...Benjamin P. Yost ABSTRACT I study the effects of CEOs' unrealized capital gains tax liabilities (tax burdens) on corporate risk-taking. Recent work suggests that high tax burdens discourage CEOs from selling stock. I hypothesize that this causes the executives to become overexposed to firm...

... and TSII_CL) and to classify a larger number of institutions than the TSII_IAPD approach. Second, we find that our measure of tax-sensitive investors dominates measures based on legal type in analyses where capital gains taxes are salient. Our measure explains more variation in portfolio rebalancing...