Conventional wisdom suggests that CEO membership of the compensation committee is an open invitation to rent extraction by self-serving executives. However, using data from New Zealand – where CEO compensation committee membership is relatively common – we find that annual pay increments for CEOs with this apparent advantage averaged six percentage points less than those enjoyed by other CEOs d...

We show that firms with chief executive officers (CEOs) who gain general managerial skills over their lifetime work experience invest more in R&D and produce more patents. We address the potential endogenous CEO-firm matching bias using firmand CEOfixed effects and variation in the enforceability of non-compete agreements across states and over time during the CEO’s career. Our findings suggest...

Empirical evidence is scarce on chief executive officer (CEO) turnover in U.S. hospitals, with potentially serious implications for many of these organizations. This study, based on a nationwide survey of CEOs at non-federal general surgical and medical community hospitals conducted in the spring of 2004, reports the perceptions of hospital CEOs regarding the circumstances and impact of CEO tur...

Research Summary In corporate acquisitions, overconfident chief executive officers (CEOs) often make biased decisions, subsequently paying unjustifiably high acquisition premiums. We investigate the predeal process in which premium is decided upon and, drawing from procedural rationality theory, argue that pursuit of greater through slow-paced processes reduces tendency CEOs to inflate The empi...

In our daily lives, we make a wide variety of decisions. One major distinction that has been made is between perceptual decisions and value-based (economic) We argue this ill-defined, because these vary on multiple dimensions. present an alternative way to categorize decisions, based two dimensions: subjective versus objective criteria, evaluation stimulus representation. experimentally study t...

Fast-moving sports such as tennis require both players and match officials to make rapid accurate perceptual decisions about dynamic events in the visual world. Disagreements arise regularly, leading to disputes about decisions such as line calls. A number of factors must contribute to these disputes, including lapses in concentration, bias and gamesmanship. Fundamental uncertainty or variabili...

Executives can only impact firm outcomes if they have influence over crucial decisions. Based on this idea we develop and test the hypothesis that firms whose CEOs have more decision-making power should experience more variability in performance. Focusing primarily on the power the CEO has over the board and other top executives as a consequence of his formal position and titles, status as a fo...