IIMB Management Review

Journal of Indian Institute of Management Bangalore

Tax Motivated Trading Strategies and Stock Performance around the Ex-Bonus day and Ex-Rights Day

Prof. R Srinivasan
2001
Working Paper No
179
Body

Empirical evidence in India highlights extremely large positive abnormal performance on ex-bonus and ex-rights dates for equity. This paper argues that the tax regime can motivate trading strategies following around the ex-dates. The analysis also concludes that the tax regime can lead to significant positive abnormal performance if long-term investors are the equilibrium-price determining investors.

Key words
Stock,Ex-Rights Day
wp.iimb_.179.pdf (832.91 KB)

Tax Motivated Trading Strategies and Stock Performance around the Ex-Bonus day and Ex-Rights Day

Author(s) Name: Prof. R Srinivasan, 2001
Working Paper No : 179
Abstract:

Empirical evidence in India highlights extremely large positive abnormal performance on ex-bonus and ex-rights dates for equity. This paper argues that the tax regime can motivate trading strategies following around the ex-dates. The analysis also concludes that the tax regime can lead to significant positive abnormal performance if long-term investors are the equilibrium-price determining investors.

Keywords: Stock,Ex-Rights Day
wp.iimb_.179.pdf (832.91 KB)