KAPLANSKI, GUY; LEVY, HAIM - In: Annals of Financial Economics (AFE) 07 (2012) 01, pp. 1250003-1
In 23 out of 26 US industries, the annual CEO bonus is larger than the annual salary, suggesting that the bonus strongly affects the CEO's decisions. As the high leverage of financial institutions is often blamed for the 2008 financial crises, in this study we focus on leverage as a factor...