Managerial Overconfidence and Compensation: Evidence from Hose-Listed Companies
Managerial Overconfidence and Compensation: Evidence from Hose-Listed Companies
Author(s): Quang Thong Truong, Thi Thuy Linh Nguyen, Minh Lam TranSubject(s): Economy, National Economy, Business Economy / Management
Published by: ASERS Publishing
Keywords: CEO; compensation; overconfidence; GMM technique;
Summary/Abstract: This research investigates the impact of managerial overconfidence on CEO compensation. The data include 143 non-financial companies listed on Ho Chi Minh City Stock Exchange (HoSE), Vietnam with 858 observations in a six-year period from 2012 through 2017. By employing GMM (Generalized Method of Moments) technique to take account of endogeneity, the results show a significant and positive relationship between managerial overconfidence and cash-based compensation. However, we find no evidence of the linkage between overconfidence and equity-based compensation.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XIV/2019
- Issue No: 64
- Page Range: 515-524
- Page Count: 10
- Language: English