The Role of Affect in Shaping the Behavioral Consequences of CEO Option Incentives

Abstract

We advance behavioral agency theory by exploring the influence of mood or “affect” on the behavioral consequences of stock option incentives. Drawing on insights from psychology and behavioral decision theory, we describe how affect influences agent risk behavior. We argue that positive affect amplifies both the extent to which executives reduce strategic risk taking in response to risk bearing and engage in strategic risk taking in response to incentives for further enrichment. Building again on the psychology literature, we describe how CEO accountability attenuates the influence of affect on CEO risk behavior in response to stock option incentives. We test our expectations in a longitudinal data set of CEO stock option incentives, affect, and strategic risk taking by U.S. firms.

Keywords

agency theory executive compensation strategic decision making affect

Get full access to this article

View all access options for this article.

References

Alam

Z. S.

Chen

M. A.

Ciccotello

C. S.

Ryan

H. E.

2014. Does the location of directors matter? Information acquisition and board decisions. Journal of Financial and Quantitative Analysis, 49: 131-164.

Allison

P. D.

2005. Fixed effects regression methods for longitudinal data using SAS. Cary, NC: SAS Institute.

Arkes

H. R.

Herren

L. T

Isen

A. M.

1988. The role of potential loss in the influence of affect on risk-taking behavior. Organizational Behavior and Human Decision Processes, 42: 181-193.

Baddeley

A. D.

1990. Human memory. Boston: Allyn and Bacon.

Bamber

Jiang

Wang

2010. What’s my style? The influence of top managers on voluntary corporate financial disclosure. Accounting Review, 85: 1131-1162.

Bardolet

Fox

C. R.

Lovallo

2011. Corporate capital allocation: A behavioral perspective. Strategic Management Journal, 32: 1465-1483.

Baron

R. A.

2008. The role of affect in the entrepreneurial process. Academy of Management Review, 33: 328-340.

Bassi

Colacito

Fulghieri

2013. O sole mio: An experimental analysis of weather and risk attitudes in financial decisions. Review of Financial Studies, 26: 1824-1852.

Beatty

R. P.

Zajac

E. J.

1994. Managerial incentives, monitoring, and risk bearing: A study of executive compensation, ownership, and board structure in initial public offerings. Administrative Science Quarterly, 39: 313-335.

10.

Bergstresser

Desai

Rauh

2006. Earnings manipulation, pension assumptions, and managerial investment decisions. Quarterly Journal of Economics, 12: 157-195.

11.

Black

Scholes

1973. The pricing of options and corporate liabilities. Journal of Political Economy, 81: 637-654.

12.

Bliese

P. D.

2000. Within-group agreement, non-independence, and reliability: Implications for data aggregation and analyses. In Klein

K. J.

Kozlowski

S. W. J.

(Eds.), Multilevel theory, research, and methods in organization: 349-381. San Francisco: Jossey-Bass.

13.

Bodenhausen

G. V.

Kramer

G. P

Suesser

1994. Happiness and stereotypic thinking in social judgment. Journal of Personality and Social Psychology, 66: 621-632.

14.

Boyd

B. K.

Solarino

A. M.

2016. Ownership of corporations: A review, synthesis, and research agenda. Journal of Management, 42: 1282-1314.

15.

Bromiley

2010. Looking at prospect theory. Strategic Management Journal, 31: 1357-1370.

16.

Bushee

B. J.

1998. The influence of institutional investors on myopic R&D investment behavior. Accounting Review, 73: 305-333.

17.

Certo

S. T.

Semadeni

2006. Strategy research and panel data: Evidence and implications. Journal of Management, 32: 449-474.

18.

Certo

S. T.

Withers

Semadeni

2017. A tale of two effects: Using longitudinal data to compare within- and between-firm effects. Strategic Management Journal, 38: 1536-1556.

19.

Chatterjee

Hambrick

D. C.

2007. It’s all about me: Narcissistic chief executive officers and their effects on company strategy and performance. Administrative Science Quarterly, 52: 351-386.

20.

Chatterjee

Hambrick

D. C.

2011. Executive personality, capability cues, and risk taking: How narcissistic CEOs react to their successes and stumbles. Administrative Science Quarterly, 56: 202-237.

21.

