Abstract
AbstractWe examine the effect of CEO option compensation on firm risk in Canadian firms listed on the S&P/TSX index. Results show that there is a robust size effect. Option compensation has a positive and significant effect on firm risk only in small firms and no significant effect in large firms. Moreover, option compensation has no significant effect on firm risk in cross‐listed firms, but within the sample of cross‐listed firms option compensation has a positive and significant effect in small firms only. Overall, our results suggest that CEO compensation is more effective in encouraging risk taking in small Canadian firms.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
