The Dividend Clientele Hypothesis: Evidence from the 2003 Tax Act

• 成果类型: Article
• 署名作者: Kawano, Laura
• 署名单位: United States Department of the Treasury
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.6.1.114
• 发表日期: 2014
• 页码: 114-136
• 关键词: portfolio composition; taxation; POLICY; COSTS; BEHAVIOR; firm

摘要

This paper provides evidence that dividend and capital gains tax rates importantly influence household portfolio choices. Using data from the Surveys of Consumer Finances around the 2003 dividend tax reductions, I estimate the relationship between taxes and household portfolio dividend yields. I find that a one percentage point decrease in the dividend tax rate relative to the long-term capital gains tax rate causes household portfolio dividend yields to increase by 0.04 percentage points. The results suggest that high income households significantly increased their portfolio dividend yields in response to the 2003 dividend tax rate reductions.