between different CEO compensation components and firms' investment policy and firm risk. Specifically, the proportion of CEO … incentive for CEO to take risk on R&D investment and firm focus …

This paper examines the two-way relationship between managerial compensation and corporate risk by exploiting an … related to incentives and risk — how boards adjust incentives in response to firms' risk and how these incentives affect … managers' risk-taking. We find that, after left-tail risk increases, boards reduce managers' exposure to stock price movements …

, which is consistent with the view that there is a trade-off between pay and dismissal risk. To mitigate endogeneity concerns …, I use divorce as an exogenous negative shock to CEO equity ownership, and find that following a divorce, turnover risk …

, overall firm risk, and other forms of compensation. Further, we document that the relation between bonus compensation and tax …

. The model predicts that firm performance and risk increase in the external pay gap, with these incentive effects … gap is reliably and positively associated with firm performance and risk and with the riskiness of investment and …

expose firm value to aggregate risk, can help them catch up with executive peers' pay during industry fluctuations. Excessive … systemic risk-taking with pay for luck emerges in equilibrium. We also discuss a number of testable implications for … compensation arrangements and risk taking in the cross section …

We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via … disclosure policy. Contributing to the literature on CEO risk-taking, we document a positive association between CEO options and … future systematic stock liquidity risk. Controlling for endogeneity, we show that information disclosure quality is an …

Influenced by their compensation plans, CEOs make their own luck through decisions that affect future firm risk. After … adopting a relative performance evaluation (RPE) plan, total and idiosyncratic risk are higher, and the correlation between …) plans. Plans including accounting-based performance metrics and/or cash payouts have weaker risk-related incentives. The …

between policy uncertainty and corporate risk-taking. We show that high levels of policy uncertainty are associated with … to their own firm and by reducing firm-level risk-taking. Furthermore, our results support the hypothesis that CEO risk …