Mutual Fund Capital Gain Distributions and the Tax Reform Act of 1997

Stephanie Plancich

National Tax Journal, 2003, vol. 56, issue 1, 271-96

Abstract: This paper studies long- and short-term capital gains distributions around the time of the Tax Reform Act of 1997, which lowered the maximum tax rate on long-term gains. Using a panel of mutual fund data, I find that fund managers appear to tilt their distributions towards the long-term after 1997. This behavior is consistent with the hypothesis that managers are tax-sensitive, and the estimates are robust to the inclusion of fund-level fixed effects and other controls. I also examine fund capital gains patterns in a difference-in-differences framework, comparing actively managed to index funds, to find a lower-bound estimate of funds' response.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.17310/ntj.2003.1S.08 (application/pdf)
https://doi.org/10.17310/ntj.2003.1S.08 (text/html)
Access is restricted to subscribers and members of the National Tax Association.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ntj:journl:v:56:y:2003:i:1:p:271-96

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by The University of Chicago Press ().