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.

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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
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article

CEO Risk Taking Equity Incentives and Workplace Misconduct

Monika Tarsalewska, Justin Chircop, Agnieszka Trzeciakiewicz
33 citations
The Accounting Review
Law, Economics, and Judicial Systems
33.88
article

CEO Risk Taking Equity Incentives and Workplace Misconduct

Monika Tarsalewska, Justin Chircop, Agnieszka Trzeciakiewicz
article en
33 citations

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.

The Accounting ReviewVol. 100(1)
University of Exeter (GB), University of York (GB), Lancaster University (GB)
Decent work and economic growth
Openalex Percentile: Top 0%
Law, Economics, and Judicial Systems
33.88
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CEO Risk Taking Equity Incentives and Workplace Misconduct — Monika Tarsalewska, Justin Chircop, et al. · The Accounting Review (2024) | TGRS Research Map | TGRS