firm risk, even in the presence of strong risk taking incentives. Our results are robust to controls for the sensitivity of … CEO wealth to stock price changes, firm risk determinants, the endogenous feedback effects of firm risk on CEO incentives …

Uncertainty has qualitatively different implications than risk in studying executive incentives. We study the interplay … who face greater uncertainty desire faster learning, and consequently offer higher managerial incentives to induce higher … generates a positive relation between profitability uncertainty and incentives. We document empirical support for this …

Uncertainty has qualitatively different implications than risk in studying executive incentives. We study the interplay …. Investors who face greater uncertainty desire faster learning, and consequently offer higher managerial incentives to induce … generates a positive relation between profitability uncertainty and incentives. We document empirical support for this …

-based contract, makes investment decisions for a firm that faces time-varying volatility. The contract creates incentives that affect …This study provides evidence that managerial incentives, shaped by compensation contracts, help to explain the … both the sign and magnitude of a manager's optimal response to volatility shocks. The model is calibrated using …