Abstract：
This study focuses on CEOs’ capital gains taxes to shed light on how CEOs’ personal tax incentives influence corporate misconduct. We find strong evidence that CEOs’ capital gains tax liabilities are negatively associated with corporate misconduct. The results remain robust after controlling for potential endogenous effects. The effect of CEO capital gains taxes on corporate misconduct is attenuated when more of the CEO’s wealth is outside the firm and is concentrated among firms facing greater ex ante litigation risk. Overall, our findings suggest that CEOs’ capital gains taxes discipline corporate misconduct.
Review of Accounting Studies
resource：https://doi.org/10.1007/s11142-026-09945-4
About the author：
Ma Zhiming is the Associate Dean and Professor of Accounting at Guanghua School of Management, Peking University. After receiving his PHD in accounting from Hong Kong University of Science and Technology, he joined Guanghua in 2014.