This paper exploits an unusually powerful setting to explore a choice many individual investors face regularly the decision to sell today or postpone selling until lower rates are available in the future. We examine trading volume and stock returns around the 1998 reduction in the holding period...

This paper provides a reconciliation of many of the market anomalies documented in prior literature. While previous papers examined four or fewer anomalies, this paper utilizes regression analysis to reconcile eleven prevalent anomalies simultaneously. The major results of this paper are as...

This paper examines the impact of capital gains taxes on equity pricing. Examining three-day cumulative abnormal returns for quarterly earning announcements from 1983-1997, we present evidence consistent with shareholders' capital gains taxes affecting stock price responses. To our knowledge,...

This paper comprehensively reviews the Accounting for Income Taxes (AFIT). It begins by identifying four distinctive aspects of AFIT and briefly covering the rules surrounding AFIT. It then reviews the existing studies in detail and offers suggestions for future research. We emphasize the...

We compare the characteristics of US GAAP earnings for US firms with reconciled earnings for non-US firms cross listing on US markets. We find that the reconciled earnings for non-US firms differ systematically from US GAAP earnings for US firms, and are characterized by more evidence of...

The Jobs and Growth Tax Relief Reconciliation Act of 2003 reduces the maximum statutory personal tax rate on dividends from 38.1 percent to 15 percent. This study analyzes dividend declarations in the quarters surrounding passage. We find dramatic increases in regular dividends and special...

This paper provides empirical evidence that underreaction in financial analysts' earnings forecasts increases with the forecast horizon, and the paper offers a rational economic explanation for this result. The empirical portion of the paper evaluates analysts' responses to earnings-surprise and...

This paper provides evidence consistent with shareholders' personal tax incentives affecting stock prices and trading volume. On June 24, 1998, the marginal tax rate on capital gains was reduced from 28 percent to 20 percent for individual investors holding shares between 12 and 18 months. This...

Capital gains tax rates vary with the length of time that individuals hold property. This paper investigates whether these holding period incentives to defer (accelerate) the sale of appreciated (depreciated) property affect the prices of securities entering the Standard amp; Poor's 500 Stock...

1998 legislation reduced the minimum holding period for individuals to receive the most favorable long-term capital gains tax rate from 18 months to 12 months. This paper empirically documents the extent to which the reduction affected firm-specific trading volume and share prices. To our...