IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v45y2012i5p26-49.html
   My bibliography  Save this article

Impact of the Securities Transaction Tax on Stock Markets

Author

Listed:
  • Na Wang
  • Dong Li

Abstract

This article investigates the effects of the securities transaction tax (STT) on market trading volume and return volatility using Chinese data. We found strong evidence to support a negative relationship between STT and market trading volume. The shrinking of the tax base casts doubt on the idea of using STT to increase government revenue. Furthermore, the impact of STT on market volatility is mixed. Examination of dually listed stocks in mainland China and Hong Kong further corroborates these findings.

Suggested Citation

  • Na Wang & Dong Li, 2012. "Impact of the Securities Transaction Tax on Stock Markets," Chinese Economy, Taylor & Francis Journals, vol. 45(5), pages 26-49, September.
    • Handle: RePEc:mes:chinec:v:45:y:2012:i:5:p:26-49
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=KX1Q9426713M54Q1
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hayashida, Minoru & Ono, Hiroyuki, 2016. "Tax reforms and stock return volatility: The case of Japan," Journal of Asian Economics, Elsevier, vol. 45(C), pages 1-14.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:45:y:2012:i:5:p:26-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.