Nathan Goldman, associate professor of accounting, co-authored a study that found executives are more likely to increase their profits from insider trading when individual state income taxes go up.
“Executive contracts generally don’t get renegotiated when tax rates change,” said Goldman. “We wanted to see if there was a relationship between increased tax rates and executives effectively increasing their compensation by engaging in more insider trading – which can pose risks for their companies and may or may not be legal.”
Read more on WRAL TechWire and Forbes.
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