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When do high‐level managers believe they can influence the stock price? Antecedents of stock price expectancy cognitions
Author(s) -
Dunford Benjamin B.,
Boswell Wendy R.,
Boudreau John W.
Publication year - 2010
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20332
Subject(s) - expectancy theory , stock price , stock (firearms) , business , perception , cost price , restricted stock , economics , psychology , stock market , management , mechanical engineering , paleontology , horse , neuroscience , series (stratigraphy) , engineering , biology
Stock based rewards are often used to motivate high‐level managers to take actions to increase the stock price of the firm. However, numerous constraints may weaken the perceived link between individual effort and stock price appreciation for many recipients. This study introduces a new construct, stock price expectancy, which we define as individuals' perceptions of influence over their firm's stock price. We examined its antecedents in a sample of 349 high‐level U.S. managers and found that employment at corporate headquarters, firm size, hierarchical level, and contact with investment analysts predicted stock price expectancy perceptions. © 2010 Wiley Periodicals, Inc.