The Effects of the One-Year Extension of the 50% Tax Rate Cut of the Land Value Increment Tax on Listed Construction Companies.
Date Issued
2004
Date
2004
Author(s)
Chien, Yin-Ying
Abstract
Abstract
Graduate Institute of Accounting
National Taiwan University
Title : The Effects of the One-Year Extension of the 50% Tax Rate Cut of the Land Value Increment Tax on Listed Construction Companies.
Name : Chien, Yin Ying
Advisor : Lin, Suming, Ph.D.
Month/Year : June, 2004
Although there were heavy disputes over the extension of the 50% tax rate cut of the land value increment tax, the legislative Yuan finally passed the proposal to extend such tax privilege one more year till the end of January 2005. This study attempts to investigate whether the one-year extension of tax privilege would result in the positive cumulative abnormal volume (CAV) of the listed construction companies as well as the relation between CAV and the following five company characteristic variables: debt ratio, house built to sell/total assets ratio, land and construction in process/total assets ratio, market value/book value ratio, and stock’s closing prices on the event day. This study finds the following results. First, during the event dates (from 2003/12/29 to 2004/01/07), the average cumulative abnormal volume is 11.99%, which is significantly positive. Second, those listed construction companies with higher land and construction-in-process/total assets ratio had lower cumulative abnormal volume. Third, as the empirical evidence indicates, the debt ratio, house built to sell/total assets ratio, market value/book value ratio and stock’s closing prices were not related to the cumulative abnormal volume.
Subjects
事件研究法
土地增值稅
累積異常成交量
the land value increment tax
event study
cumulative abnormal volume
Type
other