more sensitive to the firm's stock price the innovation performance of a firm improves. Entrenched managers, however, are …This paper investigates whether aligning manager and owner incentives can improve the innovation performance of firms …-term incentives have little impact on innovation. Higher managerial tenure increases the probability of R&D spending and innovation …

governance policies, such as managerial pay, and curbing competition. We study a model where managers can exert unobservable cost …

This paper provides highly significant evidence that golden parachutes spur innovation in concentrated … lead to higher levels of innovation quantity and quality through a risk-taking mechanism. The positive effects of … parachutes on innovation are more pronounced when ownership concentration increases for SOEs, as well as when ownership …

suggest that managers with high Vegas preserve their financing and investment flexibility by using few covenants, and that …

We examine whether executive stock options can induce excessive risk taking by managers in firms' security issue … with executive stock options aligning the interests of managers and shareholders; rather, it supports the hypothesis that … stock options sometimes make managers take on too much risk and in the process pursue suboptimal capital structure policies …

We address two apparent paradoxes of risk management: (1) managers hedge in order to avoid negative earnings surprises …, yet they tend to hedge risks uninformative of the value of the company; and (2) the presence of options in managers … informational asymmetry between insiders (managers) and outsiders (investors). Investors derive information about company value from …