In this study we use estimates of the sensitivities of managers' portfolios to stock return volatility and stock price to directly test the relationship between managerial incentives to bear risk and two important corporate decisions. We find that as the sensitivity of managers' stock option...

In this study we use estimates of the sensitivities of managers' portfolios to stock return volatility and stock price to directly test the relationship between managerial incentives to bear risk and two important corporate decisions. We find that as the sensitivity of managers' stock option...

Internal growth opportunities are valued as a real option. In this model, a firm gains access to productive technology by successfully completing a basic Ramp;D project before its competitors and introducing a new product into the market. Ramp;D strategically impacts the speed of innovation. The...