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Investor Reaction to the International Provisions of the Tax Cuts and Jobs Act of 2017

K.C. Lin et al.

Advances in Taxation2023https://doi.org/10.1108/s1058-749720230000030001book-chapter
AJG 2ABDC B
Weight
0.62

What the paper says

We examine the stock market reaction to the Tax Cuts and Jobs Act (TCJA) of 2017 during its enactment process, focusing on its international provisions. Consistent with extant evidence, we find lower returns for high-foreign-activity firms, indicating a negative market reaction to the international provisions overall. Considering specific international provisions, we find that the market reaction was more positive (negative) for firms likely most affected by the shift to a quasi-territorial system for taxing foreign earnings (the transition tax on existing unrepatriated earnings, the tax on global intangible low-taxed income, and/or the base erosion and antiabuse tax) than for other firms. Our findings imply that investors are able to disentangle the economic implications of complex and interactive tax law changes.

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https://doi.org/https://doi.org/10.1108/s1058-749720230000030001

Or copy a formatted citation

@article{k.c.2023,
  title        = {{Investor Reaction to the International Provisions of the Tax Cuts and Jobs Act of 2017}},
  author       = {K.C. Lin et al.},
  journal      = {Advances in Taxation},
  year         = {2023},
  doi          = {https://doi.org/https://doi.org/10.1108/s1058-749720230000030001},
}

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Investor Reaction to the International Provisions of the Tax Cuts and Jobs Act of 2017

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Evidence weight

0.62

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.69 × 0.4 = 0.27
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.