In this study, we examine whether the initiation of credit default swaps affects the reference entity's executive compensation design. With both human capital and financial capital highly associated with the firm's bankruptcy risk, risk averse managers prefer cash compensation over option...

In this study, building upon the relative performance evaluation framework and agency theory we study issues related to long-term as well as short-term compensation for CIOs. We reveal that long-term CIO compensation is linked to a firm’s stock performance while short-term CIO compensation is...

This paper examines the relation between annual report boilerplate and firm performance and earnings persistence. Utilizing a neural network algorithm inspired by word2vec, we compute the annual report boilerplate, defined as the average probability of the occurring of each sentence in a given...

This paper investigates whether stock market liquidity has an impact on banks’ risk-taking behaviour. Using the Tick Size Pilot Program of the Securities and Exchanges Commission (SEC) to identify liquidity shocks, I show that banks with less liquid stocks take more risk, as reflected in lower...