CEO risk taking equity incentives and workplace misconduct

Chircop, Justin and Tarsalewska, Monika and Trzeciakiewicz, Agnieszka (2025) CEO risk taking equity incentives and workplace misconduct. The Accounting Review, 100 (1). pp. 139-167. ISSN 0001-4826

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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.

Item Type:

Journal Article

Journal or Publication Title:

The Accounting Review

Uncontrolled Keywords:

Research Output Funding/no_not_funded

Subjects:

?? no - not fundednofinanceeconomics and econometricsaccounting ??

Departments:

Lancaster University Management School > Accounting & Finance

ID Code:

222273

Deposited By:

ep_importer_pure

Deposited On:

17 Jul 2024 09:00

Refereed?:

Yes

Published?:

Published

Last Modified:

27 Mar 2025 02:08

URI:

https://eprints.lancs.ac.uk/id/eprint/222273