We examine how chief executive officers' (CEOs) innate risk aversion influences the size and structure of their compensation contracts. In so doing, we estimate managerial risk aversion based on the Big Five personality traits—openness, conscientiousness, extraversion, agreeableness, and...

In recent years, several accounting standards, including IFRS 3, issued by the IASB substitute historical cost with fair value measures and so provide managers with increased discretion to determine the fair value without an actual market for the asset. Using Swedish data, we document the...