Gryglewicz (2011) develops a model that evaluates the effect of the two sources of financial distress, illiquidity and insolvency, on firm financial decisions. Using a comprehensive database of corporate bonds from 1985 to 2009, we analyze the impact of these two sources of financial distress on...

Gryglewicz (2011) develops a model that evaluates the effect of the two sources of financial distress, illiquidity and insolvency, on firm financial decisions. Using a comprehensive database of corporate bonds from 1985 to 2009, we analyze the impact of these two sources of financial distress on...

While recent studies show that long vesting periods in managerial compensation increase corporate investments, it may reshape the shareholder-debtholder conflict as shareholders have to split the gains with creditors. We find that firms with longer CEO pay durations use more short-maturity...

This paper finds that CEO incentive horizon, proxied by their pay duration, has a positive influence on the engagement in corporate social responsibility (CSR), especially when firms face a higher risk of reputation loss, need more stakeholder support, and maintain more effective corporate...