Malmendier & Tate CEO Overconfidence
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Variables necessary to replicate Malmendier & Tate Over confidence measures:
Value of Options, year in which option was exercised, mean stock price in year of exercise, median stock price in year of exercise, high stock price in year of exercise,
- Malmendier & Tate use the 5th year after a person becomes CEO because across various packages it is the first year in which at least part of the option packages in the sample are exercisable.
- 67% In the money appears to mean that the market price has appreciated 67% from the five years since
