Executive Compensation and Risk Taking in the Property and ...

Executive Compensation and Risk Taking in the Property and ... - jstor

holders. This study examines the relationship between executives' stock-based compensation and managerial risk-taking behavior in the property liability ...

Agency theory suggests that granting stock‐based compensation to execu‐tives incentivize risk‐taking by aligning managerial interests with those of the ...

Executive Compensation and Risk Taking

At the same time, “banks can alter the risk composition of their assets more quickly than most nonfinancial industries, and ... readily hide problems”(Levine, ...

Executive compensation and risk taking - EconStor

Indeed, the value of the stock is then like the value of a call option and is increasing in the volatility (riskiness) of the assets held by the firm. This ...

A Simultaneous Equation Approach - OneSearch - Ex Libris

We study whether insurance companies' option-based compensation induces risk-taking, and whether their firm risk determines the design of CEOs' compensation ...

Executive compensation and corporate risk management - Yun - 2023

We find that the decline in the convexity of executive compensation following FAS 123R led firms to significantly increase corporate risk ...

The Million Dollar Rule, Executive Compensation, and Managerial ...

structure of executive compensation that generate modest increases in CEO risk taking behavior. ... investment in physical assets which are viewed as less risky.

{ 6 } Executive Incentives and Risk Taking - Oxford Academic

The move to incentive compensation in the early 1990s was aimed at increasing the risk level that CEOs choose. However, the induced risk-taking behavior had ...

Executive compensation, risk and performance: evidence from the ...

Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. ...

Executive Equity Risk-Taking Incentives and Firms' Choice of Debt ...

Prior research shows that by influencing the structure of executive compensation, compensation-related accounting regulations materially affect corporate ...

Option Grants and CEO Risk-Taking | NBER

Raising the share of stock options in a CEO's compensation package may lead to greater corporate risk-taking, according to a new study.

Executive compensation, risk, and performance: Evidence from the US

study investigates the endogenous relationship between executive compensation and risk taking ... total assets and find that the parameters of compensation ...

Analyst coverage, executive compensation and corporate risk ...

Firm risk increases through at least one risk-taking action, such as investing firm assets in higher-risk bonds. Our study highlights the ...

How Important are Risk-Taking Incentives in Executive Compensation

Risk-taking incentives are important in CEO compensation contracts, because CEOs are often heavily exposed to firm-specific risk through their large stock and ...

Analyst coverage, executive compensation and corporate risk‐taking

Results are driven by firms with stronger managerial risk‐taking compensation incentives. The increase in risk is stronger in more opaque firms, and firms with ...

Executive Compensation and Risk Taking | Request PDF

However, according to Bolton et al. (2015) , structuring the executive compensation to maximize shareholder value will encourage them to take excessive risks.

CEO risk-taking incentives and corporate social responsibility

Bebchuk and Fried (2003) argue that powerful CEOs set their own pay and prefer compensation schemes with more cash and fewer options. Powerful CEOs may also be ...

Analyst Coverage, Executive Compensation and Corporate Risk ...

Results are driven by firms with stronger managerial risk-taking compensation incentives. The increase in risk is stronger in more opaque firms, ...

Relative Wealth Concerns, Executive Compensation, and Systemic ...

Relative Wealth Concerns, Executive Compensation, and Systemic Risk-Taking ... Abstract: Given the recent empirical evidence on peer effects in ...

How Important Are Risk-Taking Incentives in Executive ...

Risk-taking incentives are important in CEO compensation contracts, because equity compensation exposes CEOs to firm-specific risk. Risk-averse CEOs will want ...