Purpose – The purpose of this study is to investigate the association between corporate risk and the interaction … corporate risk only exists in the sphere of overconfident CEOs and 2) that the positive association between overconfident CEOs … and corporate risk only exists in the sphere of high CEO incentive compensation. The authors show that the combination of …

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 …