We examine the impact of social capital at the US county level on managerial risk-taking incentives. We hypothesize that corporate executives in counties with higher social capital would accept lower equity-based compensation then faithfully behave in terms of efforts and risks following the...

This paper tests Leland's (2007) theoretical prediction that depending on specific merger conditions, corporate coinsurance can generate either synergistic gains accruing to both creditors and equityholders or a wealth transfer from stockholders to bondholders. We observe that in merger deals of...