Tax Exemption and Stock Return-Implementation of Alternative Minimum Tax
碩士 === 中原大學 === 會計研究所 === 99 === The Alternative Minimum Tax Act (AMT), drafted by the Executive Yuan on August 30, 2005 and passed its third reading in the Legislative Yuan on December 12 the same year, was implemented on January 1, 2006. AMT regulated specifically minimum tax burden representing...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2011
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| Online Access: | http://ndltd.ncl.edu.tw/handle/2vb667 |
| Summary: | 碩士 === 中原大學 === 會計研究所 === 99 === The Alternative Minimum Tax Act (AMT), drafted by the Executive Yuan on August 30, 2005 and passed its third reading in the Legislative Yuan on December 12 the same year, was implemented on January 1, 2006. AMT regulated specifically minimum tax burden representing a new era in Taiwan’s income tax history. This study uses event study to ascertain the existence of cumulative abnormal returns throughout four critical dates relating to the AMT. Through the analysis of the differences in the corporate tax rate under AMT, this study investigates the impact of AMT on stock prices.
Empirical evidences support this study’s hypothesis that corporations who enjoyed relatively more favorable tax rates have greater negative impact on stock prices under AMT. The results of multiple regression analysis of cumulative abnormal returns also confirm that AMT event dates have significantly greater negative cumulative abnormal return for corporations enjoyed favorable tax rates, and the negative impacts are positively related to the level preferable tax treatment.
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