CEO Risk Taking Equity Incentives and Workplace Misconduct

Justin Chircop, Monika Tarsalewska, Agnieszka Trzeciakiewicz

Research output: Contribution to journalArticlepeer-review

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.
Original languageEnglish
Number of pages29
JournalThe Accounting Review
Early online date21 Aug 2024
DOIs
Publication statusE-pub ahead of print - 21 Aug 2024

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