We test the price pressure hypothesis using a novel setting: open-market purchases of shares in closed-end mutual funds by dividend reinvestment plans (DRIP). Abnormal volume, returns and intraday data around dividend payment dates provide evidence consistent with upward price pressure created...

We investigate whether security prices reflect the tax rhetoric of opposing candidates during the 1992 U.S. Presidential campaign. We use daily data from the Iowa Political Stock Market to measure changes in the likelihood that the candidate advocating an increase in individual income tax rates...

The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) significantly reduces the maximum tax rate imposed on dividend income received in 2003 through 2008 by individual shareholders. Using data from call reports filed with the Federal Reserve Board, we investigate whether federally...

We examine ex-dividend day stock price behavior before and after the NYSE converted from discrete (1/16ths) to decimal pricing systems in early 2001, as well as the effect of equalizing the federal income tax rates on dividend and long-term capital gain income in May 2003. Prior literature...

As a direct response to the recent trend in corporate expatriations, politicians have questioned the patriotism of firms that reorganize outside the U.S. and introduced numerous legislative proposals designed to prevent corporate expatriations. The implicit assumption made in proposing this...

We investigate the capitalization of shareholder-level taxes into stock values and provide evidence that capitalization of dividend taxes is influenced both by dividend policy and institutional ownership. We regress weekly abnormal stock returns surrounding the passage of the Revenue...

We investigate the effect of taxes on the utilization of inside debt (loans from owners) and outside debt (loans from non-owners) across small businesses organized as taxable corporations and flow-through entities (Subchapter S corporations and part-nerships). We find that the tax incentives to...