Kini, Omesh; Williams, Ryan - In: Journal of Financial Economics 103 (2012) 2, pp. 350-376
This paper tests the proposition that higher tournament incentives will result in greater risk-taking by senior … managers in order to increase their chance of promotion to the rank of CEO. Measuring tournament incentives as the pay gap … tournament incentives. Further, we find that greater tournament incentives lead to higher R&D intensity, firm focus, and leverage …