aversion, resulting in lower return investment choices. Therefore, we assess whether incentives associated with stock option …Traditional finance theory suggests that riskier investments should yield higher returns. Challenging this notion … compensation (“vega”), presumed to increase managers' appetite for risk, uniformly yield higher returns on R&D investment. Our …

perturbations in preferences induced by common option compensation schemes, and such incentives are weaker when their horizon is … longer. Robust option incentives are possible, but require several arbitrarily large exercise prices, and are not always …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these … due to tax avoidance or evasion, but increase investment in private businesses that are also worthwhile in the absence of …