AN OVERCONFIDENT CEO VS A RATIONAL BOARD: THE TALE ABOUT BANK RISKTAKING
Financial Economics. FE. Высшая школа экономики , 2019. No. 78/FE/2019.
Сураева А. В., Stepanova A. N.
Bank risk-taking behaviour is of significant interest for researches and policymakers because financial failures due to excessive risk in this sector can have severe consequences for the bank’s numerous stakeholders and for the macroeconomic system overall. A growing literature investigates the main factors contributing to “well above average” risk. In particular, this study explains risk strategies in firms taking into account the bounded rationality of corporate governance agents. On a panel dataset of 110 listed US banks in the period of 2011-2016 empirical evidence is provided that excessive risk-taking in banks arises from the cognitive bias of the overconfidence of CEO decision-making. The study also presents how the impact of an overconfident CEO on risk-taking is affected considering the interaction of CEO overconfidence with the board of directors. It was revealed that the CEO's positive influence on risk is moderated if the board is an effective monitoring mechanism with the presence of independent directors who are experts in the financial sphere.
, Journal of Corporate Finance Research 2019 Vol. 13 No. 2 P. 25-35
This paper aims to discover evidence on the possible impact of CEO overconfidence on payout policy, and the role of corporate boards in offsetting the possible negative effects of this overconfidence. Our investigation demonstrates the effect of overconfidence on the choice of payout method, specifically regarding the repurchases-dividends mix. We also evaluate the ability of ...
Added: October 27, 2019
, , Вестник Санкт-Петербургского университета. Серия 8. Менеджмент 2020 Т. 19 № 1 С. 97-125
The paper aims to explore the characteristics of the dividend policy of Russian companies with state participation and identify its determining factors. Dividend decisions made by the company are largely dependent on the activities of the board of directors, the central corporate govern- ance body, and the liaison between shareholders and managers. The topic is relevant ...
Added: October 31, 2020
, Journal of Corporate Finance Research 2017 Vol. 14 No. 4 P. 67-86
The topic of payout policy significance in terms of value creation has been developing for 50 years already. This development has led to the establishment classic theories that explain different patterns in the companies’ payout policy choices: signaling, agency costs theory, clientele theory and catering theory. However, tests results are not always consistent among different ...
Added: November 30, 2017
Влияние советов директоров на эффективность бизнеса: результаты зарубежных и российских исследований
, Менеджмент и бизнес-администрирование 2011 № 4 С. 104-123
Results of empirical researches of interrelation parameters of activity of boards of directors and of efficiency of the companies are in detail characterized. Features of institute of board of directors in domestic business are considered. ...
Added: December 26, 2012
, Baltic RIM Economies Review 2017 No. 2 P. 37
Trends of corporate governance development in Russian large firms typical for the 2000s are considered. Incentives for improved CG in Russian companies were pushed by regulators and the federal government as owners of big companies. Business was facilitated by their participation in the elaboration of new legal rules, early pre-announced changes, and possibilities for their ...
Added: April 14, 2017
Раскрытие и предоставление информации о конфликте интересов в деятельности совета директоров акционерного общества
, , Хозяйство и право 2016 № 6 С. 19-37
The article deals with the effectiveness of disclosure requirements on the activities of the board of directors of the company, in terms of overcoming asymmetry information, conflict of interests, as well as the protection of investorsʼ rights and interests of the company. ...
Added: December 26, 2016
, Финансы и кредит 2009 № 44 С. 38-45
Статья посвящена изучению зависимости результатов деятельности компаний от различных механизмов корпоративного управления, а также прочих структурных характеристик компании. Автором предложен интегрированный взгляд на проблематику путем внедрения комплексной концепции финансовой архитектуры в модель стратегической эффективности компании. В статье представлены результаты эмпирического исследования 212 европейских и российских компаний. ...
Added: November 24, 2009
, , Russian Management Journal 2021 Vol. 19 No. 1 P. 5-34
The goal of this study is to empirically assess the influence of the board of directors’ work experience diversity on the performance of Russian non-public companies. The board work experience diversity is measured by the diversity index proposed by the authors, as well as by the number of work experience types and categories. Russian boards ...
Added: June 23, 2021
Sell Winners and Buy Losers? The Impact of Familiarity on Individual Investors’ Decision-Making: Experimental Results
, , International Journal of Financial Studies 2021 Vol. 9 No. 3 Article 47
Abstract Purpose: This article analyzes the influence of familiarity bias on respondents’ decision-making process, using results from online experiments. Design/methodology/approach: A total of 255 research participants from post-Soviet countries completed 510 online tests that were presented in the form of investment games. In the games, the respondents were allowed to sell, buy, or hold two types of asset portfolios: ...
Added: September 7, 2021
Влияние гендерного состава совета директоров на результаты деятельности компании: опыт Германии, Австрии и Швейцарии
, , Вестник Московского университета. Серия 6: Экономика 2021 Т. 2 № 2021 (2) С. 140-158
The article examines changes in corporate governance bodies in connection with financial results dynamics of German, Austrian and Swiss companies. The main objective of the study was to trace causal links between financial indicators and boards’ gender composition. The paper used reports of European companies to determine boards’ compositions and financial results. Using a sample of ...
Added: November 25, 2020
, Journal of Corporate Finance Research 2021 Vol. 15 No. 4 P. 88-101
There are innovation creation process, innovations classifications, and measures considered in the paper. Recently focus on the literature moving from innovations relationship with financials to the role of people. This review considers board of directors group characteristics and CEO individual characteristics (the part of which impacts only firms from innovative industries) significant for innovation creation. ...
