TITLE:
Weakening Effect of Executive Overconfidence on Equity Incentive—The Empirical Evidence from Chinese Listed Companies
AUTHORS:
Sunyu Chen
KEYWORDS:
Executive Overconfidence, Equity Incentives, Risk
JOURNAL NAME:
Open Journal of Business and Management,
Vol.7 No.1,
January
7,
2019
ABSTRACT: The paper takes Chinese listed companies from 2010 to 2016 as samples, to examine the relationship between executive overconfidence and equity incen-tive. Results show that executive overconfidence has a significant weakening effect on equity compensation incentives (including stock options and re-stricted stocks), that is, compared with rational executives, the company will reduce the equity incentives for overconfident executives.