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 …

between policy uncertainty and corporate risk-taking. We show that high levels of policy uncertainty are associated with … to their own firm and by reducing firm-level risk-taking. Furthermore, our results support the hypothesis that CEO risk …

We present a general-equilibrium theory of contracting in which managers are concerned about their social standing in a … expose firm value to aggregate risk, can help them catch up with executive peers' pay during industry fluctuations. Excessive … systemic risk-taking with pay for luck emerges in equilibrium. We also discuss a number of testable implications for …

market-based measures of firm risk. Using data on the S&P 1500 firms, we document that CEO and CFO age and gender have a … direct effect on market-based firm risk measures in addition to the indirect influence they may have through corporate policy … risk. Although the relationship between executive gender and firm risk is more equivocal, our results suggest that female …

Purpose: We empirically examine the impact of the stand-alone risk committee on corporate risk-taking and firm value …. Design/methodology/approach: We argue that the existence of a stand-alone risk committee enhances the quality of corporate … governance, which reduces corporate risk-taking and strengthens the firm value that might improve investor protection. Findings …

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 …

The Board of Directors' role in risk oversight has come under increased scrutiny, resulting in shareholder lawsuits …, increased regulation, and more extensive disclosure and listing requirements. While theory predicts that Board risk oversight … can benefit stakeholders by mitigating risk-related agency conflicts, critics argue that changes in Board practices in …

The topic of risk incorporates a variety of definitions within different fields such as psychology, sociology, finance …, and engineering. In academic finance, the analysis of risk has two major perspectives known as standard (traditional …) finance and behavioral finance. The central focus of standard finance proponents is based on the objective aspects of risk …

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 …