: reducing the opportunity for managers to transfer value to equityholders from creditors via strategic default, and reducing the … can use compensation awards that increase managerial performance incentives (delta) and risk-taking incentives (vega) in …

value. Regulators intended that implementation of PVSOs would be beneficial to shareholders by improving the link between …

) plans. Plans including accounting-based performance metrics and/or cash payouts have weaker risk-related incentives. The …

risk taking. One of the objectives is the motivation of further research on the topic. Risk-averse managers hold less … diversified portfolios and, thus, tend to take less risk than optimal for shareholders. More option grants may encourage risk … mitigating overall risk-taking incentives. The net effect of options on risk-taking behavior is, therefore, ambiguous and calls …

We examine whether executive compensation contracts affect conservative accounting. Managers, on the one hand, may …

This study examines whether and how CEO equity incentives relate to financing choices (i.e., debt and leases). Using … between CEO equity incentives and firm leverage. We also found that CEO equity incentives and leases are negatively related … relationship between executive equity-based incentives and firm's financing choices. The substitutability theory we introduced here …