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Capital Gains (capital + gain)
Terms modified by Capital Gains Selected AbstractsURBAN-SYSTEM EVOLUTION ON THE FRONTIER OF THE ECUADORIAN AMAZONGEOGRAPHICAL REVIEW, Issue 4 2000Roy Ryder ABSTRACT. Like the North American frontier, Ecuador's Amazonian margin has advanced in periodic waves. But the impetus has been extremely varied, interlacing periods of socioeconomic crisis with times of prosperity. Recent events in eastern Ecuador confirm that urbanization is a fundamental component of frontier development in South America. The urbanization process is not a sign, however, of regional economic strength. Capital gains at the periphery are transferred to the nation's core region. Even the larger boom towns display little functional specialization; they are, instead, precariously dependent on employment in the public-service sector. Nonetheless, urban centers in the Ecuadorian Amazon continue to grow and to drain surrounding rural areas of younger and more educated individuals. [source] Capital gains tax and the capital asset pricing modelACCOUNTING & FINANCE, Issue 2 2003Martin Lally Abstract This paper develops a version of the Capital Asset Pricing Model that views dividend imputation as affecting company tax and assumes differential taxation of capital gains and ordinary income. These taxation issues aside, the model otherwise rests on the standard assumptions including full segmentation of national capital markets. It also treats dividend policy as exogenously determined. Estimates of the cost of equity based on this model are then compared with estimates based on the version of the CAPM typically applied in Australia, which differs only in assuming equality of the tax rates on capital gains and ordinary income. The differences between the estimates can be material. In particular, with a high dividend yield, allowance for differential taxation can result in an increase of two to three percentage points in the estimated cost of equity. The overall result obtained here carries over to a dividend equilibrium, in which firms choose a dividend policy that is optimal relative to the assumed tax structure. [source] Capital gains: expatriate adjustment and the psychological contract in international careersHUMAN RESOURCE MANAGEMENT, Issue 3 2009Arno Haslberger Abstract This paper argues that the notion of adjustment to careers involving international assignments needs to be developed further than the current literature reflects. An expatriate assignment is an expatriate's opportunity to build career capital and a company's opportunity to generate social and intellectual capital. The extent of the capital gains will depend considerably on the expatriate's adjustment during and after the assignment, which is influenced by the psychological contract. We argue that our understanding of the career impact of expatriation will be enhanced by a more refined picture of the adjustment that expatriates experience during the assignment and during repatriation. In particular, we examine adjustment as process rather than as event. We propose a broad conception of expatriate adjustment and its link to careers. © 2009 Wiley Periodicals, Inc. [source] Economic Analysis Of The Droit De Suite, The Artist's Resale RoyaltyAUSTRALIAN ECONOMIC PAPERS, Issue 4 2003J. D. Stanford Interest in the Droit de Suite, the artist's resale royalty, has been re-kindled by the decision of the European Union to introduce such a scheme to apply from 2006. The general nature of the Droit de Suite as an extension of copyright is discussed. The specific proposals for a Droit de Suite in Australia are analysed. Economic arguments support the sceptical view of the Droit de Suite. It is argued that the introduction of the Droit de Suite would be predicted to reduce sales of new paintings, that selling activity would move to jurisdictions which do not have a Droit de Suite and that artists would prefer to alienate their Droit de Suite by sale of a painting. The economic analysis is supplemented by an empirical study of art auction prices of 72 artists in Australia over the period 1973,1989 which reveals that the works few artists achieve a capital gain on sale in the secondary market re-inforcing the view that, if implemented, a Droit de Suite would provide payments to only a small number of artists who are likely to be in good economic circumstances. The burden of the Droit de Suite is shown to fall on the collector when selling paintings. The effect of the imposition of the Droit de Suite will be to lower the gain to collectors of paintings. It is concluded that the Australian proposal for the Droit de Suite is based on an inadequate analysis of the art market and would require a registration procedure for art works incurring heavy costs in relation to the funds available for distribution. [source] Shareholder Income Taxes and the Relation between Earnings and Returns,CONTEMPORARY ACCOUNTING RESEARCH, Issue 3 2005DAN S. DHALIWAL