interquartile change in the distribution of CEO pay translates in a reduction of the failure risk probability by approximately 21 … failure risk. The effectiveness of CEO pay is strengthened among well-governed firms, whereas tournament incentives are … essential when there is high CEO succession risk. Both measures of executive pay are associated with better financial reporting …

2008 financial crisis. Strong and weak banks also stand apart: managers from weak banks took more risk than their peers in …This paper solves the dynamic investment problem of a risk averse agent compensated with a performance related bonus … principal experiences financial stress. Thus weaker financial corporations explain the downwards trend in risk-taking after the …

This study examines how the risk-taking motives of top managers drives risk-taking in IT implementations. We use the … risk incentives provided in managerial compensation to capture top managers' risk-taking motives, and develop measures of … in their primary business areas. The implication is that diversification provides risk-seeking managers more …

Purpose – The purpose of this study is to investigate the association between corporate risk and the interaction … corporate risk only exists in the sphere of overconfident CEOs and 2) that the positive association between overconfident CEOs … and corporate risk only exists in the sphere of high CEO incentive compensation. The authors show that the combination of …