This paper examines the relation between tournament incentives and reserve management. We find a positive relation … between internal tournament incentives and reserve errors, implying that a larger pay gap as a tournament prize induces vice … profitability. In addition, we find the impact of internal tournament incentives on the reserve error is more pronounced for larger …

of evidence that independent director reputation incentives influence the supply of director services. These reputation … incentives vary across firms and over time, significantly influencing important board decisions and firm outcomes. When more …

We provide new evidence that equity incentives can have perverse effects on firm value. Conditioning the relationship … between chief executive officer (CEO) incentives and the risk exposure generated by corporate policy decisions on how risk is … avoid risk, the incentive effect of delta partially offsets risk aversion. We show that while CEO incentives affect …

deliberately provide managers with risk-taking incentives to address risk-related agency conflicts and these incentives do not … effects of managers' stock holdings by showing that these incentives vary based on firms' value-risk tradeoffs … managers' incentive compensation packages. I find that shareholder value increases with risk and therefore managerial risk …

This paper investigates how precautionary trading behavior of fund managers induced by a higher junior fee component in … from Collateralized Loan Obligation (CLO) funds, we find that fund managers with a higher ratio of subordinate fee to total … fees are more likely to sell downgraded loans. Fund managers exhibit such precautionary trading behavior even when …

set ex ante explicit severance pay agreements as one component in managing the optimal level of equity incentives. Younger … post payouts to managers are largely determined by the ex ante contract terms …