While executive compensation is often blamed for the excessive risk taking by banks, little is known about the … price. Performance targets for bankers are not related to the risk of the bank, and ROE targets are not appropriately … adjusted for leverage. Consequently, the design of executive compensation in banking may encourage both high leverage and risk …

industries with high litigation risk. We also test whether firms benefit from the ability to steer lawsuits into friendly courts …

from Norway. We find that a worker is paid more and faces less earnings risk if she gets a job in a firm with worker … representation on the corporate board. However, these gains in wages and declines in earnings risk are not caused by worker … representation per se. Instead, the wage premium and reduced earnings risk reflect that firms with worker representation are likely …

and governance risk, and in developing policies. Among other things, these data may inform debates on the degree to which …