The impact of security transaction income taxes on the stock market

• Main Author: 吳函霓
• Other Authors: 陳明進
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/97539847212473147682

碩士 === 國立政治大學 === 會計研究所 === 101 === In order to implement the principle of fair taxation, Ministry of Finance, R.O.C. address that gains from securities transactions shall be subject to income tax. The amendment is expected to have impacts on stock market returns of all companies. Using event study methods, this study examines the stock market reactions to the announcements of the legislature policy and explores the relation between the stock cumulative abnormal returns (CAR) of the amendment and firm characteristics. This study finds that the stock market reacts negatively (positively) when the news of the amendment are released (revised). The regression results indicate that CARs are negatively related with debt ratios and corporate growth; positively related with corporate size.