Johnson proposes that shareholder gain from a dividend be determined based on the shareholder's own situation rather … shareholder's basis by reason of the dividend, the shareholder has lost some investment, and the dividend is recovery of basis in … full or in part. If the stock value is higher than shareholder basis even after the dividend, the shareholder has gain only …

, we use a dividend discount model and values from a hypothetical company. The equity value under DPT is also higher when …

taxes on stock prices around ex-dividend days while avoiding the non-tax confounds and inter-temporal tests that have … distributions, we provide evidence that abnormal returns and trading volume around ex-dividend days are driven by the component of … the distributions that is most tax-penalized. Our results support a tax-based explanation for ex-dividend day pricing and …