How Do Dividend Taxes Affect Investor Behavior and Market Volatility in China?

Summary

Accounting and Reporting Tax Personal Financial Planning

This study explores the effect of dividend taxes on investor behavior and market volatility in China following the 2012 Dividend Tax Reform. By analyzing how changes in dividend taxation, tied to the length of shareholding, influence individual investors' decisions, the researchers examine the impact on idiosyncratic volatility and stock price stability.