Tax-loss Selling and the Turn-of-the-Year Effect

2003 ◽  
Author(s):  
Qinglei Dai
Keyword(s):  
2019 ◽  
Vol 18 (1_suppl) ◽  
pp. S35-S58 ◽  
Author(s):  
Harshita ◽  
Shveta Singh ◽  
Surendra S. Yadav

Covering 20 years (1995–2015), the article ascertains the presence of the month-of-the-year effect in the Indian stock market, for the raw returns series as well as after adjusting for non-linearities of the market. Whether the effect is the same for portfolios of different sizes and values is also ascertained. The threshold generalised autoregressive conditionally heteroskedastic (TGARCH) model is employed to address non-linearity. The results suggest the presence of higher returns in November/December at the index level. Further, only firms with a size smaller than the average exhibit seasonality in the form of the April/May and November/December effect. The value-sorted portfolios exhibit weaker evidence of the December effect. Tax-loss selling, window dressing and behavioural aspects seem to provide the explanation. JEL Classification: C58, G14


1993 ◽  
Vol 17 (1) ◽  
pp. 131-144 ◽  
Author(s):  
Timothy J. Brailsford ◽  
Stephen A. Easton
Keyword(s):  
Tax Loss ◽  

2003 ◽  
Vol 78 (1) ◽  
pp. 297-325 ◽  
Author(s):  
Leslie Hodder ◽  
Mary Lea McAnally ◽  
Connie D. Weaver

This paper identifies tax and nontax factors that influence commercial banks' conversion from taxable C-corporation to nontaxable S-corporation from 1997 to 1999, after a 1996 tax-law change allowed banks to convert to S-corporations for the first time. We find that banks are more likely to convert when conversion saves dividend taxes, avoids alternative minimum taxes, and minimizes state income taxes. Banks are less likely to convert when conversion restricts access to equity capital, nullifies corporate tax loss carryforwards, and creates potential penalty taxes on unrealized gains existing at the conversion date. Banks with significant deferred tax assets are less likely to convert, presumably because the write-off of deferred taxes at conversion decreases regulatory capital and exposes the bank to costly regulatory intervention. We also investigate the strategic choices banks make before converting to S-corporations. Converting banks alter their capital structures, deliberately sell appreciated assets, and strategically set dividends to augment net conversion benefits.


2017 ◽  
Vol 93 (4) ◽  
pp. 101-125 ◽  
Author(s):  
Inga Bethmann ◽  
Martin Jacob ◽  
Maximilian A. Müller

ABSTRACT Tax regimes treat losses and profits asymmetrically when profits are immediately taxed, but losses are not immediately refunded. We find that treating losses less asymmetrically by granting refunds less restrictively increases loss firms' investment: A third of the refund is invested and the rest is held as cash or returned to shareholders. However, the investment response is driven primarily by firms prone to engage in risky overinvestment. Consistent with the risk of misallocation, we find a delayed exit of low-productivity loss firms receiving less restrictive refunds, indicating potential distortion of the competitive selection of firms. This distortion also negatively affects aggregate output and productivity. Our results suggest that stimulating loss firms' investment with refunds unconditional on their future prospects comes at the risk of misallocation. JEL Classifications: G31; H21; H25.


2020 ◽  
Vol 98 (Supplement_2) ◽  
pp. 27-27
Author(s):  
Jane A Parish ◽  
Kalisha C Yankey ◽  
Libby S Durst

Abstract Optimal use of native warm-season grasses in pasture systems involves stocking grazing livestock at suitable rates. The study objective was to evaluate forage nutritive value and heifer ADG at two stocking rates on mixed-sward pastures of big bluestem (Andropogon gerardi Vitman), little bluestem (Andropogon scoparius), and indiangrass (Sorghastrum nutans L.). Pastures (3 replications) were stocked for 56 d during June and July in 2 yr with crossbred (Bos taurus) heifers (n = 24 heifers/year) stratified by initial BW (288.3 ± 1.7 kg) to one of two continuous stocking rates: 1.9 heifers/ha (HIGH) and 1.2 heifers/ha (LOW). Mean forage nutritive values on a DM basis were not different between HIGH and LOW stocking rates, respectively, for CP (7.0 ± 0.2% vs 6.7 ± 0.2%; P = 0.27), ADF (41.0 ± 0.6 vs. 41.4 ± 0.6; P = 0.64), NDF (69.9 ± 0.5 vs. 68.7 ± 0.5; P = 0.09), or relative feed value (RFV) (76.0 ± 1.0 vs. 76.9 ± 1.0; P = 0.53). There was a year effect (P < 0.01) and stocking rate x day effect (P < 0.01) for TDN. At LOW, TDN decreased from day 0 to day 28 (P = 0.02) and day 28 to day 56 (P = 0.02). At HIGH, TDN decreased (P < 0.01) from day 0 to day 28 but remained steady until day 56 (P = 0.21). There was a stocking rate x day interaction (P < 0.01) with ADG: LOW day 28 to 56 (1.20 ± 0.08 kg/day), HIGH day 0 to 28 (0.89 ± 0.08 kg/day), HIGH day 28 to 56 (0.44 ± 0.08 kg/day), and LOW day 0 to 28 (0.30 ± 0.08 kg/day). Further assessment of cattle ADG using more divergent stocking rates and plant persistence measures is warranted to inform ideal native grass stocking rate recommendations.


Sign in / Sign up

Export Citation Format

Share Document