Book/Printed Material The 2003 dividend tax cuts and the value of the firm an event study

Title

• The 2003 dividend tax cuts and the value of the firm an event study

Summary

• "The "Jobs and Growth Tax Relief Act of 2003" (JGTRA03) contained a number of significant tax provisions, but the most noteworthy may have been the reduction in dividend tax rates. The political debate over the dividend tax reductions of 2003 took a number of surprising twists and turns. Accordingly, it is likely that the views of market participants concerning the probability of significant dividend tax reduction fluctuated significantly during 2003. In this paper, we use this fact to estimate the effects of dividend tax policy on firm value. We find that firms with higher dividend yields benefited more than other dividend paying firms, a result that, in itself, is consistent with both new and traditional views of dividend taxation. But further evidence points toward the new view and away from the traditional view. We also find that non-dividend-paying firms experienced larger abnormal returns than other firms as the result of the dividend tax cut, and that a similar bonus accrued to firms likely to issue new shares, two results that may appear surprising at first but are consistent with the theory developed in the paper"--National Bureau of Economic Research web site.

Names

• Auerbach, Alan J.
• Hassett, Kevin A.
• National Bureau of Economic Research

Created / Published

• Cambridge, MA : National Bureau of Economic Research, c2005.

Headings

• -  Capital gains--United States
• -  Corporations--Taxation--United States
• -  Corporations--Valuation--United States
• -  Dividends--United States

Notes

• -  Title from PDF file as viewed on 7/7/2005.
• -  Includes bibliographical references.
• -  Also available in print.
• -  Mode of access: World Wide Web.
• -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

• HB1

Digital Id

• https://hdl.loc.gov/loc.gdc/gdcebookspublic.2005618372
• http://papers.nber.org/papers/W11449 External

Library of Congress Control Number

• 2005618372

Access Advisory

• Unrestricted online access

Online Format

• image
• pdf

LCCN Permalink

• https://lccn.loc.gov/2005618372

Additional Metadata Formats

• MARCXML Record
• MODS Record
• Dublin Core Record