We examine the prevalence and determinants of CEOs' use of tax-advantaged trusts prior to their firm's IPO. Twenty-three percent of CEOs use tax-advantaged pre-IPO trusts, and share transfers into tax-advantaged trusts are positively associated with CEO equity wealth, estate taxes, and dynastic...

Consistent with the uncertainty of research and development's future benefits, prior accounting studies hypothesize and find a positive relation between research and development (Ramp;D) and the variability of future earnings. However, prior research has assumed constant marginal productivity of...