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Euikyu Choi, Wei Du and Caitlin Riley
 
''The impact of Wayfair vs. South Dakota on retailers: an event study''
( 2021, Vol. 41 No.3 )
 
 
We study the impact of the supreme court ruling of Wayfair vs. South Dakota on the retailing industry. We do so by examining financial market reactions to the ruling. Specifically, we find positive abnormal returns for local retailers and insignificant results for online retailers. Our results are consistent with the notion that the supreme court ruling benefited the local retailers due to the removal of the tax loophole that put them at a disadvantage versus online retailers.
 
 
Keywords: sales tax, retailers, competition, stock returns
JEL: G3 - Corporate Finance and Governance: General
L8 - Industry Studies: Services: General
 
Manuscript Received : Nov 14 2020 Manuscript Accepted : Jul 18 2021

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