The article by Professor of the School of Finance Irina Ivashkovskaya and Associate Professor of the School of Finance Artem Anilov has been published in Finance Research Letters.

A paper by our colleagues Irina Ivashkovskaya and Artem Anilov titled "On compensation incentives, managerial overconfidence, and payout policy" has been published in the journal Finance Research Letters.

In the article, the authors show that CEO compensation, together with managerial overconfidence, influences corporate payout policy. For example, compensation in the form of company stock reduces dividend payouts in firms with overconfident CEOs, whereas compensation in the form of inside debt increases payouts in such firms. However, these results do not hold for companies in innovative industries or those with weak corporate governance. These findings support theoretical models that predicted a negative impact of high convex compensation for overconfident CEOs on shareholder welfare. 

Read the full text at https://www.sciencedirect.com/science/article/pii/S154461232501219X