Is a dividend tax penalty incorporated into the return on a firm's common stock?

• 成果类型: Article
• 署名作者: Dhaliwal, D; Li, OZ; Trezevant, R
• 署名单位: University of Southern California; University of Southern California; University of Arizona
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(03)00017-X
• 发表日期: 2003
• 关键词: price reactions; Capital gains; valuation; determinants; INFORMATION; CLIENTELES; earnings; rates; RISK

摘要

We find that a firm's dividend yield has a positive impact on its common stock return that is decreasing in the level of institutional and corporate ownership, our indicator of whether the marginal investor in a firm's common stock is more likely to be a low-tax or a high-tax investor. These results suggest that (1) a dividend tax penalty is incorporated into the return on a firm's common stock and (2) both a firm's dividend policy and its ownership structure impact the size of the dividend tax penalty. (C) 2003 Elsevier Science B.V. All rights reserved.