We show that executives cut investment when their incentives become more short-term. We examine a unique event in which … exploits that FAS 123-R's adoption was staggered almost randomly by firms' fiscal year-ends. CEOs cut investment and reported …

This paper links the CEO's concerns for the current stock price to reductions in real investment. We identify short … assets), 11% of the average investment-to-assets ratio. Vesting equity is also associated with positive analyst forecast … determined by equity grants made several years prior, and thus unlikely to be driven by current investment opportunities, our …

This paper links the impending vesting of CEO equity to reductions in real investment. Existing studies measure the … current investment opportunities. An interquartile increase is associated with a decline of 0.11% in the growth of R&D (scaled …