HR Science Forum
When do high-level managers believe they can influence the stock price? Antecedents of stock price expectancy cognitions
Article first published online: 25 JAN 2010
© 2010 Wiley Periodicals, Inc.
Human Resource Management
Volume 49, Issue 1, pages 23–43, January/February 2010
How to Cite
Dunford, B. B., Boswell, W. R. and Boudreau, J. W. (2010), When do high-level managers believe they can influence the stock price? Antecedents of stock price expectancy cognitions. Hum. Resour. Manage., 49: 23–43. doi: 10.1002/hrm.20332
- Issue published online: 25 JAN 2010
- Article first published online: 25 JAN 2010
- incentive pay;
- employee ownership;
- executive compensation
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 headquarters, firm size, hierarchical level, and contact with investment analysts predicted stock price expectancy perceptions. © 2010 Wiley Periodicals, Inc.