We examine the relation between CEO risk taking equity incentives, as captured by CEO vega, and workplace misconduct. Workplace misconduct includes health and safety violations, non-compliance with labor laws, and other violations broadly related to labor exploitation, and results in significant...

Purpose: The nature of each component of executive compensation varies, resulting in variances in executive in- centives and investor pricing. To examine whether there is a differential relation between executive compensation components and cost of equity capital, this study decomposes the...

This study predicts and finds that chief executive officer (CEO) risk-taking incentives induced by stock option compensation increase a bank’s contribution to systemic distress risk and systemic crash risk. We also predict and find that this CEO incentive–systemic risk relation operates...