effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that when the incentive design … lacks RPE features, the incentive portfolio vega motivates CEOs to increase total risk through the systematic component … because it can be hedged. In contrast, when the incentive design includes RPE features, CEOs prefer idiosyncratic risk because …

reason, this study attempts to analyze the management of risk in Indonesian banks, relying particularly from the commonly …-prescribed indicators, such as; market risk, credit risk, and operational risk. These sets of indicators are analyzed to note the relational …

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 …

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 …

This study aims at (1) developing an index to measure CEO risk tolerance using publicly available data, and (2 …) examining the association between this index and investment in risky projects. Using relative pay-at-risk as a proxy for risk …-demographic variables – the variables often studied in connection with risk aversion. Furthermore, this risk preference indicator has a …

A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in … environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature … use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and …

-- Agency Theory ; Risk versus Incentives Tradeoff ; Delegation of Worker Authority ; Performance Pay …