. This paper develop a model suggesting that employee ownership policy reveals management quality. Good managers would use … employee ownership as a reward management tool whereas bad managers would implement it for entrenchment motives. We bring about … three main conclusions: (i) Bad managers use employee ownership as an entrenchment mechanism. (ii) This latter phenomenon …

model suggesting that employee ownership policy reveals management quality. Good managers would use employee ownership as a … reward management tool whereas bad managers would implement it for entrenchment motives. We bring about three main … conclusions: (i) Bad managers use employee ownership as an entrenchment mechanism. (ii) This latter phenomenon increases the cost …

managers' risk-taking. We find that, after left-tail risk increases, boards reduce managers' exposure to stock price movements … and that less convexity from options-based pay leads to greater risk-reducing activities. Specifically, managers with less …