Tax Motivated Trading Strategies and Stock Performance around the Ex-Bonus Day and Ex-Rights Day
10 Pages Posted: 13 Oct 2012
Date Written: December 23, 2001
Abstract
Empirical evidence in India highlights extremely large positive abnormal performance on ex-bonus and ex-rights dates for equity. This paper argues that the tax regime can motivate trading strategies following around the ex-dates. The analysis also concludes that the tax regime can lead to significant positive abnormal performance if long-term investors are the equilibrium-price determining investors.
Suggested Citation: Suggested Citation
Srinivasan, Raghavan, Tax Motivated Trading Strategies and Stock Performance around the Ex-Bonus Day and Ex-Rights Day (December 23, 2001). IIM Bangalore Research Paper No. 179, Available at SSRN: https://ssrn.com/abstract=2160348 or http://dx.doi.org/10.2139/ssrn.2160348
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