Work

CEO Risk Taking Equity Incentives and Workplace Misconduct

Year: 2024

Type: article

Abstract: ABSTRACT 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. JEL Classifications: G30; G32; G34.

Source: The Accounting Review

DOI: 10.2308/tar-2020-0648

Authors: Justin Chircop, Monika Tarsalewska, Agnieszka Trzeciakiewicz

Institutions: Lancaster University, University of Exeter, University of York

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W4401800349

FWCI: 56.6

Cites: 58

Cited by: 71

Related to: 10