The London Stock Exchange commissioned Oxera to examine how the abolition of the UK stamp duty on equity transactions would affect the cost of capital and investment levels of UK publicly listed companies. The report drew on a variety of methodologies to estimate the potential impact of changes in the stamp duty regime. In particular, it incorporated: available academic literature on the impact of transaction costs on share prices and the cost of capital, as well as the relationship between the cost of capital and investment; new research conducted by Oxera on the impact of changes in the stamp duty regime; knowledge acquired through interviewing a large number of practitioners.