The impact of financial transaction taxes on stock markets short-run effects, long-run effects, and reallocation of trading activity Sebastian Eichfelder, Mona Noack, and Felix Noth
By: Eichfelder, Sebastian
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Contributor(s): Noack, Mona | Noth, Félix.
Material type: 
ArticleSubject(s): IMPUESTOS | TRANSACCIÓN TRIBUTARIA | OPERACIONES FINANCIERAS | INCIDENCIA Y TRASLACION
In:
National Tax Journal v. 75, n. 3, september 2022, pp. 539-569Summary: We investigate the French 2012 financial transaction tax (FTT) and find robust evidence for anticipation effects before the implementation date. Controlling for short-run effects, we only find weak evidence for a long-run reduction in trading activity. Thus, the main impact of the French FTT on trading activity is short-run. In line with liquidity clientele effects, we find a more potent effect for low-liquidity stocks and a reallocation of trading to high-liquidity stocks from the Supplemental Liquidity Provider (SLP) program. Finally, we find weak evidence for a persistent volatility reduction but no indication of a significant FTT impact on price efficiency.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP. 233/2022/3-3 (Browse shelf) | Available | OP. 233/2022/3-3 |
Resumen
Bibliografía
We investigate the French 2012 financial transaction tax (FTT) and find robust evidence for anticipation effects before the implementation date. Controlling for short-run effects, we only find weak evidence for a long-run reduction in trading activity. Thus, the main impact of the French FTT on trading activity is short-run. In line with liquidity clientele effects, we find a more potent effect for low-liquidity stocks and a reallocation of trading to high-liquidity stocks from the Supplemental Liquidity Provider (SLP) program. Finally, we find weak evidence for a persistent volatility reduction but no indication of a significant FTT impact on price efficiency.
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