In May 1997, the Japanese Commercial Code was amended to allow firms to begin granting stock options as compensation to top management and employees. Nearly 350 firms adopted option-based compensation plans between 1997 and 2001. These options typically have five year lives and are...

We test whether Japanese leading CEOs are optimistic and miscalibrated using 50 years of survey data conducted by the Nihon Keizai Newspaper on New Year's Day. In a sense, this study is a complement to Ben-David, Graham and Harvey (2010), who find U.S. executives are severely miscalibrated using...

In May 1997, the Japanese Commercial Code was amended to allow firms to begin granting stock options as compensation to top management and employees. Nearly 350 firms adopted option-based compensation plans between 1997 and 2001. These options typically have five year lives and are...