Using an experiment, we investigate the joint effects of compensation caps and formal justification requirements on risk-taking. Compensation caps restrict the earnings potential of decision-makers and have been implemented to influence risk-taking behavior, especially after the financial...

This paper investigates whether and how three social-psychological factors − reciprocity, similarity and role experience − affect CEO compensation packages with respect to the levels of total and fixed compensation and the variable proportion of the compensation package. We use evidence from...

This paper investigates whether and how social-psychological mechanisms, namely reciprocity, demographic similarity, and similar experiences, affect CEO compensation packages with respect to the levels of total, fixed, and short- and mid-term compensation and the variable proportion of the...