Texas State University
McCoy College of Business.Research Insights

Jon Underwood

Assistant Professor of Accounting, Department of Accounting Faculty profile

1 item

July–September 2026

Illustration of an executive in a wood-paneled office weighing a stock certificate secured by a padlock against a diagram of shares exchanged for a stack of cash from a bank.
Accounting3 min read

CEOs Facing Large Capital Gains Taxes Pledge More Shares as Loan Collateral

Executives sitting on big unrealized gains borrow against their stock instead of selling it, and the bigger the tax bill they would face, the more they pledge. Boards seem to know this: firms with high-tax-burden CEOs resisted antipledging rules and paid more when they adopted them.

Jon Underwood

One research-backed idea, every Thursday

Short summaries of new faculty work, with what it means for managers.