Shareholder Wealth Effects of Border Adjustment Taxation

Fabio B. Gaertner, Jeffrey Hoopes and Edward L. Maydew

Journal of Law and Economics, 2019, vol. 62, issue 2, 215 - 249

Abstract: Following 2 decades of discussion, the border adjustment tax (BAT) briefly emerged as part of proposed US corporate tax reform in early 2017. While heavily debated, little empirical evidence exists regarding the BAT. We take advantage of the period during which the BAT was under strong consideration to examine its effects on shareholder value. We find that high-importing firms (measured using industry, aggregate government industry data, and firm-level shipping-container data) suffer negative returns on days the tax had a greater likelihood of adoption. We also find that firms lobbying for the BAT experience positive returns over that same time period.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.1086/704634 (application/pdf)
http://dx.doi.org/10.1086/704634 (text/html)
Access to the online full text or PDF requires a subscription.

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:ucp:jlawec:doi:10.1086/704634

Access Statistics for this article

More articles in Journal of Law and Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().