Assuming a positive influence of stock price volatility on stock option value, incentive alignment proponents argue that stock option compensation encourages managerial risk seeking and, thus, aligns managers' and shareholders' risk preferences. Our findings show that stock option holders...

What roles do CEOs play in firm performance? To address this question, the management field has accumulated a substantial amount of research over the past three decades built on upper echelons theory (UET), which posits that CEO characteristics manifest in firm strategic actions and, in this...