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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Unequal Rewards to Firms: Stock Market Responses to the Trump Election and the 2017 Corporate Tax Reform |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | American Economic Association. Papers and Proceedings |
| Publisher | American Economic Association |
| Geographical Reach | international |
| ISSN | 2574-0768 |
| Volume | 108 |
| Number | May |
| Page Range | 590 - 596 |
| Date | 2018 |
| Abstract Text | Massive dollars shuttled back and forth among firms on the twisted path to and passage of the 2017 tax reform. Prices of individual stocks responded to the difference between initial and revised expectations. From the bill’s initiation in the House to final passage, high-tax firms gained significantly, given the dramatic cut from 35% to 21% in the corporate tax rate. Internationally-oriented firms suffered notably, since investors assessed that the surprisingly high repatriation tax outweighed the benefits from territorial taxation. Daily price movements show that the aggregate market responded positively to lower expected taxes. |
| Free access at | DOI |
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| Digital Object Identifier | 10.1257/pandp.20181091 |
| Other Identification Number | merlin-id:17681 |
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