This paper offers a novel explanation for why some firms prefer to pay dividends rather than repurchase shares. It is … clientele" effects. We argue that these clientele effects are the very reason for the presence of dividends, because … institutions have a relative advantage in monitoring firms or in detecting firm quality. Firms paying dividends attract relatively …

dividends. This stability of dividends does not support the predictions suggested by the high bank leverage, absence of taxes … loans, there are no taxes on dividends and capital gains, and there is variability in cash dividend payments. These factors … environment where firms distribute almost 100 percent of their profits in dividends, firms are highly levered mainly through bank …

-related literature on dividends explores the implications of differential taxes on dividends and capital gains on stocks’ valuation and … role of taxes, asymmetric information, incomplete contracting possibilities, and transaction costs. The tax … firms’ propensity to pay out cash in the form of dividends. The issues investigated in this literature are of central …

This chapter reviews tax research related to whether corporate and personal taxes affect domestic and multinational … topic, theory related to how taxes can affect corporate decision making and firm value is reviewed, followed by a summary of … measuring the effect of investor-level taxes on corporate actions. …

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 …

the fact that it can take can be a considerable time lag from the time a dividend based trade is made until taxes have to …