Volume for winners and losers: taxation and other motives for stock trading

Article Abstract:

Winners and losers in the game of stock trading and transfer are discussed; winners are traders whose stocks have increased in value, while loser stocks are those that have failed to increase (or have, in fact, decreased) in value.The examination of trading activities for both groups of stock indicates that: the capital gains tax is often the incentive behind trading, turnover is higher for winner stocks (despite taxation predictions), and that increased turnover for the months of December and January is indicative of the tax incentives behind such trading. Although higher taxes can influence turnover, stock trading itself is motivated more by other factors.

Analysis, Taxation, Economic aspects, Securities, Capital gains tax, Stock transfer, Securities taxes

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Anomalous price behavior around repurchase tender offers

Article Abstract:

This paper reports anomalous price behavior around repurchase tender offers. Buying shares before the expiration date of a repurchase tender offer and tendering to the firm produces, on average, abnormal returns of more than 9 percent over a period shorter than one week. In addition, we find that repurchasing companies experience economically and statistically significant abnormal returns in the two years after the repurchase. The upward price drift is mainly caused by the behavior of the small firms in the sample. (Reprinted by permission of the publisher.)

Research, Finance, Prices and rates, Corporations, Stock prices, Corporate finance

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Stock repurchases in Canada: performance and strategic trading

Article Abstract:

Research using data from the 1990s indicates that the Canadian stock exchange discounts information in announcements of stock repurchases, similar to what occurred in the US during the 1980s. Findings also include mispricing affects completion rates, and price movements affect trade volume.

Canada, Capital Management-Stock Repurchase, Statistical Data Included, Management, Stock-exchange, Stock exchanges

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