Taxation and International Capital Asset Pricing Theory

Focusing on the integration of exchange gains taxation, this dissertation advances the theory of pricing international assets by enhancing the Tax - International Capital Asset Pricing Model (IntCAPM). It reveals that incorporating exchange gains tax factors creates a new international pricing relationship that connects excess returns of risky assets with their world risk premium. Additionally, it addresses the non-linear behavior of exchange rates and the influence of monetary policy on inflation, ultimately linking market equilibrium exchange rates and inflation into the Tax - IntCAPM framework.