Do Risk-Taking Incentives Induce CEOs to Invest? New Evidence from Acquisitions

Abstract

This paper examines the effect of risk-taking incentives on acquisition investments. We provide evidence that high vega CEOs are more likely to invest in acquisitions. Economically, an inter-quartile range change in vega translates into an approximately 6% enhancement in acquisition investments. Further, the association between risk-taking incentives and… (More)

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Cite this paper

@inproceedings{Croci2013DoRI, title={Do Risk-Taking Incentives Induce CEOs to Invest? New Evidence from Acquisitions}, author={Ettore Croci and George H Alexandridis and Lorenzo Caprio and François Derrien and Alex Edmans and Mara Faccio and Miguel Ferreira and Andrey Golubov and Nikolaos Karampatsas and Christos Mavis and Alain Schatt}, year={2013} }