Abstract
The Law no. 13.043/2014 made impossible the “barriga de aluguel”strategy on the stock Market. The hypothesis is that the funds’s tax arbitrage strategy due the condition relief’s tax was a short selling’s restriction. We used the market data from the companies listed in B3 of 2014 and 2015 to estimate the law’s mean-effect by Differences in Differences with robust least squares regression. The regressions’s results suggest that the average law-effects were significant and consistent with the theory due the reduction in lendingrates reflected in the increase in trading volumes on the stock lending market.