This paper adds to the overconfidence literature by specifically considering the differential nature of information and its use by different classes of investors. The literature suggests that overconfidence is a major determinant of stock trading volume. We postulate that private investors are more prone to overconfidence bias as compared to institutional investors. This implies that turnover i...

This paper analyzes the relationship between leader power and overconfidence in corporate context. Building on psychology research, we postulate that by activating self-serving cognition illusion of control, amount allocated to an organization positively influences probability he/she will exhibit overconfident beliefs. Using various measures both formal symbolic provide corroborating evidence f...

This paper examines the link between CEO pay and performance employing a unique, hand-collected panel data set of 390 UK non-financial firms from the FTSE All Share Index for the period 1999-2005. We include both cash (salary and bonus) and equity-based (stock options and long-term incentive plans) components of CEO compensation in our analysis of a dynamic CEO compensation model. Different fro...

We introduce multiple refinements to the standard method for assessing CEO effects on performance, variance partitioning methodology, more accurately contextualizing CEOs’ contributions. Based on a large 20-year sample, our new ‘CEO in Context’ technique points to a much larger aggregate CEO effect than is obtained from typical approaches. As a validation test, we show that our technique yields...

We investigate the dynamics of the carrier-envelope-offset (CEO) frequency, f(CEO), controlled by a pump current on the self-referencing of an optical frequency comb generated from a diode-pumped solid-state laser at 1.56 μm. We observe a reversal point in the tuning of f(CEO) with the pump current. Between the low- and high-frequency region in the dynamic response of f(CEO) to pump current mod...

We measure the carrier envelope offset (CEO) frequency of the mid-infrared frequency comb (wavelength tunable between 3 and 6 μm) from a doubly resonant nondegenerate synchronously pumped optical parametric oscillator (SPOPO) as a function of the CEO frequency of the Tm-fiber pump laser. We show that the CEO frequency of the SPOPO signal wave is a linear function of the CEO frequency of the pum...

Motivated by concerns that stock-based compensation might lead to excessive risk-taking, this paper examines the relations between CEO incentives and the cost of debt. Unlike prior research, this paper uses the sensitivities of CEO stock and option portfolios to stock price (delta) and stock return volatility (vega) to measure CEO incentives. Higher delta (vega) is predicted to be related to le...

People often exhibit inaccurate metacognitive monitoring. For example, overconfidence occurs when people judge that they will remember more information on a future test then they actually do. The present experiments examined whether a small number of retrieval practice opportunities would improve participants' metacognitive accuracy by reducing overconfidence. Participants studied Lithuanian-En...

We investigate whether overconfidence is affected by superstitious beliefs and whether the effect is heterogeneous according to gender. With this aim, we run a field experiment involving about 700 Italian students. According to widespread superstitions, some numbers are considered lucky while others are thought of as unlucky. In our experiment, we exploited this by randomly assigning students t...

As a direct result of the corporate scandals that started with Enron and led to general unrest in the financial markets, the Securities and Exchange Commission required chief executive officers (CEOs) and chief financial officers of large publicly traded companies to certify their financial statements. Using market signaling theory, we propose that attributes of the CEO send important signals t...