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argue that the pre-merger structure of CEO wealth impacts a CEO's risk tolerance and ultimately her willingness to undertake …
Persistent link: https://www.econbiz.de/10013065780
Following the optimal contracting hypothesis, this study investigates the issue of whether the board of director's ex ante choice to incorporate individual performance evaluation (IPE) measures into the CEO bonus plan rewards managerial decisions not reflected in measures of the firm's current...
Persistent link: https://www.econbiz.de/10015383234
We investigate the impact of workers' exposure to unemployment risk on CEO incentive compensation. Exploiting state … insurance benefits become more generous boards increase the convex payoff structure of CEO pay to encourage risk-taking. The …
Persistent link: https://www.econbiz.de/10012971766
between policy uncertainty and corporate risk-taking. We show that high levels of policy uncertainty are associated with … to their own firm and by reducing firm-level risk-taking. Furthermore, our results support the hypothesis that CEO risk …
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Several countries have implemented bonus taxes for corporate executives in response to the financial crisis of 2007-2010. Using a principal-agent model, this paper investigates the incentive effects of bonus taxes by analyzing the agent's and principal's behavior. Specifically, we show how bonus...
Persistent link: https://www.econbiz.de/10009736472