“…While the majority of studies suggest that performance-based pay amplifies executive risk taking (e.g., Coles, Daniel, & Naveen, 2006;Rajgopal & Shevlin, 2002;Shue & Townsend, 2017), some studies find opposite results (e.g., Tosun, 2016), or even no relationship (e.g., Hayes et al, 2012;Mehran, 1995;Yermack, 1995). We suggest that partially explaining these somewhat mixed findings is the fact that the effectiveness of performance-based pay in inducing CEO risk taking likely varies depending upon a CEO's attitude toward risk (Wowak & Hambrick, 2010), which is consistent with upper echelon and behavioral finance research.…”