The inevitable disclosure doctrine and CEO risk-taking incentives

被引：0
|
作者：
Yang, Jingyu [1 ]
Zhang, John Z. [2 ]
机构：
[1] Shenzhen Univ, Dept Accounting, Shenzhen, Peoples R China
[2] Univ Liverpool, Dept Accounting, Liverpool, Merseyside, England
来源：
ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS | 2023年 / 30卷 / 01期
关键词：
Trade secret law; IDD adoption; CEO risk-taking incentives; equity compensation; external employment opportunities;
D O I：
10.1080/16081625.2020.1871041
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates the impact of the inevitable disclosure doctrine (IDD) on risk-taking incentives of chief executive officers (CEOs). Because the IDD restricts CEOs' external employment opportunities, we expect CEOs to become more risk-averse and firms to increase CEO risk-taking incentives after IDD adoption. Consistent with expectations, we find that IDD adoption is associated with higher CEO risk-taking incentives, measured by the sensitivity of CEOs' equity holdings to stock return volatility (Vega). The positive impact of IDD adoption on CEO risk-taking incentives is stronger for firms in more homogeneous industries and for CEOs in the later years of their tenure.
引用
收藏
页码：120 / 138
页数：19
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