Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)

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Market Effect of Dividend Differentiated Tax Reduction Policy

Authors
Qianwei Ying1, Mingjuan Song1, *
1Business School, Sichuan University, Chengdu, China
*Corresponding author. Email: 751142890@qq.com
Corresponding Author
Mingjuan Song
Available Online 20 December 2022.
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.

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Volume Title
Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)
Series
Atlantis Highlights in Intelligent Systems
Publication Date
20 December 2022
ISBN
978-94-6463-030-5
ISSN
2589-4919
DOI
10.2991/978-94-6463-030-5_67How to use a DOI?
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

risenwbib
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  -