2024/08/23 by Justin Chircop, Monika Tarsalewska, Agnieszka Trzeciakiewicz · 46 citations
Business, Management and Accounting · Decision Sciences · Economics, Econometrics and Finance · #Accounting #Business #Economics #Equity (law) #Ethics in Business and Education #Incentive #Law #Law, Economics, and Judicial Systems #Microeconomics #Misconduct #Political science #Risk Management in Financial Firms
paper · open access · doi:10.2308/tar-2020-0648
published in The Accounting Review 100(1), 139-167 (American Accounting Association)
openalex publication_date 2024/08/23 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05
ABSTRACT We examine the relation between CEO risk taking equity incentives, as captured by CEO vega, and workplace misconduct. Workplace misconduct includes health and safety violations, non-compliance with labor laws, and other violations broadly related to labor exploitation, and it results in significant economic costs. Using regression analysis, matched sample tests, and a quasi-natural experiment, we find a positive relation between CEO vega and workplace misconduct. We identify a reduction in discretionary expenses and increased employee workload as channels through which CEO vega affects workplace misconduct. JEL Classifications: G30; G32; G34.