's core business and explorative inventions. It implies that managers diversify their innovation portfolios and decrease …We investigate how CEO's risk incentive (vega) affects firm innovation. To establish causality, we exploit compensation … identification tests indicate a positive and causal effect of CEOs' vega on innovation activities. Furthermore, dampened managerial …

of innovation: inputs and outputs. These positive effects remain valid after controlling for potential endogeneity … managers and policymakers in developing option incentive programs to promote innovations in emerging economies …

We investigate the relationship between chief executive officer (CEO) compensation and innovation. In an empirical … positively related to patents and citations to patents. In addition, convexity of options has a positive effect on innovation. We … managers' compensation contracts are reset favorably. We provide support for the theory that compensation contracts that offer …