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disaster-exposed CEOs receive a 5.24% higher compensation delta and a 6.43% higher compensation vega. Further, a higher …
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We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via …
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-taking incentives in addition to effort incentives. We develop a stylized principal-agent model that captures the interdependence … between firm risk and managerial incentives. We calibrate the model to individual CEO data and show that it can explain … with the almost uniform use of at-the-money stock options. We conclude that the provision of risk-taking incentives is a …
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