Using panel data from 23 developed countries over the 2001-2011 period and employing the Arellano-Bover/Blundell-Bond dynamic panel estimation technique, we show that the source country capital gains tax has a negative and statistically significant impact on foreign portfolio equity holdings. On...

The U.S. tax law equates the tax rate on dividends and long-term capital gains on stock owned by U.S. citizens and residents. However, the taxation of these two types of rewards in the hands of foreign portfolio investors remains dramatically different from each other, with the capital gain...

Despite their impressive market success, investment certificates' benefits are puzzling from both a theoretical and an empirical viewpoint. Previous research analyzed portfoliotheoretical issues, mispricing patterns, and counterparty risk. This work highlights the impact of taxation, which has...

Co-investment, often seen as a remedy for agency problems, may incentivize managers to cater to own preferences. We provide evidence that mutual fund managers with considerable co-investment stakes alter risk-taking decisions to prioritize their own tax interests. By exploiting the enactment of...