Taxes and the Marginal Investor
نویسندگان
چکیده
منابع مشابه
Portfolio Selection with Multiple Risky Assets and Capital Gains Taxes
We analyze the portfolio choice of an investor who can invest in two risky assets (in addition to a riskless asset) and who is subject to taxes on realized capital gains. These taxes appear in the portfolio choice problem as a form of time-dependent, endogenous transaction costs. Similar to the case of portfolio choice with transaction costs, the optimal strategy of the taxable investor contain...
متن کاملDividend Tax Capitalization and Liquidity
We provide a new explanation for cross-sectional variation in dividend tax capitalization. Our analysis is twofold. First, we conduct a theoretical analysis that shows that liquidity (illiquidity) mitigates (magnifies) the positive effect of dividend taxes on expected rates of return documented in prior literature. Second, we conduct an empirical analysis centered around the Jobs and Growth Tax...
متن کاملResistance to Outside Investment: A Rational Model of Surplus Destruction
If the government has the ability and willingness to redistribute the surplus created by an external investor, why do we still observe resistance to such investment, sometimes in the form of destruction of productive assets? And how does such destructive action a¤ect a governments investor-friendliness? In a simple model where di¤erent social groups have di¤erent and uncertain valuation of p...
متن کاملThe Value of Australian Dividends Implied by Exchange Traded Options
The valuation of dividend imputation credits is a currently unresolved issue facing managers, investors and regulators in the Australian market. This thesis builds upon Officer’s (1994) cost of capital, under imputation, framework by seeking to identify the value of imputation credits implied by option prices. It extends the existing imputation literature by using widely traded common stock opt...
متن کاملThe impact of financing schemes and income taxes on electricity generation costs
17 T he NEA carries out economic studies on a regular basis to assist member countries in their own assessments in support of decision making for the power sector. As part of the studies carried out under the NEA Nuclear Development Committee, several computer tools have been used to calculate the costs of electricity generation, their various elements and their sensitivity to different paramet...
متن کامل