International Journal of Business Policy and Strategy Management
| Volume 4, No. 1, 2017, pp 51-56 | ||
| Abstract |
A Study on the Reaction of Real Estate Market by the Change of the Acquisition Tax Rate in South Korea
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Abstract
The purpose of this study is to analyze the effects of changing of acquisition tax on investment intentions of investors, how they react to policy of acquisition tax in a real estate market in South Korea through a Cumulated Abnormal Return(CAR) method and BHARst (Buy-Hold Abnormal Returns at Sales Time) method. In this study, we measured the results along the reference of each analysis due to the reduction and impression of the acquisition tax rate that occurred during the period up to August 31, 2014 from January 3, 2005. The conclusion is that according to the CAR model, Hypothesis 2 and Hypothesis 1 are partially accepted. And Hypothesis 2 was adopted in the BHARst model. These findings suggest that the real estate market investors have a Certainty Effect.