This paper investigates the use of environmental performance as a component of executive compensation. Results indicate that compensation of chief executive officers at firms with higher levels of environmental exposure includes an environmental risk premium; top executives receive compensation...

The amount and timing of a firms' ultimate financial obligation for contingent environmental liabilities is uncertain and subject to the outcome of future events. We decompose uncertainty about Superfund contingent liabilities into two sources: 1) uncertainty regarding extent of site...

We investigate the potential uncertainty-reducing role of accounting information in the context of contingent Superfund liability valuation. We first develop theoretical arguments for the way reduction of uncertainty regarding these contingent liabilities is expected to affect security prices....