: https://www.econbiz.de/10005487392
This paper examines whether overconfidence can explain the relationship between performance and behavior of investors … aggregate investor behavior to know whether overconfidence is a market-wide phenomenon. It is found that overconfident investors … volatility. However, overconfidence effect exists only following bull markets. After a period of stock gains, overconfident …
Persistent link: https://www.econbiz.de/10005080770
This paper studies the extent to which risk-taking incentives of CEOs and other governance features in a range of years prior to the recent financial crisis were related to the write-downs of U.S. financial institutions during the crisis. We document that institutions whose CEOs had particularly...
Persistent link: https://www.econbiz.de/10008922910
Bonus taxes have been implemented to prevent managers from taking excessive risks. This paper analyzes the effects of … a bonus tax intensifies managers' risk-taking behavior and decreases their effort. The principal responds to a bonus tax …
Persistent link: https://www.econbiz.de/10009351464
Performance-contingent compensation by means of stock options may induce risk-taking in agents that is excessive from the point of view of the company or the shareholders. We test whether increasing shareholder control may be an effective checking mechanism to rein in such excessive risk-taking....
Persistent link: https://www.econbiz.de/10010865776
Persistent link: https://www.econbiz.de/10008783813
Using college student samples, two studies were conducted to validate the Chinese version of the Domain-Specific Risk-Taking (DOSPERT) Scale. The results replicated important findings reported by Weber et al. (2002) in the Chinese culture. Risk-taking and risk perception were domain-specific,...
Persistent link: https://www.econbiz.de/10010539625