convexity results in a 21% increase in a firm's crash risk after controlling for managerial price-increasing incentives. In … positive jump risk. We exploit an exogenous shock to compensation convexity, arising from a change in the expensing treatment … suggest that managerial equity compensation portfolios do not augment a firm's future idiosyncratic crash risk because they …

future stock risk and returns for a large sample of firms between 1992 and 2004. On average, both higher PPS and higher Vega … are associated with lower future stock returns. Part of this negative relation may be due to a reduction in risk induced … by risk-averse managers responding to increases in the sensitivity of their wealth to equity value. Confirming this …

risk of a sector that is caused not by a direct change in that sector but by a change in another sector that affects the … composition of the stock market. In the paper we investigate the pre and during crisis market risk of the industrial, banking and … market risk of industrials during the crisis and both the pre-crisis market risk of the banking sector and the scale of the …

The informativeness of risk factor disclosures is a subject of debate. We predict and find that risk factor disclosures … in 10-K filings reduce the chance of a large negative movement in stock prices—stock price crash risk. This effect is … with higher information asymmetry, litigation risk, short interest, or better corporate governance. Overall, our findings …

the stock options granted to the latter. This difference can be explained by the risk premium that technology CEOs have in …

between different CEO compensation components and firms' investment policy and firm risk. Specifically, the proportion of CEO … incentive for CEO to take risk on R&D investment and firm focus …

Agency theory argues that pay-performance sensitivity should be negatively associated with risk. Yet, empirical studies … dealership in Taiwan to examine the relationships among risk, employee compensation contract design, and firm performance …. Results show that pay-performance sensitivity (incentive) for salespersons is negatively associated with risk (i …

We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via … disclosure policy. Contributing to the literature on CEO risk-taking, we document a positive association between CEO options and … future systematic stock liquidity risk. Controlling for endogeneity, we show that information disclosure quality is an …

Influenced by their compensation plans, CEOs make their own luck through decisions that affect future firm risk. After … adopting a relative performance evaluation (RPE) plan, total and idiosyncratic risk are higher, and the correlation between …) plans. Plans including accounting-based performance metrics and/or cash payouts have weaker risk-related incentives. The …