The Impact of Introducing the Capital Gains Tax on Stock Market
| Autor: | Meng-Hsuan Lee, 李孟璇 |
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| Rok vydání: | 2013 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 101 The Legislative Yuan passed an amendment to the Income Tax Act on 25 July 2012 that introduced a capital gains tax on the sale of securities which came into effect on 1 January 2013. One year after the amendment passed, the Legislative Yuan passed a revision of Income Tax Act on 26 June 2013, and the revision was retroactive to 1 January 2013. This study examines the impact on stock prices from ten events related to the introduction of capital gains tax on securities and finds out the reflection of capitalization effect during the event 1 (Premier Chen said he would keep an open mind to levying capital gains tax), the event 2 (Capital gains tax became foremost item for taxation reform), the event 4 (The Executive Yuan approved capital gains tax proposal), the event 5 (Finance Minister Liu quit in tax dispute), the event 7 (The Legislative Yuan passed an amendment to the Income Tax Act), the event 8 (The Control Yuan reprimanded the Legislative Yuan and Ministry of Finance over capital gains tax). The stock prices fell when events related to the introduction of capital tax were pronounced, and rose when events related to the delay of capital tax were pronounced. This study then examines the relations between the firm’s characters and abnormal returns caused by the events, and the relations between the firm’s characters and trading volumes also. Results of the regression analysis are as follows (1) Firms with more native person investors experienced lower abnormal returns during the event 1 (Premier Chen said he would keep an open mind to levying capital gains tax) and the event 7 (The Legislative Yuan passed an amendment to the Income Tax Act). (2) Firms with more foreign entity investors experienced higher abnormal returns during the event 2 (Capital gains tax became foremost item for taxation reform). (3) Firms with lower dividend yield experienced higher abnormal returns during the event 2 (Capital gains tax became foremost item for taxation reform) and the event 4 (The Executive Yuan approved capital gains tax proposal), but lower abnormal returns during the event 10 (The Legislative Yuan passed a revision of Income Tax Act). (4) Securities industry experienced higher abnormal returns during the event 5 (Finance Minister Liu quit in tax dispute). (5) Trading volume increased more in firms with more native person investors during the event 1 (Premier Chen said he would keep an open mind to levying capital gains tax), the event 2 (Capital gains tax became foremost item for taxation reform), the event 4 (The Executive Yuan approved capital gains tax proposal), and the event 7 (The Legislative Yuan passed an amendment to the Income Tax Act). |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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