Ethics is a branch of philosophy that can trace its roots back at least 2500 years. Since the time of Socrates, Plato, and Aristotle a succession of theories has been advanced to provide a set of principles of human conduct. As examples, egoism argues that an act is appropriate if and only if it...

We document that CEO cash compensation is twice as sensitive to negative stock returns as it is to positive stock returns. Since stock returns include both unrealized gains and unrealized losses, we expect cash compensation to be less sensitive to stock returns when returns contain unrealized...