Since August 2009, German legislation allows for voluntary Say on Pay Votes (SoPV) during Annual General Meetings (AGMs). We examine 1,169 AGMs of all German listed firms with more than 10,000 agenda items over the period 2010-2013 to identify (1) determinants and approval rates of voluntary...

Using a large sample of U.S. firms for the period 1993-2009, we provide evidence that the sensitivity of a chief financial officer's (CFO) option portfolio value to stock price is significantly and positively related to the firm's future stock price crash risk. In contrast, we find only weak...

This paper empirically investigates whether executive compensation has any impact on the IPO pricing. Corporate governance issues including the CEO's compensation are critical to the firm at the time of the IPO as many firms establish a formal separation of ownership and control for the first...

We examine the extent and evolution of Hubris in a bank CEO, through textual analysis of the CEO letter to the Shareholders. Drawing on new developments in clinical psychology we surface evidence of overconfidence, narcissism and hubris over the 2000-2008 period

This paper analyses the impact of CEO relative compensation on takeover premiums and bidder performance. Based on a sample of takeover deals between Australian listed targets and bidders from 2000 to 2015, we find that there is insignificant difference between bid premiums offered by CEOs who...

This study aims to prove the consistency of Agency Theory and Behavioral Consistency Theory as a solution to explain the role of Earnings Management in mediating the influence of male CEO masculinity on leverage. This research uses a quantitative approach with the population and research samples...

Do employees who compare themselves to the CEO matter for executive compensation? We hypothesize that employees have relative wealth concerns and compare their wage to the CEO's pay. Using German establishment-level wage data, we indeed show that employee wages are increasing in CEO...

Option-based measures of overconfidence are widely used as proxies for overconfidence in corporate finance. Overexposure of a CEO's wealth to the firm's idiosyncratic risk is taken as a sign of CEO overconfidence. The literature has used the measures to study the effect of managerial...

We analyze a sample of 2,914 hiring contracts and show how job security plays a role in pay negotiation. We find a significant impact of job security on CEO pay using both firm and industry-level measures across US firms. In general, CEO candidates and the board members would trade pay for job...