Market Effect of Dividend Differentiated Tax Reduction Policy
- DOI
- 10.2991/978-94-6463-030-5_67How to use a DOI?
- Keywords
- Dividend; Individual Income Tax; Market Response
- Abstract
In September 2015, China issued a differentiated tax reduction policy for corporate dividends. In this paper, we employ the Modified Event Study Methodology to study the response of China’s capital market to the dividend differentiated tax reduction policy in 2015. The empirical results show that in the event window period, the cumulative raw return of the whole market is significantly positive, indicating that the differentiated tax reduction policy is regarded as good news by investors. We further find that compared with companies with weak dividend ability, low dividend level, and high stock liquidity, companies with solid dividend ability, high dividend level and low stock liquidity have a better market response. The cumulative raw return is higher. By observing the market reaction to the policy release, this paper provides new empirical evidence for the effectiveness of China’s dividend tax policy.
- Copyright
- © 2023 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Qianwei Ying AU - Mingjuan Song PY - 2022 DA - 2022/12/20 TI - Market Effect of Dividend Differentiated Tax Reduction Policy BT - Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022) PB - Atlantis Press SP - 669 EP - 677 SN - 2589-4919 UR - https://doi.org/10.2991/978-94-6463-030-5_67 DO - 10.2991/978-94-6463-030-5_67 ID - Ying2022 ER -