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“rainmakers”) to take the excessive risk and employ the excessive leverage in the bubble that created the preconditions for the … properties that induce reckless risk-taking. Since boom-period bonuses do not have to be returned if rainmaker decisions …
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In the aftermath of the 20078 crisis, senior policymakers and the media have blamed excessive risk-taking undertaken by …
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We inquire whether public opinion influences executive compensation. During 1992-2008 the negativity of press coverage of CEO pay varied significantly, with stock options being the most discussed pay component. We find that after more negative press coverage of CEO pay firms reduce option grants...
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This M.A. dissertation presents a study of the influence of financial distress on CEO compensation in the United States. It focuses on the four main components of executive compensation: salary, bonus, restricted stock and stock options. More specifically, I apply linear regression to panel data...
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We examine how an increase in stock option grants affects CEO risk-taking. The overall net effect of option grants is … theoretically ambiguous for risk-averse CEOs. To overcome the endogeneity of option grants, we exploit institutional features of … increase in new options granted leads to a 2.8-4.2 percent increase in equity volatility. This increase in risk is driven …
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We examine whether risk-taking among the largest financial firms in the U.S. is related to CEO equity incentives before … amount of emergency loans and total days the loans are outstanding are increasing in pre-crisis CEO risk-taking incentives … compensation contracts were positively associated with risk-taking in financial firms which resulted in potential solvency problems …
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literature in three ways. First, we find evidence that SOP votes are sensitive to firm risk, excessive CEO compensation …
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