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 …

%. The Pay Gap between the CEO and its subordinate executives (tournament incentives) also plays a major role in lowering IPO … failure risk. The effectiveness of CEO pay is strengthened among well-governed firms, whereas tournament incentives are …

. Vega does not capture risk-taking incentives from managers' stock and debt holdings and does not reflect the fact that …We measure a manager's risk-taking incentives as the total sensitivity of the manager's debt, stock, and option … measure explains risk choices better than vega and the relative measures, and should be useful for future research on managers …

2008 financial crisis. Strong and weak banks also stand apart: managers from weak banks took more risk than their peers in …

risk to managers and encouraging risk-substitution; that is, managers with relatively undiversified personal portfolios …

We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via …