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Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when …
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Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when … return. Further results on the form of contracts are also derived. -- managers ; risky decisions ; limited liability …
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, the fund manager is often replaced. We argue that this may lead to excessive risk-taking if fund managers differ in … ability and have the opportunity to take excessive risk. To match the benchmark, fund managers may increase the risk of their …
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This study analyzes the relation between CEO personal risk-taking, managerial risk-taking and total firm risk. We find evidence that CEOs who possess private pilot's licenses, our proxy for personal risk-taking, are associated with riskier firms. Firms led by CEO pilots have higher equity return...
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Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when …
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