Malmendier & Tate CEO Overconfidence

Variables necessary to replicate Malmendier & Tate Over confidence measures:

Value of Options, option grantdate 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 the option grant date (maybe we use 5th year after person becomes CEO because we haven't found the grant date variable) 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