We examine the hypothesis that dividend taxes are capitalized into share prices by focusing on investors' implicit … valuations of retained earnings versus paid-in equity. Retained earnings are distributable as taxable dividends, whereas paid …-in equity is distributable as a tax-free return of capital. Consistent with dividend tax capitalization, firm-level results for …

share prices of other firms. Among firms paying dividends, the change in share prices was decreasing in dividend yields. The …We empirically document that stock prices moved inversely with dividend yields during the May, 1997 week, when the … of firms not currently paying dividends increased approximately 6 percentage points more over a five-day window than the …

Dividends seem to be more heavily taxed than capital gains. Why then do corporations pay dividends rather than … shareholders desire dividends sufficiently for nontax reasons to offset the tax effect. In this paper, we measure the relative … valuation of dividends and capital gains in the stock market, using a variant of the capital asset pricing model. We find that …

This paper tests several competing hypotheses about the economic effects of dividend taxation. It employs British data … on security returns, dividend payout rates, and corporate investment, because unlike the United States, Britain has … experienced several major dividend tax reforms in the last three decades. These tax changes provide an ideal natural experiment …

Financial economists have debated the impact of dividend taxes on firm valuation for decades, but existing empirical … institutional characteristics of Real Estate Investment Trusts (REITs). For REITs, dividend policy is largely non …-discretionary, share repurchases are not tax advantaged relative to dividends, and the market value of a firm's assets is relatively …

This paper uses British data to examine the effects of dividend taxes on investors' relative valuation of dividends and … capital gains. British data offer great potential to illuminate the dividends and taxes question, since there have been two … radical changes and several minor reforms in British dividend tax policy during the last twenty-five years. Studying the …

models incorporating differential taxation of dividends and capital gains are nested as systems of time series regressions …This paper examines the empirical relation between stock returns and dividend yields. Several equilibrium pricing … dividends are neutral. The inability to distinguish between these competing hypotheses suggests the need for further research …

This paper investigates the effects of increased cash dividend payout, and of "forced realizations~ of capital gains in … States, Great Britain, and Canada suggests that higher dividend tax rates lower consumption. This is consistent with such tax …

.5 percent of dividends. These effects would disappear if the United States were to exempt foreign income from taxation …This paper analyzes the effect of repatriation taxes on dividend payments by the foreign affiliates of American … percent lower repatriation tax rates are associated with one percent higher dividends. This implies that repatriation taxes …

distribute large dividends initially in response to the temporary dividend tax cut. We also find that the effects of a temporary …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 …