explanation for the heretofore puzzling finding that, following the unprecedented 2003 reduction in dividend tax rates, non-dividend …-paying firms outperformed dividend-paying firms. Not surprisingly, we find that non-dividend-paying firms are more financial … constrained than dividend-paying firms are. When a firm's financial constraint and dividend choice are jointly considered, we find …

their dynamics. Using the model, we price dividend strips of the aggregate market index, as well as any other well …-diversified equity portfolio. We do not use any dividend strips data in the estimation of the model; however, model-implied equity yields … generated by the model match closely the equity yields from the traded dividend forwards reported in the literature. Our model …

To study the long-run effect of dividend taxation on aggregate capital accumulation, we build a dynamic general … equilibrium model in which there is a continuum of firms subject to idiosyncratic productivity shocks. We find that a dividend tax … model simulations show that when both dividend and capital gains tax rates are cut from 25 and 20 percent, respectively, to …

This paper tests whether the 2003 dividend tax cut--one of the largest reforms ever to a U.S. capital tax rate … models in which dividend tax reforms affect the cost of capital. Either way, it may be difficult to implement an alternative … dividend tax cut that has substantially larger near-term effects …

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 …