Purpose - The purpose of this study is to present theory and empirical evidence on whether changes in leverage are systematically associated with changes in the CEO's risk incentives over time. Design/methodology/approach - A model is developed to explain the dynamic relationship between...

Purpose – The purpose of this paper is to present a realistic hedging model. Design/methodology/approach – The paper uses a general utility function, general distributions, and a multiple-input technology. Findings – The study finds that the impact of one or both risks on the optimal...

This paper presents a detailed assessment report on the observance of China’s compliance with the International Association of Insurance Supervisor's insurance core principles. The China Insurance Regulatory Commission employs a rules-based framework and has achieved a high level of...

This evaluation examines IDB's management of credit risk of Non-Sovereign Guaranteed Operations. Although the IDB is not subject to the Principles for the Management of Credit Risk issued by the Basel Committee for Banking Supervision, these principles have been used as guidelines for this...

This paper examines the information content of stock option exercises versus regular insider share trades by corporate executives. We argue that the asymmetric payoff structure of options makes managerial wealth - compared to holdings of shares - relatively more sensitive to stock price changes...

Purpose - We investigate the stock option disclosures of directors and the five most highly remunerated officers in the directors' report of Australian companies for the years 2000 and 2002 and the choice to position these disclosures in the notes to the financial statements as opposed to the...

With the increasing importance of stock options as a component of executive compensation , it is important to understand their effectiveness in aligning executive interests with those of shareholders and their function as a retention device. With the collapse of the tech stock bubble in the past...

This paper analyzes the links between corporate tax avoidance, the growth of highpowered incentives for managers, and the structure of corporate governance. We develop and test a simple model that highlights the role of complementarities between tax sheltering and managerial diversion in...

In the debate over executive compensation, the assumption seems to be that the CEO of a publicly traded corporation is ultimately an employee of the corporation. According to the conventional view, the business belongs to the stockholders. Executive compensation is an expense like any other...

The essays in this thesis study stock option schemes and CEO compensation in the publicly listed Finnish firms. The first essay studies the determinants of option scheme adoption. It argues that firms with a higher level of market value per employee are able to provide economic incentives for...