Corporate taxes, partisan politics, and stock returns

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dc.coverageDOI: 10.1016/j.najef.2024.102119
dc.creatorMella, Javier
dc.date2024
dc.date.accessioned2025-11-18T19:49:46Z
dc.date.available2025-11-18T19:49:46Z
dc.description<p>This paper studies the effect of partisan politics on stock returns in the U.S. by exploring different measures of corporate taxes. The results support the partisan politics cycle effect on equity returns. The cross-sectional analysis shows that the measures of corporate taxes impact stock returns but only when interacting with partisanship. Moreover, the time-series analysis shows that an investment strategy based on these results provides abnormal returns and that investors only partially anticipate them. The findings are consistent with a cash-flow-based explanation, in contrast with a risk-based explanation, and highlight the relevance of the political orientation of the governments in explaining the variation of stock returns.</p>eng
dc.identifierhttps://investigadores.uandes.cl/en/publications/d3fb944b-39fd-4996-8678-ab8184bee904
dc.identifier.urihttps://repositorio.uandes.cl/handle/uandes/56259
dc.languageeng
dc.rightsinfo:eu-repo/semantics/restrictedAccess
dc.sourcevol.72 (2024) p.1-19
dc.subjectAsset pricing
dc.subjectCorporate taxes
dc.subjectPartisan politics
dc.subjectPolitical cycles
dc.subjectStock market
dc.titleCorporate taxes, partisan politics, and stock returnseng
dc.typeArticleeng
dc.typeArtículospa
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