We investigate how CEO's risk incentive (vega) affects firm innovation. To establish causality, we exploit compensation changes instigated by the FAS 123R accounting regulation in 2005 that mandated stock option expensing at fair values. Our identification tests indicate a positive and causal...

Information-based theories of financial intermediation focus on delegated monitoring. However, there is little evidence on how markets discipline intermediaries who fail at this function. We exploit the direct link between corporate fraud and monitoring failure and examine how a venture capital...

Special Purpose Acquisition Companies (SPACs) have exploded in popularity in recent years. Their unique business model and structures beckon a comprehensive understanding of the incentives of SPAC sponsors and the implications of hidden information on the welfare of retail SPAC investors. This...