.88%. Economic uncertainty, coupled with their own inherent risk aversion, motivates managers to be extra cautious during uncertain …We explore the effect of economic policy uncertainty (EPU) on managerial risk-taking incentives. Our analysis shows … that EPU leads to more powerful risk-taking incentives. A rise in EPU by one standard deviation raises vega by 18 …

evidence that CEO duality benefits a firm when economic policy uncertainty is high. This implies that CEO-Chairman duality is … an advantageous governance mechanism for coping with economic policy uncertainty. We show that the Sarbanes-Oxley Act …