| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 92 === Implicit tax reflects the extent (if any) to which tax-favored assets bear lower pretax returns than tax-disfavored assets of similar risk. The objective of this study is to examine the relationship between tax and pretax stock returns based upon implicit tax theory. In addition, we also explore the impact of the implementation of the imputation tax system on the size of implicit tax.
The sample of this study consists of firms listed in the Taiwan Stock Exchange from 1993 through 2002. The empirical results in this research are summarized as follows:
1、Before implementation of the imputation tax system, firms' dividend yields have a positive impact on common stocks' pretax returns, consistent with the implicit tax theory. We further conduct additional analyses to control for the information effect, and firms' individual risks, and the results remain unchanged.
2、 Without the imputation tax credit, the implementation of the full imputation tax credit tax reduce on the size of implicit tax.
3、After implementation of the full imputation tax credit tax, a firms' imputation tax credit ratios have a negative impact on common stocks' pretax returns. Further, the level of local institutional and oversea ownerships are negatively associated with the size of the implicit tax. The results indicate that the imputation tax credit bears additional implicit tax.
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