Working Paper

CEO Option Compensation Can Be a Bad Option: Evidence from Product Market Relationships

This paper studies how firms’ important customer relationships can affect the choice of CEO compensation structure. We hypothesize that having major customers raises the costs associated with CEO risk-taking incentives, leading to lower option-...Read more

Claire Yang Liu
Ronald Masulis
Jared Stanfield
22 September 2017

The impact of mandatory governance changes on financial risk management

This paper uses the staggered adoption of the Sarbanes-Oxley Act of 2002 for a difference-in-difference identification of the impact of corporate governance on hedging. In a large panel of listed US firms, we focus on two indexes of the legally...Read more

Ulrich Hege
Elaine Hutson
Elaine Laing
12 February 2018