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Broker-Dealers and Executive Private Benefits: Evidence from Tax-Saving Stock Gifts

By Ben Charoenwong Associate Professor of Finance at INSEAD, Singapore Wednesday, January 15, 2025, 2 pm – 3.30 pm Venue: Room 821 at Sasin School of Management Register here to reserve your seat Abstract: This study provides a new perspective on the intersection of financial intermediary oversight and managerial self-dealing. In the early 2010s, regulatory changes increased oversight of BD internal controls, introducing stricter external scrutiny of their systems and procedures for handling client transactions. We document a significant decline in the backdating of insider stock gifts-a practice used by executives to inflate the value of charitable donations and garner large tax benefits-particularly for transactions processed through BDs previously exempt from oversight. This finding highlights the critical role of intermediaries in curbing financial misconduct and offers broader insights for regulatory design aimed at enhancing external governance mechanisms.   For more information please contact +66-2218-4000 ext. 83893 or researchseminar@sasin.edu.