Kim, Jeong-Bon; Li, Li; Ma, Mary L. Z.; Song, Frank M. - Hong Kong Institute for Monetary Research (HKIMR), … - 2013
This study predicts and finds that chief executive officer (CEO) risk-taking incentives induced by stock option compensation increase a bank's contribution to systemic distress risk and systemic crash risk. We also predict and find that this CEO incentive systemic risk relation operates through...