Dividends and politics

Bank, Steven A.; Cheffins, Brian R.; Goergen, Marc

doi:10.1016/j.ejpoleco.2009.01.002

Cited by 23 publications

(18 citation statements)

References 29 publications

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“…In particular, the UK imputation system up to 5 April 1997 significantly favours dividend payments compared to the US for both individuals and pension funds and thereafter still favours dividend payments to individuals. The abolition of advance corporation tax in April 1999 did not offer this (Bank et al, 2006). Oswald and Young (2008:51-2) provide detailed information on dividends and UK tax legislations.…”

Section: Introductionmentioning

confidence: 99%

The effects of voluntary disclosure and dividend propensity on prices leading earnings

Hussainey

Walker

2009

Accounting and Business Research

107

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We investigate the joint effects of dividend propensity (i.e. whether a firm pays cash dividends) and voluntary disclosure on the relation between current stock returns and future earnings. We examine whether dividend propensity and voluntary disclosure act as substitutes or complements in the financial communication process. We also examine whether the effects of dividend propensity and voluntary disclosure vary between high and low growth firms.Consistent with prior studies, we find that share price anticipation of earnings improves with increasing levels of annual report narrative disclosure, and that firms that pay dividends exhibit higher levels of share price anticipation of earnings than non-dividend-paying firms.The paper adds to the literature on share price anticipation of earnings in two crucial respects. First we show that the associations of voluntary disclosure and dividend propensity with share price anticipation of earnings are statistically significant for high growth firms and insignificant for low growth firms. Second we show that the significant effects we find for dividend propensity and voluntary disclosure in high growth firms are not perfectly additive.

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Section: Introductionmentioning

confidence: 99%

The effects of voluntary disclosure and dividend propensity on prices leading earnings

Hussainey

Walker

2009

Accounting and Business Research

107

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“…ACT exceeding this limit was referred to as 'surplus ACT' and could be carried backward and forward. 18 Nevertheless, if a company's corporate tax liability persistently lagged behind the amount of its ACT payment, the option expired (Bank et al, 2004). Hence, if the taxable profits were not sufficient or stemming from overseas, corporations were not able to get full ACT relief and faced what is known as the surplus ACT problem (Shirley, 1997).…”

Section: Prior To September 21 1994mentioning

confidence: 99%

“…We contribute to the literature in the following way: First, with exception of Bell and Jenkinson (2002) who focus on the impact of the 1997 reform on institutional shareholders, Bank, Cheffins, and Goergen (2004) who investigate the relation between politics and dividend payout, and Bond et al (2007) who study the effect of taxes on corporate valuation, there is hardly any research investigating the effect of taxation on payout decisions in the UK. This paper is to our knowledge the first to address the effect of taxation on the earnings distribution method.…”

Section: Introductionmentioning

confidence: 99%

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Taxes, Earnings Payout, and Payout Channel Choice

Geiler

Renneboog

2014

SSRN Journal

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Abstract:We study the tax regulations in relation to dividends and capital gains over the last two decades for the UK in order to determine whether changes in tax regimes affect corporate payout policy (dividends, share repurchases, or a combination). While we can identify investors' tax-driven preferences for a specific payout channel, we find no evidence of tax-induced clienteles. Firms do indeed not cater to the tax preferences of their shareholders (including individuals, pension funds, corporations). Other factors, such as equity-based compensation received by the CEO and investor sentiment in the form of optimism reduce the dividend payout and increase the use of share repurchases.Keywords: payout policy, dividends, share repurchases, taxation, regulation.JEL codes: G28, G30, G35, G38.

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“…5 Politics can also influence firms through more indirect channels. For example, Bank, Cheffins, and Goergen (2009) link dividend payments to the political orientation to the party in power.…”

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confidence: 99%

German MPs' Outside Jobs and Their Repercussions on Parliamentary Effort

Arnold

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract It is a longstanding debate whether members of parliament (MPs) should be allowed to follow sideline jobs in addition to their mandate. Critics claim that politicians already face binding time constraints and that moonlighting might lead to a neglect of inner-parliamentary duties. The purpose of this study is therefore to investigate whether politicians with more sideline jobs show less effort inside parliament. To address this question, I collected novel data on German members of parliament from 2009-2013. Using a selection on observables approach that controls for legislator ability, I find that higher outside earnings are associated with a significantly lower attendance rate as well as fewer speeches, oral contributions, interpellations and group initiatives. These results are robust to a variety of tests. My findings suggest that time caps on moonlighting along with stricter disclosure rules for outside activities might be necessary. Terms of use: Documents in

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Dividends and politics

Cited by 23 publications

References 29 publications

The effects of voluntary disclosure and dividend propensity on prices leading earnings

The effects of voluntary disclosure and dividend propensity on prices leading earnings

Taxes, Earnings Payout, and Payout Channel Choice

German MPs' Outside Jobs and Their Repercussions on Parliamentary Effort

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