«Volume 23 2009 Page 1-19 The Restructuring of the Saskatchewan Wheat Pool: Overconﬁdence and Agency Murray E. Fulton∗ Kathy A. Larson† ∗ ...»
9. See Brown and Sarma (2007). Roll (1986) was one of the ﬁrst to demonstrate that hubris is responsible for overbidding. Heaton (2002) discusses the interaction of optimism and excess cash on investment decisions. Hayward and Hambrick (1997) conclude that the relationship between CEO hubris and acquisition premium is greater when board vigilance is lacking.
10. The problem is argued to be particularly acute in cooperatives because they lack a publicly traded share that serves as an indicator of ﬁnancial health (Cook 1995; Vitaliano 1983). A test of the agency problem in agricultural cooperatives using the Jensen (1986) framework is presented in Featherstone and Al-Kheraiji (1995) and Hailu (2005).
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