Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy
This paper aims to highlight the correlation between Ghana’s Electronic Transfer Levy (E-levy) and the stock market performance of the target firms. Initially, the E-levy aimed to raise GH₵7 billion by taxing electronic transfers exceeding GH₵100 daily at a rate of 1.75%. Following a rate reduction...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2025.2476095 |
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| author | John Boamah Ernestina Ohenewaah Denchie Aurelia Naa Ayikaikor Ayi-Bonte |
| author_facet | John Boamah Ernestina Ohenewaah Denchie Aurelia Naa Ayikaikor Ayi-Bonte |
| author_sort | John Boamah |
| collection | DOAJ |
| description | This paper aims to highlight the correlation between Ghana’s Electronic Transfer Levy (E-levy) and the stock market performance of the target firms. Initially, the E-levy aimed to raise GH₵7 billion by taxing electronic transfers exceeding GH₵100 daily at a rate of 1.75%. Following a rate reduction to 1.5%, the revenue target was revised to GH₵4.5 billion. Using a difference-in-differences approach, we find a negative effect on target firm stock prices, persisting around the implementation period. We also find that reducing the levy influences stock prices positively. Our channel test reveals that the levy affects the stock market through transaction volume, with a stronger result for firms with below-average trading volumes. The policy recommendation is to reduce the rate below 0.5%. |
| format | Article |
| id | doaj-art-debe4df2ca41446390962bcbf703801f |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-debe4df2ca41446390962bcbf703801f2025-08-20T02:38:10ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2476095Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levyJohn Boamah0Ernestina Ohenewaah Denchie1Aurelia Naa Ayikaikor Ayi-Bonte2Department of Accountancy, Hong Kong Baptist University, Kowloon Tong, Kowloon, Hong KongDepartment of Geography, Hong Kong Baptist University, Kowloon Tong, Kowloon, Hong KongDepartment of Communication Studies, Hong Kong Baptist University, Kowloon Tong, Kowloon, Hong KongThis paper aims to highlight the correlation between Ghana’s Electronic Transfer Levy (E-levy) and the stock market performance of the target firms. Initially, the E-levy aimed to raise GH₵7 billion by taxing electronic transfers exceeding GH₵100 daily at a rate of 1.75%. Following a rate reduction to 1.5%, the revenue target was revised to GH₵4.5 billion. Using a difference-in-differences approach, we find a negative effect on target firm stock prices, persisting around the implementation period. We also find that reducing the levy influences stock prices positively. Our channel test reveals that the levy affects the stock market through transaction volume, with a stronger result for firms with below-average trading volumes. The policy recommendation is to reduce the rate below 0.5%.https://www.tandfonline.com/doi/10.1080/23322039.2025.2476095E-levymobile bankingmobile moneydifference-in-differencesGhanaBanking |
| spellingShingle | John Boamah Ernestina Ohenewaah Denchie Aurelia Naa Ayikaikor Ayi-Bonte Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy Cogent Economics & Finance E-levy mobile banking mobile money difference-in-differences Ghana Banking |
| title | Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy |
| title_full | Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy |
| title_fullStr | Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy |
| title_full_unstemmed | Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy |
| title_short | Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy |
| title_sort | electronic transfer taxes and the stock market empirical evidence from ghana s e levy |
| topic | E-levy mobile banking mobile money difference-in-differences Ghana Banking |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2025.2476095 |
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