Abstract The purpose of this study is to investigate whether and how shareholder-level taxes affect earnings response coefficients (ERCs). Our tests indicate that when the tax rate on dividends increases, ERCs decrease for firms with high levels of dividend yield and whose marginal investor is likely to be an individual. For firms with high levels of share repurchase yield and whose marginal investor is likely to be an individual, an increase in dividend tax rate has no discernible effect on ERCs. These results are consistent with the notion that the tax penalty on dividends, relative to capital gains, reduces the earnings-return relation. [source] World Income Distribution and Tax Reform: What Tax Systems Do Low-Income Countries Need?DEVELOPMENT POLICY REVIEW, Issue 3 2003J. Ram Pillarisetti This article develops a new method for assessing relative direct tax burdens across all countries, treating the world as a single economic entity and assuming identical preferences across countries. Empirical results show that the new direct tax burden indices are significantly high in low-income countries in comparison with middle- and high-income countries. This article argues in favour of narrowing the base of income and capital gains tax in low-income countries and a long-term convergence of the tax burden levels across countries. Future research into tax reforms in low-income countries should focus simultaneously on economic growth, quality of life and the natural environment. [source] Financialization and the Role of Real Estate in Hong Kong's Regime of AccumulationECONOMIC GEOGRAPHY, Issue 2 2003Alan Smart Abstract: The greater dominance of finance in the global economic system is widely considered to have increased instability and created difficulties in constructing modes of regulation that could stabilize post-Fordist regimes of accumulation. Heightened competition and the discipline of global finance restrict the use of Fordist strategies that expand social wages to balance production and consumption. Robert Boyer suggested a model for a possible stable finance-led growth regime. His hypothesis is that once there are sufficient stocks of property in a nation, expenditures that are based on capital gains, dividends, interest, and pensions can compensate for diminished wage-based demand. We contend that the neglect of real estate is a serious limitation, since housing wealth is more significant than other forms of equity for most citizens, and thus that it fails to capture the impact of the perceptions and choices of ordinary citizens. We then argue that features of a finance-led regime of accumulation and a property-based mode of regulation appeared in Hong Kong relatively early. A case study of Hong Kong is used to extend Boyer's discussion, as well as to diagnose Hong Kong's experience for its lessons on the impact of such developments. [source] Tax-induced Dissimilarities Between Domestic and Foreign Mutual Funds in ItalyECONOMIC NOTES, Issue 2 2006Roberto Savona Using data from Italy over the period 1998,2002, this study investigates whether tax effects can account for differences in return patterns between domestic and foreign mutual funds, and if this dissimilarity translates into performance. The paper presents evidence that much of the difference between domestic and foreign funds is explained by the different tax systems. The asymmetry between the two groups, due to the fact that domestic funds are obliged to pay taxes on a daily basis while foreign funds are taxed when capital gains are collected, also affects performance. We prove that comparing pre-tax returns, Italian funds are virtually indistinguishable from their foreign counterparts in terms of risk-adjusted returns, while when comparing after-tax returns, foreign funds outperform. [source] Migration within England and Wales and the Housing MarketECONOMIC OUTLOOK, Issue 3 2005Article first published online: 27 JUL 200 Economic conditions exert a strong influence on regional migration. On the one hand, strong labour market conditions, as exemplified by low unemployment rates and high earnings, draw migrants into regions. On the other hand, strong housing market conditions can prevent movement since commuting may often be an alternative to migration. This can be thought of as giving rise to a migration equilibrium where high house prices choke off migration caused by strong labour market conditions. Expected capital gains in housing, however, can offset high levels of house prices, an effect ignored in previous literature. Migration can also be influenced more directly by the availability of housing relative to population without this being mediated through prices. This paper, by Gavin Cameron, John Muellbauer and Anthony Murphy, presents evidence on inter-regional net and gross migration between the regions of England and Wales that is broadly in accord with these expectations. [source] Capital gains taxation and shareholder wealth in takeoversACCOUNTING & FINANCE, Issue 