TY - JOUR
T1 - Multiple clientele influence on ex-dividend day price performance
AU - Armstrong, Vaughn S.
AU - Hoffmeister, J Ronald
PY - 2012/9
Y1 - 2012/9
N2 - This paper considers a change in U.S. dividend taxation for qualified public utility stocks from 1982 through 1985. The change affects some of the highest dividend-yielding U.S. stocks and allows individuals to defer payment of income tax on dividends, ultimately paying tax at capital gains rates, and reduces individual income tax rates. This paper examines these stocks' ex-dividend day performance before, during, and after this tax-law change. Results provide evidence that multiple clienteles, not a single marginal investor, determine ex-dividend day pricing for these stocks.
AB - This paper considers a change in U.S. dividend taxation for qualified public utility stocks from 1982 through 1985. The change affects some of the highest dividend-yielding U.S. stocks and allows individuals to defer payment of income tax on dividends, ultimately paying tax at capital gains rates, and reduces individual income tax rates. This paper examines these stocks' ex-dividend day performance before, during, and after this tax-law change. Results provide evidence that multiple clienteles, not a single marginal investor, determine ex-dividend day pricing for these stocks.
KW - Dividend taxation
KW - Ex-dividend day performance
KW - High dividend-yield stocks
KW - Public utilities
KW - Tax clienteles
UR - http://www.scopus.com/inward/record.url?scp=84861731684&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84861731684&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2011.11.005
DO - 10.1016/j.jbusres.2011.11.005
M3 - Article
AN - SCOPUS:84861731684
SN - 0148-2963
VL - 65
SP - 1235
EP - 1242
JO - Journal of Business Research
JF - Journal of Business Research
IS - 9
ER -