We investigate the link between firm size and risk-taking among financial institutions during the period of 1998-2008 and make three contributions. First, size is positively correlated with risk-taking measures even when controlling for other observable firm characteristics, such as market-to-book value ratio, corporate governance, and ownership structure. This is consistent with the notion that "too-big-to-fail" policies distort the risk incentives of financial institutions.Second, a simple decomposition of the primary risk measure, the Z-score, reveals that financial firms engage in excessive risk-taking mainly through increased leverage. Third, we find that bank corporate governance measured as the median director dollar stockholding has a substantial impact on reducing firms' risk-taking.

Using panel data on U.S. public firms, we document a positive effect of board independence on corporate innovation. This effect is concentrated in firms that are larger in size, in the non technical industries, facing less product market competition, and using more debt, where managers are more likely to be excessively risk averse. We establish causality of board inde pendence on innovation using a difference-indifference approach that exploits an exogenous shock to board composition, namely, the mandate of a majority of outside directors on compa ny boards by NYSE and NASDAQ in response to the passage of Sarbanes-Oxley Act in 2002. We further examine incentive compensation as a possible mechanism. We show that firms with more independent boards use more equity-based compensation, especially stock options, to promote managerial risk-taking. * Statisticalsignificanceatthe10%leveL ** Statistical significance at the 5% levels. *** Statistical significance at the 1% level. * Statistical significance at the 10% level. ** Statistical significance at the 5% levels. *** Statistical significance at the 1% level. * Statistical significance at the 10% level. ** Statistical significance at the 5% level.

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a b s t r a c tHuman-caused biodiversity loss is a global problem, large carnivores are particularly threatened, and the tiger (Panthera tigris) is among the world's most endangered large carnivores. The South China tiger (Panthera tigris amoyensis) is the most critically endangered tiger subspecies and is considered functionally extinct in the wild. The government of China has expressed its intent to reintroduce a small population of South China tigers into a portion of their historic range as part of a larger goal to recover wild tiger populations in China. This would be the world's first major tiger reintroduction program. A free-ranging population of 15-20 tigers living in a minimum of 1000 km 2 of habitat was identified as a target. We assessed summer and winter habitat suitability of two critical prey species, wild boar (Sus scrofa) and Sika deer (Cervus nippon), using GIS spatial models to evaluate the potential for tiger reintroduction in one likely candidate site, the 1100 km 2 Hupingshan-Houhe National Nature Reserve complex in Hunan and Hubei Provinces, China. Our preliminary analysis estimates that for wild boar, potential summer and winter habitat availability is 372-714 km 2 and 256-690 km 2 , respectively, whereas for Sika deer, potential summer and winter habitat availability is 443-747 km 2 and 257-734 km 2 , respectively. Our model identifies potential priority areas for release and restoration of prey between 195 and 790 km 2 with a carrying capacity of 596-2409 wild boar and 468-1929 Sika deer. Our analysis suggests that Hupingshan-Houhe could support a small population of 2-9 tigers at a density of 1.1-1.2 tigers/ 100 km 2 following prey and habitat restorations. Thus, current habitat quality and area would fall short of the target recovery goal. We identify major challenges facing a potential tiger reintroduction project and conclude that restoring the habitat and prey base, addressing concerns of local people, and enhancing coordination across park boundaries are significant challenges to meeting the broader goals of supporting a reintroduced wild tiger population. Tiger range states have committed to doubling the world's wild tigers by 2022. The results of this study have implications for China's commitment to this goal and for the future of tiger and other large carnivore reintroduction efforts in Asia and globally.

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