distorting the termination decision. Our results capture the transition from a young, financially constrained firm to a mature …

experiment in a large retail chain. In a 2 × 2 factorial design, we vary: (i) whether store managers obtain access to decision …The core role of managerial accounting is to provide information to facilitate managers' decisions and influence their … different behavioral channels. In particular, managers make use of the information provided by placing higher-margin products …

management position. However, if non-contractible managerial decision rights give rise to private benefits and preference … misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private … managerial decision rights and performance-based promotions leads to a situation often referred to as the Peter principle …

Agency theory argues that pay-performance sensitivity should be negatively associated with risk. Yet, empirical studies … dealership in Taiwan to examine the relationships among risk, employee compensation contract design, and firm performance …. Results show that pay-performance sensitivity (incentive) for salespersons is negatively associated with risk (i …

We investigate the risk choices of risk averse CEOs. Following recent theoretical work, we expect CEO risk aversion to … firm risk, even in the presence of strong risk taking incentives. Our results are robust to controls for the sensitivity of … CEO wealth to stock price changes, firm risk determinants, the endogenous feedback effects of firm risk on CEO incentives …

. Vega does not capture risk-taking incentives from managers' stock and debt holdings and does not reflect the fact that … measure explains risk choices better than vega and the relative measures, and should be useful for future research on managers …We measure a manager's risk-taking incentives as the total sensitivity of the manager's debt, stock, and option …

2008 financial crisis. Strong and weak banks also stand apart: managers from weak banks took more risk than their peers in …This paper solves the dynamic investment problem of a risk averse agent compensated with a performance related bonus … principal experiences financial stress. Thus weaker financial corporations explain the downwards trend in risk-taking after the …

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 …