El Seminario de Finanzas de la Escuela de Negocios de la UAI invita a la exposición del profesor Javier Mella, quien se referirá a su paper “”Corporate Taxes, Partisan Politics and Stock Returns.” A partir de las 13: 00 hrs.
“I investigate the effect of different measures of corporate taxes on stock returns. The results support the partisan politics cycle effect on equity returns. A high minus low (Hi-Lo) portfolio sorted by (Total Corporate Taxes/Total Assets) has an annual return of +3.8% during Republican presidential terms and -6.3% for Democratic terms. Similarly, a high minus low portfolio sorted by (Marginal Tax Rate) has an annual return of +12.7% during Republican presidential terms and -6.4% for Democratic terms. Investors partially anticipate these results during the election period, i.e., increases in the probability of the Democratic candidate being elected are associated with negative returns for the (Hi-Lo) portfolio, which are significant for the 2016 election. The evidence is consistent with a cash-flow based explanation, in contrast with a risk-based explanation.”