We examine the effect of personal taxes on CEOs’ decisions to sell their equity, controlling for diversification, managerial overconfidence, and other determinants. While CEOs frequently sell large amounts of their unrestricted firm equity, the tax burden associated with the sale significantly...

We examine the effect of personal taxes on CEOs' decisions to sell their equity, controlling for diversification, managerial overconfidence, and other determinants. While CEOs frequently sell large amounts of their unrestricted firm equity, the tax burden associated with the sale significantly...

We document frequent and large selling of equity by CEOs. Such selling is designed not simply to offset the current year grant of options and stock. We find that the tax burden associated with the sale and (various measures of CEO) overconfidence both decrease CEOs' propensity to sell their...

We examine how personal taxes affect CEOs' decision to sell their vested equity and compare it against diversification, managerial overconfidence and other determinants of CEOs' sale of equity. While CEOs frequently sell large amounts of their unrestricted firm equity, we find that the tax...