Added: May 25, 2021
, , СПб.: Отдел оперативной полиграфии НИУ ВШЭ – Санкт-Петербург, 2013
When writing this tutorial, the contributions received by the authors with the assistance of the NTF - National Training Fund subproject "Creating a center of excellence for economics teachers ' Innovation Project Development of education and work , received diplomas Russian competitions intellectual projects " Ideas for Russia " ( 2004) and "Power" (2008 , ...
Added: March 10, 2013
, , Управление экономическими системами: электронный научный журнал 2013 № 12
The article contributes to behavioral financial economics a type of empirical research on possible occasions of animal spirit of confidence for the case of venture capitalists based on analysis of impulse response functions derived from corresponding autoregressions describing reaction of some proxies for investment optimism to their spontaneous shocks. For time series of venture capitalists’ ...
Added: March 28, 2015
, , , Экономическая политика 2016 Т. 11 № 6 С. 36-59
The recent restructuring of the economy has led to the fact that the leaders of information technology sector — Apple, Google, Facebook, Microsoft, Amazon — became the largest companies in the world, replacing the banking and oil and gas sectors. The emergence of a large number of technology start-ups resulted in the increase of the entrepreneurial ownership. Business founders ...
Added: March 15, 2017
, , Управление экономическими системами: электронный научный журнал 2013 № 1
Game-theoretic model of Minsky’s tension is proposed. This model illustrates logic of actions for potential sellers in the context of «animal spirit» of confidence realization and herding behavior for situation when sufficient mass of players has doubts about further market price rise in a period from the end of euphoria until the beginning of panic. ...
Added: March 28, 2015
, , et al., Journal of International Management 2021 Vol. 27 No. 1 Article 100739
Despite the considerable increase in studies on international joint ventures (IJVs) and family business, the two research streams have yet to be systemically integrated. Family firms have unique characteristics that affect their involvement in IJVs differently from their non-family counterparts. Indeed, family firms face a paradox entailing a lower willingness to form IJVs, but a ...
Added: July 2, 2020
, Журнал Новой экономической ассоциации 2011 № 12 С. 10
Game-theoretic model of election to a corporate board of directors is proposed. It is shown that the equilibrium distribution of seats is unique. The uniqueness guarantees nonmanipulability of elections. The distribution is obtained by the d’Hondt method of seats distribution in proportional representation problem. The model is tested on real data from a Russian company. ...
Added: September 29, 2012
Моделирование инвестиционных ожиданий на валютном рынке на основе распределения с функциональным параметром
, Научно-исследовательский финансовый институт. Финансовый журнал 2014 № 1 С. 25-34
В статье рассматривается механизм формирования субъективных ожиданий участников валютного рынка в отношении котировок валютной пары доллар/евро. Предложен метод формализации такого механизма в терминах функции плотности вероятности с функциональным локальным «центром», который отвечает фундаментальным положениям науки о поведенческих финансах. Обе функции — плотности вероятности и локального «центра», зависимого от текущего значения котировок, — получены как решение ...
Added: December 15, 2015
, , , Вопросы статистики 2017 № 9 С. 27-41
Current study focuses on the analysis of the impact of the deposit insurance system on the functioning of national banking system. Literature review reflect the difference in the opinions of analytics about the character of this impact. Summarizing points of view one may conclude that in unstable periods deposit insurance system may strengthen the banking ...
Added: November 23, 2017
, , Вестник Санкт-Петербургского университета. Серия 5. Экономика 2019
The company’s transparency is an important tool in meeting the needs of different stakeholder groups. It is the board of directors that takes the lead in the process of organizing the maximum of the transparency of an enterprise. In order to achieve full transparency, the board should make all necessary disclosures including financial and non-financial ...
Added: March 10, 2019
Boards of Directors in Russian Publicly Traded Companies in 1998-2014: Structure, Dynamics and Performance Effects
, Boards of Directors in Russian Publicly Traded Companies in 1998-2014: Structure, Dynamics and Performance Effects / IZA. Series "IZA Discussion Paper". 2016. No. 10436.
This paper provides new evidence on the structure, dynamics and performance effects of corporate boards in publicly traded companies in Russia. It takes advantage of a new and unique longitudinal dataset of virtually all Russian companies whose shares were traded in the RTS/MICEX/MOEX over 1998-2014. The analysis highlights a number of strong trends in the ...
Added: January 12, 2017
, , Russian Management Journal 2020 Vol. 18 No. 1 P. 29-50
In this paper we apply social network analysis to study the boards of directors of 107 large listed Russian firms between 2009 and 2014. Traditional corporate governance metrics, such as demographic characteristics, experience or multiple directorships, confirm a previously established positive trend towards greater independence and better qualification of the boards of Russian firms. We ...
Added: June 16, 2020
, Корпоративные финансы 2021
In this paper, I study the possibility of modifying the Ohlson model, an alternative way of explaining the dynamics of stock prices of public companies, by adding corporate governance factors that might affect their market value to the model. The purpose of this work is to identify key indicators of corporate governance that affect the ...
Added: August 10, 2020
, , Grade expectations: Rationality and overconfidence / . 2017. No. TI 2017-054/III.
Overconfidence seems to be an essential aspect of human nature, and one way to study overconfidence is to consider students’ forecasts of their exam grades. Part of a student’s grade expectation is based on the student’s previous academic achievements; what remains can be interpreted as (over)confidence. In this paper we study overconfidence using a sample ...
Added: June 25, 2017