performing agent must beat the second best to receive the winner prize. We analyze a tournament with two risk averse agents …. Under unlimited liability, the principal strictly benefits from a gap by partially insuring the agents and thereby reducing … labor costs. If the agents are protected by limited liability, the principal sticks to the standard tournament. …

A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in … environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature … use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and …

potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition …

potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition …

We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via … disclosure policy. Contributing to the literature on CEO risk-taking, we document a positive association between CEO options and … future systematic stock liquidity risk. Controlling for endogeneity, we show that information disclosure quality is an …

Influenced by their compensation plans, CEOs make their own luck through decisions that affect future firm risk. After … adopting a relative performance evaluation (RPE) plan, total and idiosyncratic risk are higher, and the correlation between …) plans. Plans including accounting-based performance metrics and/or cash payouts have weaker risk-related incentives. The …