geographically close to an award winner and who are not entrenched. We observe an increase in risk-taking, operating performance and …

This paper tests the proposition that higher tournament incentives will result in greater risk taking by senior … between the CEO and the next layer of senior managers, we find a significantly positive relation between firm risk and …-organizational CEO promotion tournaments provide incentives to senior executives to increase firm risk by following riskier policies …

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 …

. Furthermore, we document that firms run by CEOs with stronger ETIs suffer from distorted reporting outcomes, suboptimal investment … decisions, and greater failure risk. Finally, we show that CEOs with high ETIs are associated with unfavorable future career …

interquartile change in the distribution of CEO pay translates in a reduction of the failure risk probability by approximately 21 … failure risk. The effectiveness of CEO pay is strengthened among well-governed firms, whereas tournament incentives are … essential when there is high CEO succession risk. Both measures of executive pay are associated with better financial reporting …