CEO Risk Taking Equity Incentives and Workplace Misconduct

• 成果类型: Article
• 署名作者: Chircop, Justin; Tarsalewska, Monika; Trzeciakiewicz, Agnieszka
• 署名单位: Lancaster University; University of Exeter; University of York - UK
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2020-0648
• 发表日期: 2025
• 页码: 139-167
• 关键词: corporate social-responsibility; Option compensation; managerial incentives; STOCK-OPTIONS; firm; performance; IMPACT

摘要

We examine the relation between CEO risk taking equity incentives, as captured by CEO vega, and workplace misconduct. Workplace misconduct includes health and safety violations, non-compliance with labor laws, and other violations broadly related to labor exploitation, and it results in significant economic costs. Using regression analysis, matched sample tests, and a quasi-natural experiment, we find a positive relation between CEO vega and workplace misconduct. We identify a reduction in discretionary expenses and increased employee workload as channels through which CEO vega affects workplace misconduct.