Browsing Sloan School of Management by Subject "Risk Incentives"

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    • Financing Decisions When Managers Are Risk Averse 

      Lewellen, Katharina (2004-02-06)
      This paper studies the impact of financing decisions on risk-averse managers. Leverage raises stock volatility, driving a wedge between the cost of debt to shareholders and the cost to undiversified, risk-averse managers. ...