Are fluctuations in firms' profitability risk a major cause of regular business cycles? We study this question within … such a model, surprise increases of risk lead to a wait-and-see policy for investment at the firm level and a decrease in … the size of firm-level risk fluctuations. We find that time-varying firm-level risk on its own is unlikely to be a major …

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 …

firms which are the least vulnerable to takeover threat (the least idiosyncratic risk) outperform the others. We also find …