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:: year 13, Issue 52 (2021) ::
fa 2021, 13(52): 134-161 Back to browse issues page
Financial Transaction Tax in Tehran Stock Exchange and Size Dependent Effects on Measure of Market Quality
Parvaneh Motie1 , Ali Mazyaki2 , Hossein Panahian * 1, Hasan Ghodrati1
1- Department of Accounting, Kashan Branch, Islamic Azad University, Kashan, Iran
2- Economics Department, Allameh Tabataba'i University (ATU)
Abstract:   (2486 Views)
In this study, we investigate the differentiated effect of changing Financial transaction tax on liquidity and volatility among small, medium and large companies. For this purpose, the companies admitted to the Tehran Stock Exchange are divided into three sectors based on market value, and by using the reduction in the share transfer tax rate in September 2018, the changes in trading volume, liquidity, volatility and price efficiency are evaluated and compared for three portfolios, small, medium and large using high frequency data in the period from July to November 2018.
The findings show that effects of reducing stock exchange tax on market quality measures are inversely related to the size of companies. In other words, relative to large companies, the tax reduction would further reduce the volatility of small companies and would increase the volume of transactions, liquidity and price efficiency of small companies. Therefore, it can be said that overall, the desirability of tax reduction has appeared more on small and medium-sized companies, and it seems plausible to reduce or exempt smaller companies in stock market from the financial transaction tax. This result could be very enlightening for the design of policies related to small and medium enterprises.
Article number: 6
Keywords: Financial Transaction Tax, Firm Size, Volatility, Liquidity
Full-Text [PDF 548 kb]   (88 Downloads)    
Type of Study: Research | Subject: Special
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Motie P, Mazyaki A, Panahian H, Ghodrati H. Financial Transaction Tax in Tehran Stock Exchange and Size Dependent Effects on Measure of Market Quality. fa 2021; 13 (52) : 6
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year 13, Issue 52 (2021) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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