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

Abstract

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

Suggested Citation

Rahman, Mizanur, How will a New Corporate Tax Policy Affect Stock Markets in Bangladesh? (Sepember 30, 2014). Available at SSRN: https://ssrn.com/abstract=2626783 or http://dx.doi.org/10.2139/ssrn.2626783

Mizanur Rahman (Contact Author)

University of Dhaka ( email )

Department of Accounting & Information Systems
University of Dhaka
Dhaka, 1000
Bangladesh
+88 01817684202 (Phone)
+88 2 8615583 (Fax)

HOME PAGE: http://www.acmd.com.bd

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