In recent years, the increasing carriage of HM by sea has already leaded to one of the major disputes between coastal and flag States. This is because of the potential damage to the marine environment and the socio-economic aftermath. Furthermore maritime accidents (e.g. M/T Ievoli Sun, M/T...

We explore the relationship between incentives and Shadow Risks - those risks that are not easily captured by common financial measures and yet can lead to major adverse events. Theoretically, increased risk-taking is nonmonotonic in higher powered executive compensation. However, for those...