Insider acquisitions of shares are supposed to align the interests of managers and shareholders. Thus, they are typically viewed as positive signals. However, if the transactions do not put insiders' wealth at risk, perhaps this conclusion is a bit premature. We focus on loan financing of...

This paper analyzes the relation between the capital structure of a firm and the tax benefits realized from the exercise of stock options. Theory suggests that firms with tax benefits from the exercise of stock options should carry less debt since tax benefits are a non-debt tax shield. We find...

This paper analyzes the characteristics and impact of loans made to executives for purposes of stock purchase, option exercise and relocation. We find that loans made to assist executives in purchasing stock or excercising options are larger and have higher interest rates than relocation loans....

This paper analyzes the relation between the capital structure of a firm and the tax benefits realized from the exercise of stock options. Theory suggests that firms with tax benefits from the exercise of stock options should carry less debt since tax benefits are a non-debt tax shield. We find...

This paper analyzes the characteristics and impact of loans made to executives for purposes of stock purchase, funding of options exercised and relocation. We find that loans made to assist executives in purchasing stock or exercising options tend to be larger and have higher interest rates than...

This paper analyzes the relation between the capital structure of a firm and the tax benefits realized from the exercise of stock options. Theory suggests that firms with tax benefits from the exercise of stock options should carry less debt since tax benefits are a non-debt tax shield. We find...