The Resource Do tax sensitive investors liquidate appreciated shares after a capital gains tax rate reduction?

Do tax sensitive investors liquidate appreciated shares after a capital gains tax rate reduction?

Label
Do tax sensitive investors liquidate appreciated shares after a capital gains tax rate reduction?
Title
Do tax sensitive investors liquidate appreciated shares after a capital gains tax rate reduction?
Creator
Subject
Language
eng
Summary
Using data on institutional investors' portfolio composition before and after the capital gains tax rate cut in the Taxpayer Relief Act of 1997, the authors find evidence that, relative to less tax sensitive institutional investors, tax sensitive institutional investors are more willing to sell appreciated equity in response to the rate cut. Further, the reduction in value invested in appreciated equity appears to be lasting, consistent with the tax rate cut lowering tax sensitive investors' impediments to optimally balancing their portfolios. These results provide direct evidence of a capital gains tax lock-in effect
Citation source
In: National tax journal. - Washington. - Vol. 65 (2012),
http://library.link/vocab/creatorName
  • Chyz, J.A
  • Zhen Li, O
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • capital gains tax
  • tax rate
  • portfolio investment
Label
Do tax sensitive investors liquidate appreciated shares after a capital gains tax rate reduction?
Instantiates
Publication
Label
Do tax sensitive investors liquidate appreciated shares after a capital gains tax rate reduction?
Publication

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