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We investigate the risk choices of risk averse CEOs. Following recent theoretical work, we expect CEO risk aversion to be more pronounced in firms with high leverage, or high default probability. We find that the CEOs of these firms reduce firm risk, even in the presence of strong risk taking...
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. Vega does not capture risk-taking incentives from managers' stock and debt holdings and does not reflect the fact that … measure explains risk choices better than vega and the relative measures, and should be useful for future research on managers …
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We present a general-equilibrium theory of contracting in which managers are concerned about their social standing in a …
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