Open AccessImpact of the characteristics of CEO's overconfidence on the determination of incentive compensation
Author(s) -
Hanen Lenda,
Abdelfettah Bouri
Publication year - 2016
Publication title -
international journal of accounting and economics studies
Language(s) - English
Resource type - Journals
ISSN - 2309-4508
DOI - 10.14419/ijaes.v4i2.6762
Subject(s) - overconfidence effect , incentive , compensation (psychology) , sample (material) , executive compensation , demographic economics , economics , business , psychology , microeconomics , social psychology , chemistry , chromatography
The aim of this article is to examine the impact of the characteristics of overconfident CEO's on determining incentive compensation. The sample consists of 100 US non-financial companies in the S&P 500. The model estimation results, during the period from 2000 to 2010, showed that overconfident executives have a significant negative impact on his incentive compensation. Furthermore, the results of multiple linear regression showed that experienced, and older CEO has a significant and positive impact on the level of incentive compensation.