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dc.contributor.authorParwada, J.
dc.contributor.authorRui, Yixuan
dc.contributor.authorShen, J.
dc.date.accessioned2022-05-27T10:02:58Z
dc.date.available2022-05-27T10:02:58Z
dc.date.issued2022
dc.identifier.citationParwada, J. and Rui, Y. and Shen, J. 2022. Financial transaction tax and market quality: Evidence from France†. International Review of Finance. 22 (1): pp. 90-113.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/88626
dc.identifier.doi10.1111/irfi.12342
dc.description.abstract

The effectiveness of Financial Transaction Taxes (FTTs) for deterring speculative trading and improving market quality remains controversial. Studying the FTT imposed in 2012 on large-cap stocks traded on the Euronext Paris, we find that stocks subject to the FTT subsequently experience significantly decreased turnover and increased spreads relative to the untaxed peers. Further tests suggest that the FTT imposition induces investors to migrate their trades and results in less informativeness in the taxed stocks. Collectively our findings support the view that FTTs deter informed trades and reduce market quality.

dc.languageEnglish
dc.publisherWILEY
dc.subjectSocial Sciences
dc.subjectBusiness, Finance
dc.subjectBusiness & Economics
dc.subjectfinancial transaction tax
dc.subjectinformation content of trades
dc.subjectliquidity
dc.subjecttrade migration
dc.titleFinancial transaction tax and market quality: Evidence from France†
dc.typeJournal Article
dcterms.source.volume22
dcterms.source.number1
dcterms.source.startPage90
dcterms.source.endPage113
dcterms.source.issn1369-412X
dcterms.source.titleInternational Review of Finance
dc.date.updated2022-05-27T10:02:54Z
curtin.departmentSchool of Accounting, Economics and Finance
curtin.accessStatusOpen access
curtin.facultyFaculty of Business and Law
curtin.contributor.orcidRui, Yixuan [0000-0002-1299-2970]
dcterms.source.eissn1468-2443


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