The effects of quintuple taxes on market capitalization

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories



Ramon V. Del Rosario College of Business



Thesis Adviser

Florenz C. Tugas

Defense Panel Member

Alger C. Tang
Alloysius Joshua Paril


One way to knowledgeably transact in the stock market is to know the total value of the firm as seen in its market capitalization, as well as the essential factors affecting it. The research is limited to companies publicly-listed in the Philippine Stock Exchange (PSE) and is focused on the taxes involved directly, taxes incurred through the transactions made, and eventually firm valuation. Furthermore, there is a lack of research regarding other shareholder-level tax, especially those which specifically use Philippine tax laws and the PSE rules and regulations such as different transaction taxes incurred by shareholders and were used in the study, as required by the PSE. As such, this study provides preliminary data regarding the significance of quintuple taxes, specifically corporate income tax, dividend tax, stock transaction tax, and value added taxes on buying and selling, on firm value through market capitalization, under the Philippine setting.

Results show that only dividend tax significantly affects market capitalization. These findings support the arguments for dividend tax capitalization as provided by Harris and Kemsley (1999), and the insignificant effect of transaction taxes which may be due to the low trading volatility in the PSE. Value added taxes on buying and selling are shown to be perfectly collinear with stock transaction tax, and were omitted as variables. The researchers recommend further studies on these taxes to obtain a wider scope due to the exploratory nature of the study regarding value Added taxes on buying and selling."

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

120 leaves, illustrations, 28 cm. + 1 computer disc (4 3/4 in.)


Capital levy--Philippines; Taxation--Philippines

Embargo Period


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