Managers often have foreknowledge of events that can increase future firm risks. In this study, I examine whether … managers alter their personal portfolios based on their foreknowledge. Specifically, I examine whether managers expedite or … managers to delay their option exercises. On the other hand, higher volatility also increases the likelihood of large declines …

extra risk in equity stakes born by risk-averse managers. We confirm our conjecture by using lagged stock return volatility …