2 2010Martin Bugeja H24; G32; G34 Abstract Before December 1999, the capital gains of shareholders who sold their shares into Australian takeovers have been taxable irrespective of payment method. Subsequently, shareholders can elect to rollover capital gains in equity takeovers. We examine the effect of this change on the association between target shareholder capital gains and bidder and target firm shareholder wealth. The results indicate that prior to the regulatory change, cash consideration results in higher target shareholder returns for non-taxation reasons. After the introduction of capital gains tax rollover relief, we find that target and acquiring firm shareholders earn lower returns when cash consideration is offered to shareholders with greater capital gains. [source] Capital gains tax and the capital asset pricing modelACCOUNTING & FINANCE, Issue 2 2003Martin Lally Abstract This paper develops a version of the Capital Asset Pricing Model that views dividend imputation as affecting company tax and assumes differential taxation of capital gains and ordinary income. These taxation issues aside, the model otherwise rests on the standard assumptions including full segmentation of national capital markets. It also treats dividend policy as exogenously determined. Estimates of the cost of equity based on this model are then compared with estimates based on the version of the CAPM typically applied in Australia, which differs only in assuming equality of the tax rates on capital gains and ordinary income. The differences between the estimates can be material. In particular, with a high dividend yield, allowance for differential taxation can result in an increase of two to three percentage points in the estimated cost of equity. The overall result obtained here carries over to a dividend equilibrium, in which firms choose a dividend policy that is optimal relative to the assumed tax structure. [source] Capital gains: expatriate adjustment and the psychological contract in international careersHUMAN RESOURCE MANAGEMENT, Issue 3 2009Arno Haslberger Abstract This paper argues that the notion of adjustment to careers involving international assignments needs to be developed further than the current literature reflects. An expatriate assignment is an expatriate's opportunity to build career capital and a company's opportunity to generate social and intellectual capital. The extent of the capital gains will depend considerably on the expatriate's adjustment during and after the assignment, which is influenced by the psychological contract. We argue that our understanding of the career impact of expatriation will be enhanced by a more refined picture of the adjustment that expatriates experience during the assignment and during repatriation. In particular, we examine adjustment as process rather than as event. We propose a broad conception of expatriate adjustment and its link to careers. © 2009 Wiley Periodicals, Inc. [source] Insolvency, tax and liquidation distributions: dividends, capital gains and the dead hand of the pastINTERNATIONAL INSOLVENCY REVIEW, Issue 2 2006John Duns Shareholders are normally entitled to the surplus, if any, which remains after a liquidator has paid off the company's creditors and discharged all of its outstanding liabilities. Surplus distribution to shareholders is an anticipated event in the liquidation of a solvent company. Shareholders in insolvent companies, by contrast, are likely to be pleasantly surprised to receive surpluses prior to the cancellation of failed investments. Taxation liabilities are likely to arise for the shareholders in both events,under independent and, to a degree, inconsistent regimes provided by the Income Tax Assessment Act 1936 (Cwth) (,ITAA36') and the Income Tax Assessment Act 1997 (Cwth) (,ITAA97'). This paper analyses Australian taxation of liquidation surpluses, noting historical factors and the approaches taken in four comparable tax jurisdictions. Company law applicable to liquidation surplus distributions is surveyed by way of introduction. Copyright © 2006 John Wiley & Sons, Ltd. [source] Personal Taxation in Firm Market Valuation: Theory and Test,ACCOUNTING PERSPECTIVES, Issue 1 2002ZENG TAO ABSTRACT In this paper, I extend Ohlson's 1995 firm market valuation model to incorporate personal taxes: the taxes on dividends and the taxes on capital gains. Without personal taxes, firm market value can be expressed as the present value of future benefits received by the shareholders (dividends, in this case). With personal taxes, the benefits received by the shareholders should be classified into three categories (due to their different tax treatments): dividends, share repurchases, and new share issues (i.e., contributed capital). The extended model shows the effects of personal taxation on firm market valuation: retained earnings are valued less than contributed stocks, both dividends taxes and capital gains taxes affect retained earnings valuation and firm market