earticle

영어

This paper analyzes the transaction patterns investors use to avoid capital gains by studying data which reflects the patterns over-the-counter juridical persons use on days of public notification. It also provides a practical application of its findings. Theoretical studies are reviewed by investigating the existing studies and the practical application of their theories, and after taking the peculiarities of Korea`s existing systems into account, the study`s assumptions are set up. The study conclusively finds that the public notification and practical application of taxation for capital gains of unlisted stocks has a negative influence on the turnover of stocks. The turnover of stocks with a(+)earning rate increases more than those with a(-)earning rate because investors want to reduce the burden of taxation in December. The study finds that listed companies are also affected: When the practical application of the taxation for capital gains is adapted, there may not only be a locked-in effect of turnover in the beginning of the taxation year but also a severe locked-in effect throughout the entire taxation year. In the event that taxation is widely adapted for listed stocks in the future, the results of this study can be used to minimize taxation shock.