Brown, Jeffrey R.; Liang, Nellie; Weisbenner, Scott - Federal Reserve Board (Board of Governors of the … - 2006
Using the 2003 reduction in dividend tax rates to identify an exogenous change in the after-tax value of dividends to shareholders, we test whether stock holdings among company executives is an important determinant of payout policy. We have three primary findings. First, we find that when top...