The Dividend Clientele Hypothesis: Evidence from the 2003 Tax Act
نویسندگان
چکیده
منابع مشابه
The Dividend Clientele Hypothesis : Evidence from the 2003 Tax Act ∗
In this paper, I test the dividend clientele hypothesis (DCH) by examining the impact of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the 2003 tax act) on household portfolio dividend yields. The DCH predicts that the 2003 tax act, which reduced the tax-disadvantage of dividends differentially across the income distribution, would cause high income households to shift their portfo...
متن کاملThe Effects of the 2003 Dividend Tax Cut on Corporate Behavior: Interpreting the Evidence
The 2003 dividend tax reform has generated renewed interest in understanding the economic effects of dividend taxation. The reform introduced favored tax treatment of individual dividend income, whereby dividends are taxed at a rate of 15 percent instead of facing the regular progressive individual income tax schedule with a top rate of 35 percent. Several recent studies have used the 2003 tax ...
متن کاملTax Deductions, Environmental Policy, and the “Double Dividend” Hypothesis
Recent studies find that environmental tax swaps typically exacerbate the costs of the tax system and therefore do not produce a “double dividend”. We extend previous models by incorporating taxfavored consumption goods (e.g. housing, medical care). In this setting, the efficiency gains from recycling environmental tax revenues are larger because pre-existing taxes distort the consumption bundl...
متن کاملCapital Tax Reform and the Real Economy: The Effects of the 2003 Dividend Tax Cut
This paper tests whether the 2003 dividend tax cut—one of the largest reforms ever to a US capital tax rate—stimulated corporate investment and increased labor earnings, using a quasi-experimental design and US corporate tax returns from years 1996–2008. I estimate that the tax cut caused zero change in corporate investment and employee compensation. Economically, the statistical precision chal...
متن کاملEx-Dividend Day Stock Price Behavior: The Case of the 1986 Tax Reform Act*
This paper analyzes the behavior of stock prices around ex-dividend days after the implementation of the 1986 Tax Reform Act that dramatically reduced the difference between the tax treatment of realized long-term capital gains and dividend income in 1987 and completely eliminated the differential in 1988. We show that this tax change had no effect on the ex-dividend stock price behavior, which...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.1668158