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The Lock-in Effect of Capital Gains Taxes: Evidence From the RJR Nabisco Leveraged Buyout

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  • Landsman, Wayne R.
  • Shackelford, Douglas A.

Abstract

Studies overcomes data limitations and analyses capital gains taxes using the 1989 RJR Nabisco leverage buyout as an example. Finds negative correlation between price and tax basis for the shares sold.

Suggested Citation

  • Landsman, Wayne R. & Shackelford, Douglas A., 1995. "The Lock-in Effect of Capital Gains Taxes: Evidence From the RJR Nabisco Leveraged Buyout," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(2), pages 245-259, June.
    • Handle: RePEc:ntj:journl:v:48:y:1995:i:2:p:245-259
    DOI: 10.1086/NTJ41789140
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    References listed on IDEAS

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    1. Kiefer, Donald W., 1990. "Lock-In Effect Within a Simple Model of Corporate Stock Trading," National Tax Journal, National Tax Association, vol. 43(1), pages 75-94, March.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Constantinides, George M, 1983. "Capital Market Equilibrium with Personal Tax," Econometrica, Econometric Society, vol. 51(3), pages 611-636, May.
    4. Martin Feldstein & Joel Slemrod & Shlomo Yitzhaki, 1980. "The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 777-791.
    5. Stulz, ReneM., 1988. "Managerial control of voting rights : Financing policies and the market for corporate control," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 25-54, January.
    6. Stiglitz, Joseph E., 1983. "Some aspects of the taxation of capital gains," Journal of Public Economics, Elsevier, vol. 21(2), pages 257-294, July.
    7. Gerald E. Auten & Charles T. Clotfelter, 1982. "Permanent versus Transitory Tax Effects and the Realization of Capital Gains," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 613-632.
    8. Yitzhaki, Shlomo, 1979. "An Empirical Test of the Lock-in Effect of the Capital Gains Tax," The Review of Economics and Statistics, MIT Press, vol. 61(4), pages 626-629, November.
    9. Cook, Eric W. & O'Hare, John F., 1992. "Capital Gains Redux: Why Holding Periods Matter," National Tax Journal, National Tax Association, vol. 45(1), pages 53-76, March.
    10. Laurie Simon Bagwell, 1991. "Share Repurchase and Takeover Deterrence," RAND Journal of Economics, The RAND Corporation, vol. 22(1), pages 72-88, Spring.
    11. Henderson, Yolanda K., 1990. "Capital Gains Tax Rates and Stock Market Volume," National Tax Journal, National Tax Association;National Tax Journal, vol. 43(4), pages 411-425, December.
    12. Kiefer, Donald W., 1990. "Lock-in Effect Within a Simple Model of Corporate Stock Trading," National Tax Journal, National Tax Association;National Tax Journal, vol. 43(1), pages 75-94, March.
    13. Cook, Eric W. & O'Hare, John F., 1992. "Capital Gains Redux: Why Holding Periods Matter," National Tax Journal, National Tax Association;National Tax Journal, vol. 45(1), pages 53-76, March.
    14. Henderson, Yolanda K., 1990. "Capital Gains Tax Rates and Stock Market Volume," National Tax Journal, National Tax Association, vol. 43(4), pages 411-25, December.
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