CEO Risk Taking Equity Incentives and Workplace Misconduct
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.
Authors
- Monika Tarsalewska (ORCID: https://orcid.org/0000-0003-4278-5697)
- Justin Chircop (ORCID: https://orcid.org/0000-0002-5235-8077)
- Agnieszka Trzeciakiewicz
Institutions
- University of Exeter (GB)
- University of York (GB)
- Lancaster University (GB)
Publication Details
- Journal
- The Accounting Review
- Published
- 2024-08-23
- DOI
- https://doi.org/10.2308/tar-2020-0648
- Citations
- 33
- Primary Topic
- Law, Economics, and Judicial Systems
- Type
- article
- Field-Weighted Citation Impact
- 33.88