), vega (wealth-to-volatility sensitivity) of managers' wealth, and the relative size of stock option compensation. For … industry and that the current compensation scheme is not too excessive to lead bank managers to higher level of leverage and …

(the largest shareholder ownership) increases, the managers' incentives become more closely aligned with those of the …, thereafter, decreases. This result can be explained by the agency theory of outside equity. That is, as the insiders ownership … (the largest shareholder ownership) exceeds a certain level, the managers can have their positions more secured and become …