How will a New Corporate Tax Policy Affect Stock Markets in Bangladesh?
10 Pages Posted: 5 Jul 2015 Last revised: 14 Jul 2015
Date Written: Sepember 30, 2014
Bangladesh stock markets experienced an unsustainable bubble and burst in December 2010. Since then the markets observed a falling turnover and a depressed phase of pricing. Millions of small savers lost their savings and the issue became a public policy debacle for the then government. A reduction in corporate tax rates could mean a major stimulus to corporate investments and future profitability. Its effect on stock market performance will be unambiguous and positive.
Keywords: Corporate tax policy, free cash flows, stock market and stock prices.
JEL Classification: H25, G01, G32, G35
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