The impact of the dividend tax cut and managerial stock holdings on corporate dividend policy

Autor:	Ge Zhang, Jouahn Nam, Jun Wang
Rok vydání:	2010
Předmět:	Economics and Econometrics Incentive Financial economics Dividend payout ratio Economics Dividend yield Dividend Dividend policy Dividend tax Tax law Finance Stock (geology)
Zdroj:	Global Finance Journal. 21:275-292
ISSN:	1044-0283
DOI:	10.1016/j.gfj.2010.09.005
Popis:	We examine the impact of the May 2003 dividend tax cut and managerial stock holdings on corporate dividend initiation. We find that executives who hold sizable stakes in their companies become more likely to initiate dividends following this tax cut. The firms that initiate dividends after the tax cut are more profitable than firms that initiate dividends before the tax cut. The market appears to recognize the managers’ incentive change after the tax law change. Firms with higher managerial stock holdings receive lower abnormal returns from announcing dividend initiation.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ebc35809417ee7183c03d5c8d0277840 https://doi.org/10.1016/j.gfj.2010.09.005 Zobrazit plný text záznamu Full Text from ScienceDirect