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Stock Market Reactions To the Tax Reform Act of 1986: an Analysis of the Agribusiness Industry

Author

Listed:
  • Timothy H. Mills

    (Eastern Illinois University)

  • Clyde L. Posey

    (Louisiana Tech University)

  • Dwight C. Anderson

    (Louisiana Tech University)

Abstract

This study assesses the impact of tax legislation on the agribusiness industry by examining security price behavior at major stages in the development of the Tax Reform Act of 1986. The findings of the study indicate that investors in agribusiness firms responded negatively to proposed tax changes as the legislation evolved. The market reaction to the legislative developments indicates that tax-driven investment in the agribusiness industry will be significantly reduced .

Suggested Citation

  • Timothy H. Mills & Clyde L. Posey & Dwight C. Anderson, 1994. "Stock Market Reactions To the Tax Reform Act of 1986: an Analysis of the Agribusiness Industry," Public Finance Review, , vol. 22(2), pages 222-238, April.
    • Handle: RePEc:sae:pubfin:v:22:y:1994:i:2:p:222-238
    DOI: 10.1177/109114219402200204
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    References listed on IDEAS

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    Cited by:

    1. Casey, K. Michael & Dickens, Ross N., 2000. "The effects of tax and regulatory changes on commercial bank dividend policy," The Quarterly Review of Economics and Finance, Elsevier, vol. 40(2), pages 279-293.

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