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 …

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 …

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 …