-taking incentives, providing above-threshold firms with greater incentives to take risk and below-threshold firms the opposite. Risk …Many regulations are based on size thresholds. We develop a model that shows that such regulations distort risk … regulatory costs. We test our model by examining changes in risk around the Dodd-Frank Act, a major regulation with size …

failure risk. The effectiveness of CEO pay is strengthened among well-governed firms, whereas tournament incentives are … interquartile change in the distribution of CEO pay translates in a reduction of the failure risk probability by approximately 21 …%. The Pay Gap between the CEO and its subordinate executives (tournament incentives) also plays a major role in lowering IPO …

simple model of (mis-)perceived incentives, individuals with stable earnings modify their year-end earnings target while …