Does differential taxation of short-term relative to long-term capital gains affect long-term investment?

He, Eric; Jacob, Martin; Vashishtha, Rahul; Venkatachalam, Mohan

doi:10.1016/j.jacceco.2022.101479

Cited by 11 publications

(7 citation statements)

References 108 publications

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“…Generality measures the extent to which future tech advances (forward cites) spread across different industries (Henderson et al, 1998). Exploitative patent ratio (Exploitative) is de(20fined as the total number of a firm's patents granted in a year that are classed as 'exploitative' divided by the total number of patents granted to the firm in the year (He et al, 2020)…”

Section: Institutional Investors' Distraction (D)mentioning

confidence: 99%

Institutional investor distraction and innovation

Tsai

Via

2022

Euro Fin Management

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Prior studies suggest high institutional ownership provides stable funding for firm managers supporting long-term innovation. However, we hypothesize that the level of holdings can also proxy for institutional attention. We address this question and find that institutional distraction negatively impacts board monitoring and advisory support for management, reducing R&D, patent filings, citations and creativity.Distraction is concentrated in (1) firms owned by institutions providing low attention before the shock and (2) industries facing low substitute monitoring through competition. Distraction also affects information flow in firms facing high labour mobility and high peer firm innovation (technology spillovers).

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Section: Institutional Investors' Distraction (D)mentioning

confidence: 99%

Institutional investor distraction and innovation

Tsai

Via

2022

Euro Fin Management

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“…We use two main measures of innovation: (1) number of PATENTS, which measures the quantity of innovative output, and (2) patent CITATIONS, which measures the quality of innovative output. We further classify patents as EXPLORATIVE or EXPLOITATIVE following Fitzgerald et al (2021) and He et al (in press), respectively. EXPLORATIVE patents represent new areas of innovation with greater potential and are considered more creative, whereas EXPLOITATIVE patents continue to develop current areas of innovation and are considered less creative.…”

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

Dual‐class share structure and innovation

Baran

Forst

Via

2022

J of Financial Research

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Using a sample of dual‐class firms matched with single‐class firms possessing similar antitakeover protection, we find a positive association between disproportionate insider control and patent output, quality, creativity, research and development efficiency, and chief executive officer innovative risk taking. We also find, however, that the positive effects of disproportionate control on innovation are concentrated in financially constrained firms and firms in highly competitive industries, and that the positive effects dissipate within 10 years after the initial public offering. Most important, the positive effect of dual‐class structures for innovation is conditional on the presence of innovative insiders in the firm. These findings imply that entrenchment through concentrated control in the hands of uniquely innovative corporate insiders provides a positive environment for innovativeness beyond the entrenchment effects of alternative antitakeover measures.

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“…Investment growth for the next 1 year is better than investment growth for 2 years and 3 years. According to [3] Long-term investments will be more profitable because of lower tax rates and generate opportunities for capital gains. According to [4] Forfolio in providing the benefits of risk diversification, the Fama Model provides better information for investors than the CAPM model, this is related to performance in providing returns and efficient portfolio management.…”

Section: Introductionmentioning

confidence: 99%

Navigating Uncertainty: Using CAPM to Invest in LQ45 Index Stocks During the Pandemic

Wuryani¹

2023

Advances in Social Science, Education and Humanities Research

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The Capital Asset Pricing Model (CAPM) is often used by investors in making investment decisions. This study aims to determine the Capital Asset Pricing Model for determining investment in LQ45 Index stocks before the pandemic and during the pandemic. The method used in this study is descriptive comparative with a quantitative approach. The data used is data in the form of annual financial reports (annual report) for the LQ45 Index before the pandemic (2018-2019) and during the pandemic (2020-2021). The Capital Asset Pricing Model can be used to determine investment in LQ45 Index Shares.

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Does differential taxation of short-term relative to long-term capital gains affect long-term investment?

Cited by 11 publications

References 108 publications

Institutional investor distraction and innovation

Institutional investor distraction and innovation

Dual‐class share structure and innovation

Navigating Uncertainty: Using CAPM to Invest in LQ45 Index Stocks During the Pandemic

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