Clore

G. L

Schwarz

Conway

1993. Affective causes and consequences of social information processing. In Wyer

R. S.

Srull

T. K.

(Eds.), Handbook of social cognition: 324-404. Hillsdale, NJ: Lawrence Erlbaum.

22.

Coffee

J. C.

Jr.

1988. Shareholders versus managers: The strain in the corporate web. In Coffee

J. C.

Loewenstein

Rose-Ackerman

(Eds.), Knights, raiders, and targets: The impact of the hostile take-over: 77-134. New York: Oxford University Press.

23.

Cohen

2011. The photosynthetic president: Converting sunshine into popularity. Social Science Journal, 48: 295-304.

24.

Connelly

B. L.

Tihanyi

Certo

S. T

Hitt

M. A.

2010. Marching to the beat of different drummers: The influence of institutional owners on competitive actions. Academy of Management Journal, 53: 723-742.

25.

Connelly

B. L.

Tihanyi

Ketchen

D. J.

Carnes

C. M.

Ferrier

W. J.

2017. Competitive repertoire complexity: Governance antecedents and performance outcomes. Strategic Management Journal, 38: 1151-1173.

26.

Core

Guay

W. R.

1999. The use of equity grants to manage optimal equity incentive levels. Journal of Accounting & Economics, 28: 151-184.

27.

Core

J. E.

Guay

W. R.

2002. Estimating the value of stock option portfolios and their sensitivities to price volatility. Journal of Accounting Research, 3: 613-630.

28.

Cremers

K. J. M.

Nair

V. B.

John

2009. Takeovers and the cross-section of returns. Review of Financial Studies, 22: 1409-1445.

29.

Crossland

Hambrick

D. C.

2011. Differences in managerial discretion across countries: How nation-level institutions affect the degree to which CEOs matter. Strategic Management Journal, 32: 797-819.

30.

Cunningham

M. R.

1979. Weather, mood, and helping behavior: Quasi experiments with the Sunshine Samaritan. Journal of Personality and Social Psychology, 37: 1947-1956.

31.

Cycyota

C. S.

Harrison

D. A.

2006. What (not) to expect when surveying executives: A meta-analysis of top manager response rates and techniques over time. Organizational Research Methods, 9: 133-160.

32.

Dahl

M. S.

Dezső

C. L.

Ross

D. G.

2012. Fatherhood and managerial style: How a male CEO’s children affect the wages of his employees. Administrative Science Quarterly, 57: 669-693.

33.

Devers

C. E.

McNamara

Wiseman

R. M.

Arrfelt

2008. Moving closer to the action: Examining compensation design effects on firm risk. Organization Science, 19: 548-566.

34.

Eich

1995. Searching for mood dependent memory. Psychological Science, 16: 67-75.

35.

Epstein

1994. Integration of the cognitive and the psychodynamic unconscious. American Psychologist, 49: 709-724.

36.

Fama

1980. Agency problems and the theory of the firm. Journal of Political Economy, 88: 288-307.

37.

Forgas

J. P.

1995. Mood and judgment: The affect infusion model (AIM). Psychological Bulletin, 117: 39-66.

38.

Forgas

J. P.

2000. Feeling and thinking: Affective influences on social cognition. New York: Cambridge University Press.

39.

Forgas

J. P.

George

J. M.

2001. Affective influences on judgments and behavior in organizations: An information processing perspective. Organizational Behavior and Human Decision Processes, 86: 3-34.

40.

Frijda

N. H.

1988. The laws of emotion. American Psychologist, 43: 349-358.

41.

Gao

2010. Optimal compensation contracts when managers can hedge. Journal of Financial Economics, 97: 218-238.

42.

Garcia

Norli

. 2012. Geographic dispersion and stock returns. Journal of Financial Economics, 106: 547-565.

43.

Garcia-Marques

Mackie

D. M.

Claypool

H. M.

Garcia Marques

2004. Positivity can cue familiarity. Personality and Social Psychology Bulletin, 30: 585-593.

44.

George

J. M.

Brief

A. P.

1996. Motivational agendas in the workplace: The effects of feelings on focus of attention and work motivation. Research in Organizational Behavior, 18: 75-109.

45.

Gerhart

Rynes

2003. Compensation: Theory, evidence, and strategic implications. Thousand Oaks, CA: Sage.

46.

Gerstner

W.-C.

