Bendig, David; Schulz, Colin; Möhwald, Maximilian; Pollok, Patrick
Research article (journal) | Peer reviewedThis study draws on the behavioral agency model to investigate how stock options incentivize CEO risk-taking related to investments in external clean technology (cleantech) ventures. Using longitudinal data from 540 publicly traded firms, we find that current option wealth is negatively associated with corporate cleantech investments while prospective option wealth is positively associated. The results show that founder CEOs, who exhibit different endowment and risk-bearing patterns than hired CEOs, do not perceive cleantech investments as mixed gambles. These findings advance understanding of the interplay between equity-based incentives, CEO characteristics, and incumbents' pursuit of sustainable business practices.
Bendig, David | Professorship of Entrepreneurship (Prof. Bendig) |
Möhwald, Maximilian | Chair for Entrepreneurship (Prof. Bendig) (ENT) |
Schulz, Colin | Professorship of Entrepreneurship (Prof. Bendig) |