Taxation of Wealthy Individuals, Inequality Governance and Corporate Social Responsibility
Kuo-Shing Chen (),
Chien-Chiang Lee () and
Huolien Tsai ()
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Kuo-Shing Chen: Department of Accounting and Taxation, Shih Chien University, Kaohsiung 845, Taiwan
Huolien Tsai: Department of Finance, National Sun Yat-sen University, Kaohsiung 804, Taiwan
Sustainability, 2019, vol. 11, issue 7, 1-23
This paper provides new evidence on reducing income (or wealth) disparity. Accurate inequality measures are important to policymakers with a concern for inequality governance and the calibration of tax policy. Our empirical findings show that block trading of securities has no significant impact on volume or amount before and after the 2015 abolition of capital gains taxation in Taiwan. Crucially, the results ultimately demonstrate complete capital gains tax redistribution failure, due to capital flight into overseas investments. Thus, tax policy cannot be the only channel to reduce these inequalities. At the national level, policymakers could build on the conclusions drawn in this paper by developing corporate social responsibility (CSR) strategies and adjusting the tax systems for wealthy people so as to achieve policy goals. Our study aims to provide the first quantitative empirical evidence recognizing significant factors among the CSR strategies pursued to strengthen the rules of inequality governance. More precisely, we have also applied both fully modified and dynamic ordinary least squares cointegration tests, as well as conical cointegration regression, to check the robustness of our estimation results.
Keywords: block trade securities; corporate social responsibility; high compensation index; inequality governance (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:7:p:1851-:d:217745
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