König

Enders

Hambrick

D. C.

2013. CEO narcissism, audience engagement, and organizational adoption of technological discontinuities. Administrative Science Quarterly, 58: 257-291.

47.

Gillan

S. L.

Starks

L. T.

2000. Corporate governance proposals and shareholder activism: The role of institutional investors. Journal of Financial Economics, 57: 275-305.

48.

Goetzmann

W. N.

Kim

Kumar

Wang

2015. Weather-induced mood, institutional investors, and stock returns. Review of Financial Studies, 28: 73-111.

49.

Golder

S. A.

Macy

M. W.

2011. Diurnal and seasonal mood vary with work, sleep, and daylength across diverse cultures. Science, 333: 1878-1881.

50.

Gómez-Mejía

L. R.

Neacsu

Martin

in press. CEO risk-taking and socioemotional wealth: The behavioral agency model, family control, and CEO option wealth. Journal of Management.

51.

Gómez-Mejía

L. R.

Nunez-Nickel

Gutierrez

2001. The role of family ties in agency contracts. Academy of Management Journal, 44: 81-95.

52.

Gómez-Mejía

L. R.

Takacs-Haynes

Nunez-Nuckel

Jaconson

K. J. L.

Moyano-Fuentes

2007. Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52: 106-137.

53.

Graffin

S. D.

Boivie

Carpenter

M. A.

2013. Examining CEO succession and the role of heuristics in early-stage CEO evaluation. Strategic Management Journal, 34: 383-403.

54.

Greve

H. R.

2008. A behavioral theory of firm growth: Sequential attention to size and performance goals. Academy of Management Journal, 51: 476-494.

55.

Halaby

C. N.

2004. Panel models in sociological research: Theory into practice. Annual Review of Sociology, 30: 507-544.

56.

Hambrick

D. C.

Mason

P. A.

1984. Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9: 193-206.

57.

Han

Lerner

J. S.

Keltner

2007. Feelings and consumer decision making: The appraisal-tendency framework. Journal of Consumer Psychology, 17: 158-168.

58.

Hansen

L. P.

1982. Large sample properties of generalized method of moments estimators. Econometrica, 50: 1029-1054.

59.

Hausman

J. A.

1978. Specification tests in econometrics. Econometrica, 46: 1251-1271.

60.

Haynes

Campbell

Hitt

2017. When more is not enough. Journal of Management, 43: 555-584.

61.

Hayward

M. L.

Hambrick

D. C.

1997. Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42: 103-127.

62.

Hirshleifer

Shumway

2003. Good day sunshine: Stock returns and the weather. Journal of Finance, 58: 1009-1032.

63.

Hölmstrom

1979. Moral hazard and observability. Bell Journal of Economics, 10: 74-91.

64.

Hoskisson

R. E.

Hitt

M. A.

Hill

C. W.

1993. Managerial incentives and investment in R&D in large multiproduct firms. Organization Science, 4: 325-341.

65.

Howarth

Hoffman

M. S.

1984. A multidimensional approach to the relationship between mood and weather. British Journal of Psychology, 75: 15-23.

66.

Huddart

Lang

1996. Employee stock option exercises: An empirical analysis. Journal of Accounting & Economics, 21: 5-43.

67.

Husted

B. W.

Jamali

Saffar

2016. Near and dear? The role of location in CSR engagement. Strategic Management Journal, 37: 2050-2070.

68.

Ichimura

1993. Semiparametric least squares (SLS) and weighted SLS estimation of single-index models. Journal of Econometrics, 58: 71-120.

69.

Isen

A. M.

2008. Some ways in which positive affect influences decision making and problem solving. Handbook of Emotions, 3: 548-573.

70.

Isen

A. M.

Geva

1987. The influence of positive affect on acceptable level of risk: The person with a large canoe has a large worry. Organizational Behavior and Human Decision Processes, 39: 145-154.

71.

Isen

A. M.

Nygren

T. E.

Ashby

F. G.

1988. Influence of positive affect on the subjective utility of gains and losses: It is just not worth the risk. Journal of Personality and Social Psychology, 55: 710-717.

72.

Isen

A. M.

Patrick

1983. The effect of positive feelings on risk taking: When the chips are down. Organizational Behavior and Human Performance, 31: 194-202.

73.

