Opening book details…
Can I read The influence of a CEO's prior performance on her risk taking: A prospect theory perspective on EtoBox?
The influence of a CEO's prior performance on her risk taking: A prospect theory perspective by Jiyoon Lee is a Economics, Econometrics and Finance article available to read on EtoBox.
What is The influence of a CEO's prior performance on her risk taking: A prospect theory perspective about?
I investigate how a CEO's prior performance affects her managerial decision making. Controlling for CEO fixed effects and employing reference points, I find that CEOs choose less risky projects after making gains. This result suggests that following good performance, a CEO feels relaxed and prefers to work on safe projects, consistent with an "S"-shaped value function as in prospect theory. The negative relationship between risk and prior performance exists only among CEOs with lower proportions of stock-based compensation. The results suggest overall that CEOs are subject to behavioral biases and that such biases can be mitigated by taking appropriate measures.
Who reads The influence of a CEO's prior performance on her risk taking: A prospect theory perspective?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Jiyoon Lee
- Publisher
- Elsevier BV
- Published
- 2022
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)