| Summary: | 碩士 === 國立中興大學 === 應用經濟學系所 === 104 === This study focuses on the ‘integrated housing and land taxation’ passed by the Legislative Yuan at the third reading on June 5, 2015 as the declaration day as well as the event day by the event study method, and to determine if the taxation act negatively affects Taiwan’s listed construction stock prices.
Meanwhile, a comparative analysis was carried out by grouping the three groups of construction companies listed in Taiwan, namely top 10, mid 28 and bottom 10 in terms of 2014 annual revenues and capital to identify the group most affected.
The outcome shows the construction stock prices on the declaration day responded to the event with negative cumulative abnormal returns whereby 28 and 20 out of 48 samples demonstrated negative and positive cumulative abnormal returns, respectively. The negative return rate was 58%. The state of negative returns during the entire event term proves that the 48 samples indicate that the integrated housing and land taxation is a taxation policy rather than tax relief.
Furthermore, the results show a significant disparity between maximum and minimum cumulative abnormal returns of the bottom 10, which implies returns were attainable by buy-and-hold or short selling of the bottom 10 depending on the point in time.
Therefore, the results of this study has identified that the implementation of the integrated housing and land taxation enacted by the government results in a negative impact on the Taiwan’s listed construction stock prices, and may provide stock market investors attain abnormal returns by selecting the correct date and analysis.
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