Cassell, Cory A.; Huang, Shawn X.; Manuel Sanchez, Juan; … - In: Journal of Financial Economics 103 (2012) 3, pp. 588-610
CEO inside debt holdings (pension benefits and deferred compensation) are generally unsecured and unfunded liabilities … of the firm. Because these characteristics of inside debt expose the CEO to default risk similar to that faced by outside … creditors, theory predicts that CEOs with large inside debt holdings will display lower levels of risk-seeking behavior (Jensen …