Jensen

M. C.

Meckling

W. H.

1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3: 305-360.

74.

Johnson

E. J.

Tversky

1983. Affect, generalization, and the perception of risk. Journal of Personality and Social Psychology, 45: 20-31.

75.

Kahneman

2002. Maps of bounded rationality: A perspective on intuitive judgment and choice. Nobel Prize Lecture, 8: 449-489.

76.

Kahneman

Tversky

1979. Prospect theory: An analysis of decision under risk. Econometrica, 47: 263-292.

77.

Keller

P. A.

Lipkus

I. M.

Rimer

B. K.

2002. Depressive realism and health risk accuracy: The negative consequences of positive mood. Journal of Consumer Research, 29: 57-69.

78.

Kish-Gephart

J. J.

Campbell

J. T.

2015. You don’t forget your roots: The influence of CEO social class background on strategic risk taking. Academy of Management Journal, 58: 1614-1636.

79.

Koopman

Lanaj

Scott

B. A.

2016. Integrating the bright and dark sides of OCB: A daily investigation of the benefits and costs of helping others. Academy of Management Journal, 59: 414-435.

80.

Kraiger

Billings

R. S.

Isen

A. M.

1989. The influence of positive affective states on task perceptions and satisfaction. Organizational Behavior and Human Decision Processes, 44: 12-25.

81.

Kramer

L. A.

Weber

J. M.

2012. This is your portfolio on winter: Seasonal affective disorder and risk aversion in financial decision making. Social Psychological and Personality Science, 3: 193-199.

82.

Krönmal

R. A.

1993. Spurious correlations and the fallacy of the ratio standard revised. Journal of the Royal Statistical Society, 156: 379-392.

83.

Krönmal

R. A.

1995. Author’s reply. Journal of the Royal Statistical Society, 158: 623-625.

84.

Larraza-Kintana

Wiseman

Gómez-Mejía

L. R.

Welbourne

2007. Distinguishing between employment and compensation risk influences on perceived risk taking. Strategic Management Journal, 28: 1001-1019.

85.

Leppämäki

Partonen

Lönnqvist

2002. Bright-light exposure combined with physical exercise elevates mood. Journal of Affective Disorders, 72: 139-144.

86.

Lerner

J. S.

Goldberg

J. H.

Tetlock

P. E.

1998. Sober second thought: The effects of accountability, anger and authoritarianism on attributions of responsibility. Personality and Social Psychology Bulletin, 24: 563-574.

87.

Lerner

Tetlock

1999. Accounting for the effects of accountability. Psychological Bulletin, 125: 255-275.

88.

Luo

Zhang

Wang

in press. Sunny, rainy, and cloudy with a chance of mobile promotion effectiveness. Marketing Science.

89.

Lim

E. N.

McCann

B. T.

2013. The influence of relative values of outside director stock options on firm strategic risk from a multi-agent perspective. Strategic Management Journal, 34: 1568-1590.

90.

Mannor

M. J.

Wowak

A. J.

Bartkus

V. O.

Gómez-Mejía

L. R.

2015. Heavy lies the crown? How job anxiety affects top executive decision making in gain and loss contexts. Strategic Management Journal, 37: 1968-1989.

91.

Marquis

Lounsbury

2007. Vive la resistance: Competing logics and the consolidation of US community banking. Academy of Management Journal, 50: 799-820.

92.

Martin

G. P.

Gómez-Mejía

L. R.

Wiseman

R. M.

2013. Executive stock options as mixed gambles: Revisiting the behavioral agency model. Academy of Management Journal, 56: 451-472.

93.

Martin

G. P.

Wiseman

R. M.

Gómez-Mejía

L. R.

2016. Going short-term or long-term? CEO stock options and temporal orientation in the presence of slack. Strategic Management Journal, 37: 2463-2480.

94.

Miller

K. D.

Bromiley

1990. Strategic risk and corporate performance: An analysis of alternative risk measures. Academy of Management Journal, 33: 756-779.

95.

Mittal

Ross

W. T.

1998. The impact of positive and negative affect and issue framing on issue interpretation and risk taking. Organizational Behavior and Human Decision Processes, 76: 298-324.

96.

Murphy

K. J.

1999. Executive compensation. Handbook of Labor Economics, 3: 2485-2563.

97.

