Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/shareholder-income-taxes-and-the-relation-between-earnings-and-returns-9rQBIXKYmD
References (41)
-
S. Bhattacharya (1979)
Imperfect Information, Dividend Policy, and "The Bird in the Hand" FallacyThe Bell Journal of Economics, 10
-
Grullon Grullon, Michaely Michaely (2002)
Dividends, share repurchases, and the substitution hypothesisThe Journal of Finance, 57
-
Gustavo Grullon, Roni Michaely (2000)
Dividends, Share Repurchases, and the Substitution HypothesisSamuel Curtis Johnson Graduate School of Management at Cornell University Research Paper Series
-
E. Fama, K. French (1992)
The Cross‐Section of Expected Stock ReturnsJournal of Finance, 47
-
Jagannathan Jagannathan, Stephens Stephens, Weisbach Weisbach (2000)
Financial flexibility and the choice between dividends and stock repurchasesJournal of Financial Economics, 57
-
Michael Jensen (1986)
Agency Cost of Free Cash Flow, Corporate Finance, and TakeoversIndustrial Organization & Regulation eJournal
-
Gustavo Grullon, Roni Michaely, B. Swaminathan (2002)
Are Dividend Changes a Sign of Firm MaturityThe Journal of Business, 75
-
Franklin Allen, Antonio Bernardo, I. Welch (1998)
A Theory of Dividends Based on Tax ClientelesJournal of Finance, 55
-
R. Ball, P. Brown (1968)
An empirical evaluation of accounting income numbersJournal of Accounting Research, 6
-
R. Sias, L. Starks (1997)
Return autocorrelation and institutional investorsJournal of Financial Economics, 46
-
Carla Hayn (1995)
The information content of lossesJournal of Accounting and Economics, 20
-
D. Burgstahler, Ilia Dichev (1996)
Earnings, Adaptation, and Equity Value, 72
-
D. Ikenberry, Josef Lakonishok, Theo Vermaelen (1994)
Market Underreaction to Open Market Share RepurchasesCapital Markets: Market Efficiency
-
Jensen Jensen (1986)
Agency costs of free cash flow, corporate finance and takeoversAmerican Economic Review, 76
-
Kallapur Kallapur (1994)
Dividend payout ratios as determinants of earnings response coefficientsJournal of Accounting and Economics, 17
-
Merton Miller, Kevin Rock (1985)
Dividend Policy under Asymmetric InformationJournal of Finance, 40
-
D. Collins, Morton Pincus, Hong Xie (1999)
Equity Valuation and Negative Earnings: The Role of Book Value of EquityAccounting review: A quarterly journal of the American Accounting Association, 74
-
J. Aharony, Itzhak Swary (1980)
Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical AnalysisJournal of Finance, 35
-
D. Dhaliwal, Merle Erickson, Robert Trezevant (1999)
A Test of the Theory of Tax Clienteles for Dividend PoliciesNational Tax Journal, 52
-
D. Collins, S. Kothari (1989)
An analysis of intertemporal and cross-sectional determinants of earnings response coefficientsJournal of Accounting and Economics, 11
-
Kose John, Joseph Williams (1983)
Dividends, Dilution, and Taxes: A Signalling EquilibriumJournal of Finance, 40
-
C. Stephens, Murali Jagannathan, M. Weisbach (1999)
Financial Flexibility and the Choice between Dividends and Stock RepurchasesS&P Global Market Intelligence Research Paper Series
-
S. Benartzi, Roni Michaely, R. Thaler (1997)
Do Changes in Dividends Signal the Future or the PastJournal of Finance, 52
-
Peter Easton, M. Zmijewski (1989)
Cross-sectional variation in the stock market response to accounting earnings announcements☆Journal of Accounting and Economics, 11
-
Benjamin Ayers, C. Cloyd, John Robinson (2000)
Capitalization of Shareholder Taxes in Stock Prices: Evidence from the Revenue Reconciliation Act of 1993S&P Global Market Intelligence Research Paper Series
-
Merton Miller, F. Modigliani (1961)
DIVIDEND POLICY, GROWTH, AND THE VALUATION OF SHARESThe Journal of Business, 34
-
Walther Walther (1997)
Investor sophistication and market earnings expectationsJournal of Accounting Research, 35
-
Ikenberry Ikenberry, Lakonishok Lakonishok, Vermaelen Vermaelen (1995)
Market underreaction to open market share repurchasesJournal of Financial Economics, 39
-
W. Guay, J. Harford (2000)
The Cash-Flow Permanence and Information Content of Dividend Increases Versus RepurchasesJournal of Financial Economics, 57
-
Beverly Walther (1997)
Investor Sophistication and Market Earnings ExpectationsFinancial Accounting eJournal
-
G. Constantinides, Bruce Grundy (1989)
Optimal Investment with Stock Repurchase and Financing as SignalsReview of Financial Studies, 2
-
Benjamin Ayers, C. Cloyd, John Robinson (2002)
The Effect of Shareholder‐Level Dividend Taxes on Stock Prices: Evidence from the Revenue Reconciliation Act of 1993The Accounting Review, 77
-
Eli Bartov, S. Radhakrishnan, I. Krinsky (2000)
Investor Sophistication and Patterns in Stock Returns after Earnings AnnouncementsThe Accounting Review, 75
-
Merle Erickson, Edward Maydew (1998)
Implicit Taxes in High Dividend Yield StocksAccounting review: A quarterly journal of the American Accounting Association, 73
-
D. Dhaliwal, Oliver Li, Robert Trezevant (2003)
Is a Dividend Tax Penalty Incorporated into the Return on a Firm's Common Stock?Journal of Accounting and Economics, 35
-
Sanjay Kallapur (1994)
Dividend payout ratios as determinants of earnings response coefficients: A test of the free cash flow theory☆Journal of Accounting and Economics, 17
-
W. Beaver (1968)
The Information Content Of Annual Earnings Announcements -
Doron Nissim, Amir Ziv (2001)
Dividend Changes and Future ProfitabilityJournal of Finance, 56
-
Roger Kormendi, R. Lipe (1987)
Earnings Innovations, Earnings Persistence, and Stock ReturnsThe Journal of Business, 60
-
P. Asquith, D. Mullins (1983)
The Impact of Initiating Dividend Payments on Shareholders' WealthThe Journal of Business, 56
-
(2000)
Capitalization of Capital Gains Taxes: Evidence from Stock Price Reactions to the 1997 Rate Reduction
- Publisher
- Wiley
- Copyright
- 2005 Canadian Academic Accounting Association
- ISSN
- 0823-9150
- eISSN
- 1911-3846
- DOI
- 10.1506/9QEL-CKDY-MJ40-0QDQ
- Publisher site
- See Article on Publisher Site
Abstract
The purpose of this study is to investigate whether and how shareholder‐level taxes affect earnings response coefficients (ERCs). Our tests indicate that when the tax rate on dividends increases, ERCs decrease for firms with high levels of dividend yield and whose marginal investor is likely to be an individual. For firms with high levels of share repurchase yield and whose marginal investor is likely to be an individual, an increase in dividend tax rate has no discernible effect on ERCs. These results are consistent with the notion that the tax penalty on dividends, relative to capital gains, reduces the earnings‐return relation.
Journal
Contemporary Accounting Research – Wiley
Published: Sep 1, 2005