We investigate the risk choices of risk averse CEOs. Following recent theoretical work, we expect CEO risk aversion to … firm risk, even in the presence of strong risk taking incentives. Our results are robust to controls for the sensitivity of … CEO wealth to stock price changes, firm risk determinants, the endogenous feedback effects of firm risk on CEO incentives …

, increasingly entrenched insiders mitigate their own risk aversion. Above 36%, incentive alignment emerges as managers become more …We investigate the relative importance of managerial entrenchment and incentive alignment as indicated by REIT risk …-taking. The two theories make contradictory predictions about the sign of the relation between insider ownership and risk. We test …