This article evaluates the efficiency of existing dividend distribution tax in India from the perspective of investors’ preference pattern, as revealed in the market. It investigates the announcement effect of dividend in India in the presence of dividend distribution tax with specific...

The article first looks at the working of an open economy under a situation of price flexibility in a static framework. This extends the Mundell–Fleming model and shows the effect of exchange rate movement in a richer perspective. The article then introduces the role of depreciation of...