Dahlquist, Magnus; Robertsson, Göran; Rydqvist, Kristian - In: Journal of Empirical Finance 28 (2014) C, pp. 1-12
The paper is the first to evaluate the dividend tax clientele hypothesis using a data set of all domestic stock portfolios in the market. We find that investment funds that face a higher effective tax rate on dividend income than on capital gains tilt their portfolios away from dividend-paying...