value, and firms choose cash distribution methods (paying dividends and repurchasing shares) to increase their retained earnings valuation, therefore increasing their market value. An empirical test using a sample from the Disclosure Select Canada and Financial Post Card data bases for the years 1995-98 supports these personal tax effects. [source] Portfolio selection on the Madrid Exchange: a compromise programming modelINTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH, Issue 1 2003E. Ballestero As a contribution to portfolio selection analysis, we develop a compromise programming approach to the investor's utility optimum on the Madrid Online Market. This approach derives from linkages between utility functions under incomplete information, Yu's compromise set, and certain biased sets of portfolios on the efficient frontier. These linkages rely on recent theorems in multi,criteria literature, which allow us to approximate the investor's utility optimum between bounds which are determined either by linear programming models or graphic techniques. Returns on 104 stocks are computed from capital gains and cash,flows, including dividends and rights offerings, over the period 1992,1997. The first step consists in normalizing the mean,variance efficient frontier, which is defined in terms of two indexes, profitability and safety. In the second step, interactive dialogues to elicit the investor's preferences for profitability and safety are described. In the third step, the utility optimum for each particular investor who pursues a buy,&,hold policy is bounded on the efficient frontier. From this step, a number of portfolios close to the investor's utility optimum are obtained. In the fourth step, compromise programming is used again to select one ,satisficing' portfolio from the set already bounded for each investor. This step is new with respect to previous papers in which compromise/utility models are employed. Computing processes are detailed in tables and figures which also display the numerical results. Extensions to active management policies are suggested. [source] WHAT DO WE KNOW ABOUT STOCK REPURCHASES?JOURNAL OF APPLIED CORPORATE FINANCE, Issue 1 2000Gustavo Grullon Stock repurchases by U.S. companies experienced a remarkable surge in the 1980s and ,90s. Indeed, in 1998, the total value of all stock repurchased by U.S. companies exceeded for the first time the total amount paid out as cash dividends. And the U.S. repurchase movement has gone global in the past few years, spreading not only to Canada and the U.K., but also to countries like Japan and Germany, where such transactions were prohibited until recently. Why are companies buying back their stock in such amounts? After dismissing the popular argument that stock repurchases boost earnings per share, the authors argue that repurchases serve to add value in two main ways: (1) they provide managers with a tax-efficient means of returning excess capital to shareholders and (2) they allow managers to "signal" to investors their view that the firm is undervalued. Returning excess capital is value-adding for two reasons: First, it helps prevent companies from pursuing growth and size at the expense of profitability and value. Second, by returning capital to investors, repurchases (like dividends) play the critically important economic function of allowing investors to channel their investment from mature or declining sectors of the economy to more promising ones. But if stock repurchases and dividends serve the same basic economic function, why are repurchases growing more rapidly? Part of the explanation is that, because repurchases are taxed as capital gains and dividends as ordinary income, repurchases are a more tax-efficient way of distributing excess capital. But perhaps even more important than their tax treatment is the flexibility that (at least) open market repurchases provide corporate managers-flexibility to make small adjustments in capital structure, to exploit (or correct) perceived undervaluation of the firm's shares, and possibly even to increase the liquidity of the stock, which could be particularly valuable in bear markets. For U.S. regulators, the growth in open market stock repurchases raises some interesting issues. Perhaps most important, companies are not required to (and rarely do) furnish their investors with details about a given program's structure, execution method, number of shares repurchased, or even its duration. Policy regulators (and corporate executives as well) should consider some of the benefits provided by other systems, notably Canada's, which provide greater transparency and more guidelines for the repurchase process. [source] Why do Underwriters Charge Low Underwriting Fees for Initial Public Offerings in Taiwan?JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2006Hsuan-Chi Chen Abstract:, In Taiwan, underwriting fees for initial public offerings (IPOs) are extremely low compared to fees in other countries. From 1989 