-merger performance. These results hold controlling for CEO overconfidence and cannot be attributed to firms altering incentives to induce …

Casual observations suggest that bidder managers sometimes pay more than the economic value of target in mergers and … that bidder managers exploit their information advantage about the pricing implications of overpaid acquisitions by … acquisitions. Second, we document that bidder managers pay more than the economic value of targets not due to managerial hubris or …

link between financial stability and the risk-taking incentives embedded in the executive compensation contracts at banks …

A long-standing controversy is whether CEO employment contracts insulate inferior managers from discipline leading to …, long-term equity incentives, accelerated stock and option vesting provisions in severance arrangement, and more refined …

This paper analyzes the CEO incentives of inside debt in the form of deferred equity compensation in the context of M …

obtain high-powered incentives and, hence, a high personal income at the merger-management stage. …

structural method and calculating shareholder valuations from stock market reactions to takeovers, I find that acquiring managers … overvalue targets by 63% of target capitalization. As a result, acquiring managers pick targets that provide no synergy gains in … 17% of takeovers and overbid by 13% of target capitalization in the rest. Private benefits sought by acquiring managers …

This paper examines the effect of risk-taking incentives on acquisition investments. We find that CEOs with risk …-taking incentives are more likely to invest in acquisitions. Economically, an inter-quartile range increase in vega translates into an … approximately 4.22% enhancement in acquisition investments, consistent with the theory that risk-taking incentives induce CEOs to …