The taxation of dividends in Germany underwent major changes. We analyze the implications of these changes for the … valuation of DAX futures contracts and test the resulting hypotheses empirically. We find that dividend taxation cannot explain …. Multivariate regressions confirm the finding that dividend taxation affects futures prices. …

-free dividend. Tax-free dividends are temporarily tax-exempt, as they reduce the initial purchasing price of a stock. With our …We examine stock prices and the number of stocks traded around ex-dividend dates of German stocks with tax … empirical results indicate that ex-date prices decline, on average, by the amount of the dividend. We do not find a significant …

into the implications of the distributed profit taxation ( DPT ) system in Estonia for corporate value creation. Under the … Estonian system of corporate taxation, companies need not pay income tax on undistributed earnings, allowing them to postpone … taxation of profits under traditional (or classical) ( TPT ) and DPT systems. A TPT system is a system where the amount of …

We examine the hypothesis that dividend taxes are capitalized into share prices by focusing on investors' implicit … valuations of retained earnings versus paid-in equity. Retained earnings are distributable as taxable dividends, whereas paid …-in equity is distributable as a tax-free return of capital. Consistent with dividend tax capitalization, firm-level results for …

share prices of other firms. Among firms paying dividends, the change in share prices was decreasing in dividend yields. The …We empirically document that stock prices moved inversely with dividend yields during the May, 1997 week, when the … of firms not currently paying dividends increased approximately 6 percentage points more over a five-day window than the …

Dividends seem to be more heavily taxed than capital gains. Why then do corporations pay dividends rather than … shareholders desire dividends sufficiently for nontax reasons to offset the tax effect. In this paper, we measure the relative … valuation of dividends and capital gains in the stock market, using a variant of the capital asset pricing model. We find that …