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We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via information disclosure quality. We document a negative association between CEO options and the quality of future managerial disclosure policy. Contributing to the literature on CEO...
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overconfidence and compensation incentives induced risk-taking, and the impact on accrualbased earnings management (AEM) and real … earnings management (REM). The study results show that overconfident managers are more likely to adopt REM than AEM … interaction dummy between overconfidence and Delta risk-taking, and interaction dummy between overconfidence and Vega risk …
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The litmus test for an effective compensation program is whether it provides “pay for performance.” While the concept of pay for performance is simple, its implementation is not. In particular, boards must consider not only whether a compensation plan encourages executives to pursue...
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