Previous literature documents that executives tend to cash out equity incentives when equity-linked compensation vests. Such a behavior destroys long-term incentives and hence is costly to outside shareholders. It is recommended that the unloading of incentives can be limited when the firm...

The corporate governance literature on potential remedies to the agency problem has focused largely on external control mechanisms, especially board independence. We instead consider how an internal, psychological factor – CEO organizational identification – might influence the extent to...