This paper investigates the effect of superstar CEOs on their competitors. Exploiting shocks to CEO status due to prestigious media awards, we document a significant positive stock market performance of competitors of superstar CEOs subsequent to the award. The effect is more pronounced for...

We examine the impact of managerial optimism on the inclusion of performance-pricing provisions in syndicated loan contracts (PSD). Optimistic managers may view PSD as a relatively cheap form of financing given their upwardly biased expectations about the firm's future cash flow. Indeed, we find...

This paper studies how division managers' access to venture capital (VC) markets affects the internal capital allocation decision of a multi-division firm. Division managers may leave firms and seek venture financing if their project ideas are not funded by headquarters. A successful new venture...

I examine how the debt covenant structure of a firm varies with managerial risk-taking incentives via CEO compensation sensitivities to stock return volatility (Vega). I build a comprehensive firm debt covenant index by including both public and private debt issues. I find a robust negative...

We administered OLS regressions test on the overconfidence bias and the board of directors to obtain evidence concerning CEOs psychological traits and attitudes. We find that CEOs in Tunisian firms are overconfident and the board of directors characteristics as size, independence and duality can...

In this paper, we present a literature review and classification scheme for investment cash flow sensitivity under behavioral corporate finance. The former consists of all published articles between 2000 and 2011 in different journals that are appropriate outlets for BCF research. The articles...

This paper proposes a new approach to study how corporate policies change upon the replacement of the CEO. We employ empirical Bayes simultaneous tests on the executive fixed effects and find a significant heterogeneity in their styles. Furthermore, we implement a measure that explores the...

Corporate managers often invest in activities that are deemed to be socially responsible. In some instances, these investments enhance shareholder value. However, in other cases, altruistic managers or managers who privately benefit from the positive attention arising from these activities may...

This paper uses Taiwanese data to examine the impact of firm-level corporate governance mechanisms on firms' average cash holdings. Specifically, it examines how a firm's number of banking relationships and the percentages of managerial ownership and board ownership impact the firm's level of...