This paper investigates the potential effects of stock options on managers’ investment decisions and therefore on a … compensation in manager’s portfolio increases, the negative effect of leverage on growth disappears. The paper argues that this is … an important finding, because it implies that when managers are compensated with options debt ceases to pre …

sample that tracks job movement of top managers, we find that managerial style is a critical factor that explains a large … firm performance and corporate decisions, implying that certain managers achieve better firm performance via lower cost of … capital and other desirable non-price loan terms. We further find direct evidence that banks “follow” managers’ job changes …