TY - JOUR
T1 - CEO Risk Taking Equity Incentives and Workplace Misconduct
AU - Chircop, Justin
AU - Tarsalewska, Monika
AU - Trzeciakiewicz, Agnieszka
N1 - This is an author-produced version of the published paper. Uploaded in accordance with the University’s Research Publications and Open Access policy.
PY - 2024/8/21
Y1 - 2024/8/21
N2 - 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.
AB - 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.
U2 - 10.2308/TAR-2020-0648
DO - 10.2308/TAR-2020-0648
M3 - Article
SN - 0001-4826
JO - The Accounting Review
JF - The Accounting Review
ER -