While CEO compensation is seen as influencing firm performance, the intervening mechanisms that govern this influence have remained largely unexplored. Using the agency and expectancy theories, this paper attempts to open the "black box" between CEO compensation and firm performance and...

This article has a two-fold purpose. First, we investigate whether the CEOs’ risk-taking incentives are associated with better concurrent firm performance. Second, we examine the impact of gender on the aforementioned relationship. We find solid empirical evidence that CEOs’ risk-aversion...