Amromin, Gene; Harrison, Paul; Liang, Nellie; Sharpe, Steve - Federal Reserve Board (Board of Governors of the … - 2005
We examine the effects of the 2003 dividend tax cut on U.S. stock prices and corporate payout policies. First, using an event-study methodology, we compare the performance of U.S. stocks to that of other securities that should not have benefited from the tax change. We find that U.S. large-cap...