An Empirical Study for Corporate Risk Index: CEO Characteristics Affecting Corporate Risk-Taking

Impact of Financial Characteristics on Future Corporate Risk-Taking Behavior

Organizational risk is often defined as a change in the flow of profit, or as a sys-tematic or non-systematic changes in the stock return flow. The risk taking of management is conceptualized as the actual investment decisions that are indictors due to uncertainty results. The purpose of this study is to investigate the effect of financial characteristics on future corporate risk taking behavio...

Globalization of Corporate Risk Taking

We explore how the interconnected nature of global finance affects corporate risk taking. We show that a common global factor known to be associated with fluctuations in cross-border banking is also strongly associated with common comovements in corporate risk-taking across a diverse universe of international firms. Our study contributes to the international business literature as the first com...

Does Executive Portfolio Structure Affect Risk Management? CEO Risk- taking Incentives and Corporate Derivatives Usage

This paper extends the investigation of the effect of managerial motives on hedging policy. I utilize a proxy variable that incorporates CEO incentives to increase risk relative to incentives to increase stock price. The variable is directly measured using observed characteristics of CEO portfolios of stock and option holdings. Furthermore, CEO risk-taking incentives are modeled as a choice var...

Creditor rights and corporate risk-taking

We propose that stronger creditor rights in bankruptcy affect corporate investments by reducing corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater propensity of firms to engage in diversifying acquisitions and of firms with low-recovery assets to acquire targets with high-recovery assets. These relations are strongest in countries where manage...

Appendix for “ Managerial risk - taking incentives and corporate pension policy ”