Journal of Accounting and Economics Vol. 35 No. 2 2003
Is a dividend tax penalty incorporated into the return on a firm's common stock?
Abstract
We find that a firm's dividend yield has a positive impact on its common stock return that is decreasing in the level of institutional and corporate ownership, our indicator of whether the marginal investor in a firm's common stock is more likely to be a low-tax or a high-tax investor. These results suggest that (1) a dividend tax penalty is incorporated into the return on a firm's common stock and (2) both a firm's dividend policy and its ownership structure impact the size of the dividend tax penalty.
- DOI
- 10.1016/s0165-4101(03)00017-x
- Volume
- 35
- Issue
- 2
- Pages
- 155-178
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref