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Feb 01, 2006 · We provide empirical evidence of a strong causal relation between managerial compensation and investment policy, debt policy, and firm risk. Controlling for CEO pay-performance sensitivity (delta) and the feedback effects of firm policy and risk on the managerial compensation scheme, we find that higher sensitivity of CEO wealth to stock volatility (vega) …

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12.1. Understanding “artificial intelligence” The term “artificial intelligence,” or in abbreviated form “AI,” is widely used in society but its precise meaning is contested in both scholarly work and legal documents and we will not insist on a single definition here but instead pick out a few subtypes: Machine learning (ML), a subset of AI, has been the most popular approach of ...

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