to 1999, the average underwriting fee for IPOs in Taiwan is 0.99%,far below the regulatory limit. Although the Taiwanese underwriting industry is highly concentrated, underwriting fees do not cluster at any particular level. We examine the underwriting fee and income structure in Taiwan and find support for an incentive hypothesis. Underwriters have an incentive to charge lower underwriting fees when market demand for IPO shares increases and capital gains account for a larger portion of their total income. [source] Tax Clientele Effects in the Term Structure of UK Interest RatesJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2001Eric J. Levin This paper tests for tax clientele effects in the term structure of UK interest rates. Five empirical models of the term structure of interest rates, incorporating tax effects, are estimated with daily data covering the period 31 March, 1995 to 3 August, 1995. In May 1995, the British government announced its intention to eliminate the tax exemption on capital gains from government bonds, but subsequently in July 1995 backtracked on some of its initial proposals. This period therefore forms the basis of a crude natural experiment in the sense that it provides an opportunity to examine tax clientele effects ,before' and ,after' an event which should have levelled greatly the taxing of government bonds. The empirical analysis suggests large tax clientele effects. However, there is little evidence of tax-specific term structures of interest rates. [source] The Henry George Theorem and the Entrepreneurial Process: Turning Henry George on his HeadAMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 1 2010Laurence S. Moss This chapter offers an interpretation of the Henry George Theorem (HGT) that brings it squarely into the study and analysis of entrepreneurship somewhat loosening its ties to the subfield of urban economics. I draw on the pioneering work of Spencer Heath whose insights about the viability of proprietary communities were developed further by his grandson, Spencer Heath MacCallum who, in 1970, recognized that private real estate developers sometimes make their capital gains (mostly) by creating useful public spaces that others enjoy. I also draw inspiration from Fred Foldvary's effort in 1994 to synthesize the pubic goods problem in economics with the Henry George Theorem in urban economics. While the real estate owner,developer does emerge on my pages in a somewhat more favourable light than as originally portrayed by Henry George in his Progress and Poverty in 1879, I offer a realistic appraisal of the duplicitous behaviours required of such entrepreneurs. in the context of the modern regulatory state. Real estate development remains a ,hot button' item in local politics, and real estate developers must become genuine ,political entrepreneurs' if they are to complete their projects in a timely way and capture business profits. It is a complicated story that the HGT helps make intelligible in terms of human action. [source] Die Unternehmensteuerreform 2008: Eine Reformalternative für Deutschland?PERSPEKTIVEN DER WIRTSCHAFTSPOLITIK, Issue 1 2008Doina Maria R, dulescu With the aid of ifoMOD, a dynamic computable general equilibrium model, we quantify the outcome of this reform. Our results show that the reform induces a significant decline in corporate sector investments since those firms suffer a cumulative double taxation. As a consequence, GDP decreases by 0.6% in the long-run and overall welfare declines by 0.7% in terms of GDP. The economic activity could, however, be enhanced, if one would abstract from taxing capital gains. [source] Capital Gains Tax Overhang and Price PressureTHE JOURNAL OF FINANCE, Issue 3 2006LI JIN ABSTRACT I study whether the capital gains tax is an impediment to selling by some investors and if so, to what degree associated delayed selling affects stock prices. I find that selling decisions by institutions serving tax-sensitive clients are sensitive to cumulative capital gains, a pattern not observed for institutions with predominantly tax-exempt clients. Moreover, tax-related underselling impacts stock prices during large earnings surprises for stocks held primarily by tax-sensitive investors. The corresponding price reactions are less negative (more positive) with higher cumulative capital gains. This price pressure pattern is more severe when arbitrage is more costly. [source] CORPORATE CONSUMPTION: A POSTSCRIPT,THE MANCHESTER SCHOOL, Issue 2 2008Article first published online: 5 FEB 200, MICHAEL SUMNER Corporate retentions have a well-determined effect on consumers' expenditure, which cannot be explained by an impact of retentions on capital gains and thence on household wealth; on the contrary, increases in retentions are associated with subsequent capital losses. The timing of the relationship between retained profits and expenditure is consistent with direct corporate purchases of on-the-job consumption. [source] | |||||||||||||||||||||||||