convexity results in a 21% increase in a firm's crash risk after controlling for managerial price-increasing incentives. In … positive jump risk. We exploit an exogenous shock to compensation convexity, arising from a change in the expensing treatment … suggest that managerial equity compensation portfolios do not augment a firm's future idiosyncratic crash risk because they …

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 … compensation arrangements and risk taking in the cross section …

We study the motive of using equity-based pay in executive compensation: the risk-sharing motive versus the performance … find equity-based pay decreases in SPI, which is consistent with the risk-sharing motive but inconsistent with the …

I model the joint effects of debt, macroeconomic conditions, and cash flow cyclicality on risk-shifting behavior and … managerial pay-for-performance sensitivity. I show that risk-shifting incentives rise during recessions and that the shareholders …

, fundamental riskiness of the asset, the compensation scheme of the fund manager, and the risk-free interest rate, we give a …