When Do High-Level Managers Believe They Can Influence the Stock Price? Antecedents of Stock Price Expectancy Cognitions

Human Resource Management, Vol. 49, No. 1, pp. 23-43, 2010

23 Pages Posted: 25 Jan 2012

See all articles by Benjamin B. Dunford

Benjamin B. Dunford

Purdue University - Department of Management

Wendy R. Boswell

Texas A&M University - Department of Management

John W. Boudreau

University of Southern California

Date Written: January 1, 2010

Abstract

Stock based rewards are often used to motivate high-level managers to take actions to increase the stock price of the firm. However, numerous constraints may weaken the perceived link between individual effort and stock price appreciation for many recipients. This study introduces a new construct, stock price expectancy, which we define as individuals’ perceptions of influence over their firm’s stock price. We examined its antecedents in a sample of 349 high-level U.S. managers and found that employment at corporate head- quarters, firm size, hierarchical level, and contact with investment analysts predicted stock price expectancy perceptions.

Keywords: motivation, incentive pay, employee ownership, executive compensation

Suggested Citation

Dunford, Benjamin B. and Boswell, Wendy R. and Boudreau, John W., When Do High-Level Managers Believe They Can Influence the Stock Price? Antecedents of Stock Price Expectancy Cognitions (January 1, 2010). Human Resource Management, Vol. 49, No. 1, pp. 23-43, 2010 , Available at SSRN: https://ssrn.com/abstract=1991928

Benjamin B. Dunford (Contact Author)

Purdue University - Department of Management ( email )

West Lafayette, IN 47907-1310
United States

Wendy R. Boswell

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

John W. Boudreau

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

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