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Introduction of the single-tier corporate tax system: its effect on share price

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dc.contributor.authorAslam Selamat
dc.contributor.authorMohamed
dc.contributor.authorShamsher Mohamad Ramadili Mohd
dc.date.accessioned2016-06-06
dc.date.accessioned2016-07-25T20:05:46Z
dc.date.available2016-06-06
dc.date.available2016-07-25T20:05:46Z
dc.date.disclosure2016-06-10
dc.date.issued2013
dc.description.abstractMalaysia and Singapore are the first countries to end their 45-year old imputation tax systems by replacing it with the simpler single-tier corporate tax system. Corporations have ceased to keep records of divident tax credits required under the imputation laws with the implementation of thee single-tier tax systems. We find evidence rom Malaysian and Singapore on how the share prices responded to the announcements in 2007 and 2002 respectively. The Singapore market reacted positively to the announcement; the Malaysan results were influenced by th global credit crunch. Also, we measured the ex-dividend days moved according to theory. In both countries, the average price drop ratio moved closer to 1.00 as predicted by theory. This is due to the absence of capital gains and zero personal tax under the single tax system. Given the world-wide interest in the single-tier tax regime for future corporate tax reforms, our finding is a first to identify a theory-consistent result on this new topic
dc.identifier.citationSelamat, A., Abdul Kareem, M. A., & Ramadili Mohd, S. M. (2013). Introduction of the single-tier corporate tax system: its effect on share price. Capital Markets Review, 21, pp. 39-66.
dc.identifier.issn1823-4445
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/1411
dc.languageEnglish
dc.language.isoeng
dc.publisherBursa Malaysia & Malaysian Finance Association
dc.rights2013. Bursa Malaysia & Malaysian Finance Association
dc.sourceCRP
dc.subjectEvent study
dc.subjectEx-dividend day share price
dc.subjectImputation tax
dc.subjectSingle-tier tax
dc.titleIntroduction of the single-tier corporate tax system: its effect on share price
dc.typeJournal Article
dlc.maintopicConventional finance
dlc.subtopicCapital markets
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional finance
ikr.topic.subtopicConventional finance
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relation.isAuthorOfPublication.latestForDiscovery33b91dde-0170-454c-8f2b-ec4b208837b9
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