We argue that incentives to take equity risk ("equity incentives") only partially capture incentives to take asset risk … ("asset incentives"). This is because leverage, while central to the theory of risk shifting, is not explicitly considered by … equity incentives. Employing measures of asset incentives that account for leverage, we find that asset risk …

of poorly governed firms with low AGR scores generates a risk-adjusted return of approximately 5% per year. Most of this …

the staggered introduction of Corporate OpportunityWaivers (COWs) in nine U.S. states since 2000. By reducing legal risk …

same time, industry risk is, accounting for various other factors, unlikely to be associated with CEO compensation other … than through dismissal risk. Using this identification strategy, we document that CEO turnover risk is significantly … positively associated with compensation. This finding is important because job-risk compensating wage differentials arise …