Nadkarni

Herrmann

2010. CEO personality, strategic flexibility, and firm performance: The case of the Indian business process outsourcing industry. Academy of Management Journal, 53: 1050-1073.

98.

Nygren

T. E.

Isen

A. M.

Taylor

P. J.

Dulin

1996. The influence of positive affect on the decision rule in risk situations: Focus on outcome (and especially avoidance of loss) rather than probability. Organizational Behavior and Human Decision Processes, 66: 59-72.

99.

O’Brien

2007. A caution regarding rules of thumb for variance inflation factors. Quality & Quantity: International Journal of Methodology, 41: 673-690.

100.

A. Y.

Tsui

A. S.

Kinicki

A. J.

Waldman

D. A

Xiao

Song

L. J.

2014. Humble chief executive officers’ connections to top management team integration and middle managers’ responses. Administrative Science Quarterly, 59: 34-72.

101.

Park

S. H.

Westphal

J. D.

Stern

2011. Set up for a fall: The insidious effects of flattery and opinion conformity toward corporate leaders. Administrative Science Quarterly, 56: 257-302.

102.

Parrott

W. G.

Sabini

1990. Mood and memory under natural conditions: Evidence from mood incongruent recall. Journal of Personality and Social Psychology, 59: 321-336.

103.

Patel

P. C.

Cooper

2014. The harder they fall, the faster they rise: Approach and avoidance focus in narcissistic CEOs. Strategic Management Journal, 35: 1528-1540.

104.

Pe’er

Gottschalg

2011. Red and blue: The relationship between the institutional context and the performance of leveraged buyout investments. Strategic Management Journal, 32: 1356-1367.

105.

Persinger

M. A.

Levesque

1983. Geophysical variables and behavior: XII. The weather matrix accommodates large portions of variance of measured daily mood. Perceptual and Motor Skills, 57: 868-870.

106.

Porter

M. E.

1992. Capital choices: Changing the way America invests in industry. Boston: Harvard Business School.

107.

Rajan

R. G.

Wulf

2006. Are perks purely managerial excess? Journal of Financial Economics, 79: 1-33.

108.

Rajan

R. G.

Zingales

1998. Financial dependence and growth. American Economic Review, 88: 559-586.

109.

Reid

E. M.

Toffel

M. W.

2009. Responding to public and private politics: Corporate disclosure of climate change strategies. Strategic Management Journal, 30: 1157-1178.

110.

Rind

1996. Effect of beliefs about weather conditions on tipping. Journal of Applied Social Psychology, 26: 137-147.

111.

Rosenthal

N. E.

Sack

D. A.

Gillan

J. C.

Lewy

A. J.

Goodwin

F. K.

Davenport

Mueller

P. S.

Newsome

D. A.

Wehr

T. A.

1984. Seasonal affective disorder: A description of the syndrome and preliminary findings with light therapy. Archives of General Psychiatry, 41: 72-80.

112.

Rothbard

N. P.

Wilk

S. L.

2011. Waking up on the right or wrong side of the bed: Start-of-workday mood, work events, employee affect, and performance. Academy of Management Journal, 54: 959-980.

113.

Sanders

W. G.

2001. Behavioral responses of CEOs to stock ownership and stock option pay. Academy of Management Journal, 44: 477-492.

114.

Sanders

W. G.

Hambrick

2007. Swinging for the fences: The effects of CEO stock options on company risk taking and performance. Academy of Management Journal, 50: 1055-1078.

115.

Saunders

E. M.

1993. Stock prices and Wall Street weather. American Economic Review, 83: 1337-1345.

116.

Schkade

D. A.

Kahneman

1998. Does living in California make people happy? A focusing illusion in judgements of life satisfaction. Psychological Science, 9: 340-346.

117.

Schwarz

2011. Feelings-as-information theory. In Van Lange

P. A. M.

Kruglanski

Higgins

E. T.

(Eds.), Handbook of theories of social psychology: 289-308. Thousand Oaks, CA: Sage.

118.

Schwarz

Clore

G. L.

1983. Mood, misattribution, and judgments of well-being: Informative and directive functions of affective states. Journal of Personality and Social Psychology, 45: 513-523.

119.

Seo

M.-G.

