Managerial risk-taking behavior and equity-based compensation
成果类型：
Article
署名作者：
Low, Angie
署名单位：
Nanyang Technological University
刊物名称：
JOURNAL OF FINANCIAL ECONOMICS
ISSN/ISSBN：
0304-405X
DOI：
10.1016/j.jfineco.2008.05.004
发表日期：
2009
页码：
470-490
关键词：
摘要：
Equity-based compensation affects managers' risk-taking behavior, which in turn has an impact on shareholder wealth. In response to an exogenous increase in takeover protection in Delaware during the mid-1990s, managers lower firm risk by 6%. This risk reduction is concentrated among firms with low managerial equity-based incentives, in particular firms with low chief executive officer portfolio sensitivity to stock return volatility. Furthermore, the risk reduction is value-destroying. Finally, firms respond to the increased protection accorded by the regime shift by providing managers with greater incentives for risk-taking. (C) 2009 Elsevier B.V. All rights reserved.