The Relationship between Stock price and Taxation of call warrant
| Autor: | LO BAI-CHING, 羅白卿 |
|---|---|
| Rok vydání: | 2008 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 96 First of all, this paper explains call warrants and explains the situation with regards the issuance of warrants and related taxation regulations in the ROC. Then, it studies the influence of specific call warrant taxation disputes on stock value. Civil and governmental disputes can usually be resolved through the three levels of executive, judicial, and legislative branches of government. However because the ROC’s Ministry of Finance does not consent to the use of executive interpretation, call warrant taxation disputes can only be handled through judicial action or by amendments to law by the Legislative Yuan. In addition to the study of actual evidence of taxation of listed financial and securities stocks that issue call warrants, this paper divides the samples into financial stocks and securities stocks for a more detailed study. The results of the study of actual judicial proceedings shows that in the eight judgments disclosed in newspapers, the stock value of the financial and securities stocks were not significantly affected by the results of the administrative proceedings, regardless of whether the securities trader won or lost. However, after omitting financial holdings type stocks, it was concluded that securities type stocks were significantly affected by results that went against the trader. This shows that securities type stocks are more affected by a losing result in administrative proceedings than financial holdings type stocks. Analysis was done on the important events in the process of amending the law on call warrant taxation, and six events are listed. Of these, when the initial bill was rejected by the Legislative Yuan, the market results were different than expected with the stock price of financial securities stocks showing significant negative accumulated abnormal returns. Call warrant taxation law amendments have been before the Legislative Yuan for six years, and each session has listed it as important legislation. However, each bill died before being seriously considered, so the market seemingly did not expect the amendment bills to be passed any time soon. Then, on 14 June 2007, the Legislative Yuan passed an addition to Article 24-2 of the Income Tax Law on the third reading. Abnormal returns and accumulated abnormal returns were both significant features of the amendment, reflecting the different expectations that investors had for the success of the amendment. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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