search query: @author Stevens, J. L. / total: 5
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| Author: | McCue, M. J. Stevens, J. L. |
| Title: | Market segmentation and the residual demand for tax- exempt bonds: empirical evidence from the elimination of interest deductions. |
| Journal: | Journal of Business Finance and Accounting
1992 : SEP, VOL. 19:5, p. 777-788 |
| Index terms: | MARKET SEGMENTATION RESIDUAL INCOME BONDS SECURITIES TAX EXEMPTION |
| Language: | eng |
| Abstract: | In this paper, event methods are used to test the sensitivity of tax-exempt bond pricing relative to overall bond market pricing before and after a tax law change that affected only financial institutions. Results from the study indicate that significant abnormal returns on tax- exempt bonds correspond to the effective date of the tax law change and that financial institutions were a significant marginal investing segment of the tax-exempt market. The findings cast doubt on traditional excess fund explanations of financial institution demand for tax-exempt securities and support the segmentation hypothesis. |
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