This paper investigates the effects of capital gains and dividend taxes on excess returns around announcements of … dividend increases and ex-dividend days for U.S. corporations. Consistent with standard no-arbitrage conditions, we find that … the ex-dividend day premium increased from 2002 to 2004 when the dividend tax rate was cut. Consistent with the signalling …

noteworthy may have been the reduction in dividend tax rates. The political debate over the dividend tax reductions of 2003 took … probability of significant dividend tax reduction fluctuated significantly during 2003. In this paper, we use this fact to … estimate the effects of dividend tax policy on firm value. We find that firms with higher dividend yields benefited more than …

We test whether executive stock ownership affects firm payouts using the 2003 dividend tax cut to identify an exogenous … dividends after the tax cut in 2003, whereas no relation is found in previous periods when the dividend tax rate was higher …

This paper analyzes the effects of dividend taxation on corporate behavior using the large tax cut on individual … dividend income enacted in 2003. Using data spanning 1980 to 2004-Q2, we document a sharp and widespread surge in dividend … payments following the tax cut, along several dimensions. First, an unprecedented number of firms initiated regular dividend …

We develop a dynamic general equilibrium model to study the impact of the 2003 dividend and capital gains tax cuts. In … adjustment costs, equity issuance costs, and collateral constraints. We show that when the dividend and capital gains tax cuts … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …

Act of 2003" on firm valuation. That paper found that firms with higher dividend yields benefited more than other dividend … paying firms, a result that, in itself, is consistent with both new and traditional views of dividend taxation. But further … evidence favored the new view. We also found that non-dividend-paying "immature" firms experienced larger abnormal returns than …