Brick, Ivan E.; Palmon, Oded; Wald, John K. - In: The Review of Economics and Statistics 94 (2012) 1, pp. 287-303
We examine the relation between pay-performance sensitivity (PPS), the convexity of managerial compensation (Vega), and future stock risk and returns for a large sample of firms between 1992 and 2004. Higher PPS and Vega are both associated with lower future stock returns. Part of this negative...
