The lock-in effect suggests that capital gains tax (CGT) creates a disincentive to sell appreciated stocks, as CGT is imposed once stocks are sold. A CGT rate decrease reduces the reluctance to sell appreciated stocks, thereby increasing the supply available for sale. Our study tests the lock-in...

This study examines whether, under a full dividend imputation system, companies defer income until tax changes beneficial to shareholders take effect. Using a sample of Australian listed companies, we find that companies manage earnings downwards via discretionary current accruals in the year...

This paper tests for managerial opportunism, specifically the backdating of executive options, in a market subject to IFRS accounting requirements. For a sample of 161 unscheduled options granted by Australian firms, we observe positive abnormal returns in the post-grant period. Consistent with...