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Do CEO Stock Options Lead to More Workplace Violations?

Do CEO Stock Options Lead to More Workplace Violations?

Summary

Financial Accounting Wellness ESG

This study examines how CEO risk-taking incentives, particularly through stock options (called "vega"), are associated with workplace misconduct, including labor law violations and health and safety breaches. The researchers analyzed 17,831 firm-year observations from 1,916 U.S. firms between 2000 and 2018.