Bali, Rakesh; Francis, Jack C. - In: Applied Economics Letters 19 (2012) 6, pp. 537-540
We tested how dividend pricing is impacted by the reduction in capital gains tax rate to 20% (May 1997) and the move to trading in 6.25¢ (June 1997). Price behaviour does not support tax clienteles but is consistent with transaction costs-based explanation. Raw returns, for all groups, are...