Executive compensation, macroeconomic conditions, and cash flow cyclicality
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DOI: 10.1016/j.frl.2019.101372
Abstract: I model the joint effects of debt, macroeconomic conditions, and cash flow cyclicality on risk-shifting behavior and managerial pay-for-performance sensitivity. I show that risk-shifting incentives rise during recessions and that the shareholders can eliminate such… read more here.
Keywords: macroeconomic conditions; cash flow; flow cyclicality;