Stock Market Reactions to Legislated Tax Changes: Evidence from the United States, Germany, and the United Kingdom

We study the effect of tax policy on stock market returns in the US, Germany, and the UK using GARCH models and a unique daily dataset of legislative tax changes during the pe-riod 1978 to 2018. We find that days of discretionary tax legislation during all stages of the process often matter for retu...

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Bibliographic Details

Published in:	MAGKS - Joint Discussion Paper Series in Economics (Band 47-2020)
Main Authors:	Hayo, Bernd, Mierzwa, Sascha
Format:	Article
Language:	English
Published:	2020
Subjects:	United Kingdom income tax Wirtschaft indirect tax Germany legislative tax changes business tax United States Fiscal policy stock markets Economics
Online Access:	PDF Full Text
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