I investigate the link between dividend taxes and stock prices in a global setting. Based on findings from an open …-economy after-tax capital asset pricing model, I predict that when the U.S. cut its dividend tax rate in 2003, stock prices will … increase for high-dividend yield foreign firms that are eligible for a U.S. income tax treaty. I examine returns for firms …

We propose a behavioral dividend clientele view to explain a unique “ex-dividend day” anomaly on the Chinese stock … market. In particular, we find that on the ex-dividend day, the average CAPM-adjusted stock return is significantly below … of dividend paying stocks prior to the ex-dividend day and switch to net sellers of on and after the ex-dividend day …