Plausibly Exogenous [1926] - Stock Options (05/12/2025)

LHS Variable
Risk-taking

RHS Variable
Executive stock options

Source of Exogenous Variation
Institutional features of multiyear compensation plans, which generate two distinct types of variation in the timing of when large increases in new at-the-money options are granted

- Shue and Townsend (2017), “How do quasi‐random option grants affect CEO risk‐taking?”