Research Seminar The effect of capital gains tax policy changes on long-term investments

2019-08-05 12:22:57

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Nazarbayev University Graduate School of Business invites you to Research Seminar by Mohan Venkatachalam, Senior Associate Dean, Executive Programs and R.J. Reynolds Professor at Duke’s Fuqua School of Business. 

The title of the paper that will be presented is:

“THE EFFECT OF CAPITAL GAINS TAX POLICY CHANGES ON LONG-TERM INVESTMENTS”.

You can find the paper here.

The enclosed blog contains a short version of the paper: http://clsbluesky.law.columbia.edu/2019/06/19/how-taxing-short-term-share-profits-can-foster-innovation/

WHEN: Monday, August 5, 12:00 – 13:30 pm 

WHERE: Block C3 (GSB/GSPP Building), 3rd floor, Room 3038 

ABSTRACT: Pressure from short-horizon investors can hurt investments in innovative, long-run value increasing projects. We explore the efficacy of a commonly proposed tax-based policy tool to mitigate this problem: imposition of greater taxes on short-term capital gains relative to long-term capital gains. Using a panel of 30 OECD countries and 21 capital gains tax shocks over 1991-2006, we find that rewarding longer-term ownership through lower capital gains taxes results in an increase in corporate innovation. The evidence should be of interest to lawmakers and regulators and also adds to our understanding of the real effects of taxation of investor trading activity.

SPEAKER: Mohan Venkatachalam is the Senior Associate Dean for Executive Programs and R.J. Reynolds Professor of Business Administration at Duke University’s Fuqua School of Business. Professor Venkatachalam received his Ph.D. from the University of Iowa in 1996 and is a Chartered Accountant from India. He has worked as an Accountant and Internal Auditor in India and the Middle East.

Prior to joining Duke, Professor Venkatachalam was a faculty member at Stanford University, and has taught several courses including Financial Accounting, Financial Analysis and Executive Compensation. He has published research papers on a wide range of topics in valuation, nonfinancial performance measures, accounting disclosures, derivatives and corporate governance. His most recent work involves the role of verbal and nonverbal managerial communication in financial markets. He was an Editor of the Accounting Review and serves on the Editorial Boards of The Accounting Review, Review of Accounting Studies and Contemporary Accounting Research.

HJVV May 6 2019