, generally implicit assumption that managers cannot undo their incentive packages, (ii) the standard modeling practice of … motives in managers' portfolio choices. …

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 …

delivers two predictions. First, managers have an incentive to reduce the correlation between inside debt and company stock in … bad times. Second, managers that reduce such a correlation take on more risk in bad times. Using a sample of U.S. public …

earnings management (REM). The study results show that overconfident managers are more likely to adopt REM than AEM …