compensation in manager’s portfolio increases, the negative effect of leverage on growth disappears. The paper argues that this is …-commit managers. On addressing the potential endogeneity problem between leverage, growth and compensation the paper finds that option …This paper investigates the potential effects of stock options on managers’ investment decisions and therefore on a …

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 …

offset the negative dilution effect in equilibrium. Leverage is shown to reduce employment and to have a strategic commitment …