We examine a type of distribution that is taxed as a capital gain rather than as a dividend. Since the distribution induces a realized capital gain while the price change on the ex-distribution day is an unrealized gain, ex-day return behavior provides evidence of the value of tax-timing capital...

The importance of cash-flow uncertainty in payout policy has received little attention in empirical studies, while survey studies such as Linter (1956) and Brav, Graham, Harvey and Michaely (2005) indicate its importance. We conduct comprehensive analysis of its importance in payout policy. With...