incentives of US managers to adopt riskier business policies. Specifically, based on the agency problems between shareholders and … managers and between shareholders and creditors, a research framework is developed to identify the influence of low interest … rates on managers’ risk-taking incentives proxied by the sensitivity of executive compensation to stock return volatility …

This paper incorporates low interest rates into a framework of Post-Keynesian theory of the firm under financialisation … where shareholder value orientation (SVO) tightens the finance constraint on growth-maximising managers. In contrast, when …