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We present a model in which managers are risk-averse and firms compete for scarce managerial talent ("alpha"). When …-insurance among employees. In anticipation, risk-averse managers may churn across firms or undertake aggregate risks in order to delay … the revelation of their true quality. The result is excessive risk-taking with pay for short-term performance and an …
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We present a model where firms compete for scarce managerial talent ("alpha") and managers are risk-averse. When …
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We present a model where firms compete for scarce managerial talent ("alpha") and managers are risk-averse. When …
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bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater … performance. In countries with strong creditor rights, firms also have lower cash flow risk and lower leverage, and there is …
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