compensation of managers switching between firms with different SPI …

earnings. When stock-based compensation motivates managers to share their private information with shareholders, it will … expedite the pricing of future earnings in current stock prices. In contrast, when equity-compensated managers attempt to …

employed as a way of asset appropriation at the managers' discretion. The results also confirm that corporate governance is …

, generally implicit assumption that managers cannot undo their incentive packages, (ii) the standard modeling practice of … motives in managers' portfolio choices. …

We address two apparent paradoxes of risk management: (1) managers hedge in order to avoid negative earnings surprises …, yet they tend to hedge risks uninformative of the value of the company; and (2) the presence of options in managers … informational asymmetry between insiders (managers) and outsiders (investors). Investors derive information about company value from …

operations and as the firm approaches financial distress, the paper proposes a new compensation mechanism for senior managers … valuation discount. This will give managers an incentive to curb excessive risk-taking and in particular to steer the firm away …