@inbook{cbba80ed3ba34e8185bee19493eed2d7,
title = "INVESTOR REACTION TO THE INTERNATIONAL PROVISIONS OF THE TAX CUTS AND JOBS ACT OF 2017",
abstract = "We examine the stock market reaction to the Tax Cuts and Jobs Act (TCJA) of 2017 during its enactment process, focusing on its international provisions. Consistent with extant evidence, we find lower returns for high-foreign-activity firms, indicating a negative market reaction to the international provisions overall. Considering specific international provisions, we find that the market reaction was more positive (negative) for firms likely most affected by the shift to a quasi-territorial system for taxing foreign earnings (the transition tax on existing unrepatriated earnings, the tax on global intangible low-taxed income, and/or the base erosion and antiabuse tax) than for other firms. Our findings imply that investors are able to disentangle the economic implications of complex and interactive tax law changes.",
keywords = "TCJA, Tax Cut and Jobs Act of 2017, cumulative abnormal returns, foreign earnings, international tax, market reaction, territorial tax system, worldwide tax system",
author = "Lin, {K. C.} and Moore, {Jared A.} and Tree, {David R.}",
note = "Funding Information: We appreciate helpful comments and suggestions from Robert Gary, John Hasseldine (editor), Xiangge Wang, one anonymous reviewer, and participants at the 2022 AAA Southwest Annual Meeting, the 2020 Advances in Accounting Research Conference, the 2019 AAA Annual Meeting, and the 2018 Texas Tech Tax Seminar group. We also thank Brad Mikus for excellent research assistance. Publisher Copyright: {\textcopyright} 2023 by Emerald Publishing Limited.",
year = "2023",
month = jun,
day = "16",
doi = "10.1108/S1058-749720230000030001",
language = "English",
series = "Advances in Taxation",
publisher = "Emerald Publishing",
pages = "1--35",
booktitle = "Advances in Taxation",
}