The impact of taxation policies on financial market efficiency: A mixed-method study using online financial data

This study examines the impact of taxation policies on financial market performance through a mixed-methods analysis of 15 developed and emerging economies from 2010 to 2024. It combines quantitative econometric modeling of key market indicators-such as liquidity ratios, bid-ask spreads, and volatility indices-with qualitative content analysis of policy frameworks and financial discourse. Findings show that capital gains and transaction taxes significantly reduce market efficiency by lowering trading volume and increasing information asymmetry, with emerging markets exhibiting greater sensitivity. Several policy mechanisms, including tax deferral options and progressive rates, can mitigate these negative effects. Additionally, qualitative analysis reveals investor concerns over tax policy unpredictability and its disruptive impact on portfolio allocation. These results contribute to debates on optimal tax policy in increasingly digital and interconnected markets, suggesting that carefully designed tax incentives can balance fiscal goals with market efficiency. The study concludes with policy recommendations tailored to different market development levels.