Using a sample of 3,688 mergers and acquisitions over the period of 1992 to 2005, we find that post-merger equity risk … declines roughly 18% in the year after the announcement. We find that post-merger equity risk is negatively related to the … sensitivity of CEO wealth to stock return volatility (vega). The negative relation between vega and equity risk over the post …

theory, predicting that greater risk reduces contestants' incentives to exert effort. Moreover, the equilibrium prize spread … ambiguity adversely affects business unit managers' effort choices, project risk can partly offset the adverse effect of … is shown to decrease with ambiguity and increase with project risk. Finally, while greater project risk is unequivocally …

This study examines how the risk-taking motives of top managers drives risk-taking in IT implementations. We use the … risk incentives provided in managerial compensation to capture top managers' risk-taking motives, and develop measures of … aggressive IT implementation to capture strategic risk-taking in IT. Our analysis provides empirical evidence that managerial …

risk to managers and encouraging risk-substitution; that is, managers with relatively undiversified personal portfolios … tend to pass up profitable projects with high idiosyncratic (firm-specific) risk in favor of less-profitable projects that … have greater aggregate (market) risk. Using parametric and semi-parametric estimation methods, we examine how managerial …

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …