Long‐term capital gains taxes and stock prices: Evidence from India
研究了2018年印度提高长期资本利得税税率后股票价格的反应，发现即使个人持股比例很低（18.5%），该税种仍显著影响股价，挑战了以往基于美国高个人持股比例研究的结论。
Abstract Prior studies of the relevance of long‐term capital gains for stock prices rely on the evidence from the 1997 tax cut in the United States. The key component of the tax‐sensitive ownership in these studies is individual ownership; its average is reported to be as high as 66.7%. The sharp increase in institutional ownership over the last two decades to more than 80% and the concomitant decline in individual ownership raises the question of whether taxes on long‐term capital gains are still relevant for stock prices. We examine stock price responses to the 2018 increase in the long‐term capital gains tax rate in India, a market where individual stock ownership is only 18.5%. Overall, the evidence provides strong support for the continued relevance of long‐term capital gains taxes for stock prices despite individual investors accounting for only a small portion of the stock ownership.