limitless. The potential link between compensation and risk behavior is analyzed in this paper. A behavioral experiment with …Compensation schemes have been blamed for encouraging excess risk-taking on the part of managers within the financial … students shows that unilaterally constructed incentive schemes encourage excess risk-taking. Thus common bonus …

This paper tests the proposition that higher tournament incentives will result in greater risk taking by senior … between the CEO and the next layer of senior managers, we find a significantly positive relation between firm risk and …-organizational CEO promotion tournaments provide incentives to senior executives to increase firm risk by following riskier policies …

risk. Specifically, CEOs who face higher local incentives implement riskier policies, including higher R&D expenditures and … alternative local tournament incentives measures, sample periods, and firm risk proxies …

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 …

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 …

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 …

randomly allocate subjects into a work task paid either by performance or a fixed payment. Stress is measured through self …-reporting and salivary cortisol. The study finds that PRP subjects had significantly higher cortisol levels and self-rated stress …

tournament-based scheme vs. a fixed pay scheme. The experiment allows for the measurement of creative productivity, risk … productivity, but only according to their risk attitudes and self-assessments. The reason for the absence of a selection of the …

We conduct a field experiment in a controlled work environment to investigate the effect of motivational talk and its …