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risk preference and firm risk (the volatility of firm performance measures such as stock return, earnings and operating … cash flows). My results show a negative association between the CEO risk aversion (as measured by realized performance on … inside debt) and the volatility of firm market performance: Firms with risk-averse CEOs have experience less stock price …
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We present a simple discrete-time version of the continuous-time agency model under mean-volatility joint ambiguity uncertainties, which conveniently captures a number of important properties of optimal contracts without having to rely on complex continuous-time mathematical issues. The...
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for firms. We rationalize these findings in a model of risk sharing between a risk-averse firm and workers with limited …
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