Goldfarb

Barrett

L. F.

2010. Affect and the framing effect within individuals over time: Risk taking in a dynamic investment simulation. Academy of Management Journal, 53: 411-431.

120.

Shi

Connelly

B. L.

Hoskisson

R. E.

2017. External corporate governance and financial fraud: Cognitive evaluation theory insights on agency theory prescriptions. Strategic Management Journal, 38: 1268-1286.

121.

Shi

Hoskisson

R. E.

Zhang

Y. A.

2017. Independent director death and CEO acquisitiveness: Build an empire or pursue a quiet life? Strategic Management Journal, 38: 780-792.

122.

Simsek

Heavey

Veiga

J. J. F.

2010. The impact of CEO core self-evaluation on the firm’s entrepreneurial orientation. Strategic Management Journal, 31: 110-119.

123.

Sitkin

S. B.

Pablo

A. L.

1992. Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17: 9-38.

124.

Slovic

Finucane

Peters

MacGregor

D. G.

2002. The affect heuristic. In Gilovich

Griffin

Kahneman

(Eds.), Heuristics and biases: 397-420. Cambridge, UK: Cambridge University Press.

125.

Staw

B. M.

Barsade

S. G.

1993. Affect and managerial performance: A test of the sadder-but-wiser vs. happier-and-smarter hypotheses. Administrative Science Quarterly, 38: 304-331.

126.

Staw

B. M.

Sutton

R. I.

Pelled

L. H.

1994. Employee positive emotion and favorable outcomes at the work place. Organizational Science, 5: 51-71.

127.

Stock

J. H.

Wright

J. H.

Yogo

2002. A survey of weak instruments and weak identification in generalized method of moments. Journal of Business & Economic Statistics, 20: 518-529.

128.

Tetlock

P. E.

1985. Accountability: A social check on the fundamental attribution error. Social Psychology Quarterly, 48: 227-236.

129.

Tetlock

P. E.

Kim

J. I.

1987. Accountability and judgment processes in a personality prediction task. Journal of Personality and Social Psychology, 52: 700-709.

130.

Tihanyi

Johnson

R. A.

Hoskisson

R. E.

Hitt

M. A.

2003. Institutional ownership differences and international diversification: The effects of boards of directors and technological opportunity. Academy of Management Journal, 46: 195-211.

131.

Tilcsik

Marquis

2013. Punctuated generosity: How mega-events and disasters affect corporate philanthropy in U.S. communities. Administrative Science Quarterly, 58: 111-148.

132.

Townsend

Campbell

2004. Psychological determinants of willingness to taste and purchase genetically modified food. Risk Analysis, 24: 1385-1393.

133.

Washburn

Bromiley

2014. Managers and analysts: An examination of mutual influence. Academy of Management Journal, 57: 849-863.

134.

Watson

Tellegen

1985. Toward a consensual structure of mood. Psychological Bulletin, 98: 219-235.

135.

Wegener

D. T.

Petty

R. E

Smith

S. M.

1995. Positive mood can increase or decrease message scrutiny: The hedonic contingency view of mood and message processing. Journal of Personality and Social Psychology, 69: 5-15.

136.

Weiss

H. M.

Nicholas

J. P.

Daus

C. S.

1999. An examination of the joint effects of affective experiences and job beliefs on job satisfaction and variations in affective experiences over time. Organizational Behavior and Human Decision Processes, 78: 1-24.

137.

Westphal

J. D.

Zajac

E. J.

2013. A behavioral theory of corporate governance. Academy of Management Annals, 7: 607-661.

138.

Wiseman

R. M.

2009. On the use and misuse of ratio measures. In Bergh

Ketchen

(Eds.), Research methodology in strategic management: 75-110. Bingley, UK: Emerald.

139.

Wiseman

R. M.

Cuevas-Rodriguez

Gómez-Mejía

L. R.

2012. Towards a social theory of agency. Journal of Management Studies, 49: 202-222.

140.

Wiseman

R. M.

Gómez-Mejía

L. R.

1998. A behavioral agency model of managerial risk taking. Academy of Management Review, 22: 133-153.

141.

Wooldridge

J. M.

2010. Econometric analysis of cross section and panel data. Cambridge, MA: MIT Press.

142.

Yermack

2014. Tailspotting: Identifying and profiting from CEO vacation trips. Journal of Financial Economics, 113: 252-269.