In retrospect: The influence of chief executive officers’ historical relative pay on overconfidence

Autor:	Wei Shi, Daniel Jinyong Zyung
Rok vydání:	2021
Předmět:	050208 finance Actuarial science Strategy and Management 0502 economics and business 05 social sciences Industrial relations Total compensation Business and International Management Psychology Attribution 050203 business & management Education Overconfidence effect
Zdroj:	Strategic Organization. 20:627-651
ISSN:	1741-315X 1476-1270
DOI:	10.1177/14761270211004891
Popis:	This study proposes that chief executive officers who have received over their tenure a greater sum of total compensation relative to the market’s going rate become overconfident. We posit that this happens because historically overpaid chief executive officers perceive greater self-worth to the firm whereby such self-serving attribution inflates their level of self-confidence. We also identify chief executive officer- and firm-level cues that can influence the relationship between chief executive officers’ historical relative pay and their overconfidence, suggesting that chief executive officers’ perceived self-worth is more pronounced when chief executive officers possess less power and when their firm’s performance has improved upon their historical aspirations. Using a sample of 1185 firms and their chief executive officers during the years 2000–2016, we find empirical support for our predictions. Findings from this study contribute to strategic leadership research by highlighting the important role of executives’ compensation in creating overconfidence.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e44796ca373ef05d4e44489515ff7bec https://doi.org/10.1177/14761270211004891 Zobrazit plný text záznamu