Tax reform and the identity of marginal traders around ex-dividend days

Tseng, Yun-lan; Hu, Sheng Cheng

doi:10.1016/j.pacfin.2013.08.009

Cited by 5 publications

(3 citation statements)

References 21 publications

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“…Also, investors involve with overnight arbitrage opportunities if transaction costs are low and dividend yield is high enough. Similarly, Tseng and Hu (2013) study the relationship between taxes and investor behaviour around ex-dividend days before and after the 1998 tax reform in Taiwan. They find that only domestic investors engaged in arbitrage opportunities before the reform but, after the reform, all investors (both domestic and foreign) aggressively act as short-term arbitrageurs around ex-dividend days.…”

Section: Studies Of the Relationship Between Dividend Yields And Riskmentioning

confidence: 99%

What do we know about the dividend puzzle? – A literature survey

Al‐Najjar

Kılınçarslan

2019

IJMF

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This paper aims to shed light on the ongoing debate of dividend policy, which is considered one of the most controversial topics in corporate finance literature. We, first, outline the main theoretical arguments of dividend policy and then critically discuss the most important and influential previous empirical studies in the dividend literature. We detect that no general consensus has yet been reached after many decades of investigation, despite extensive debate and countless research. Consequently, the main motivation for paying dividends is still unsolved and thus remains as a puzzle. In addition, there is no doubt that carrying the dividend debate into the context of emerging markets attaches more pieces to this puzzle.

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Section: Studies Of the Relationship Between Dividend Yields And Riskmentioning

confidence: 99%

What do we know about the dividend puzzle? – A literature survey

Al‐Najjar

Kılınçarslan

2019

IJMF

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“…Thus, there should be more sell (buy) imbalances on the final cum‐dividend (ex‐dividend) date, decreasing (increasing) the cum‐dividend (ex‐dividend) closing price. Tseng and Hu (2013) provide evidence corroborating dividend aversion behavior, showing that prior to major tax reforms in Taiwan, both small and large individual investors were net buyers on the ex‐dividend date, resulting in smaller price‐drop relative to the cash dividend. Given technological advances that allow retail brokerages to directly deposit dividend distributions into a retail investor's account, mitigating potential dividend aversion costs, it is unlikely that investors experience aversion costs in the modern market.…”

Section: Hypothesis Developmentmentioning

confidence: 87%

Where does ex‐dividend trading occur: An examination of trading venues around dividends

Cox,

Fuller,

Van Ness

2023

The Financial Review

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We examine the fragmentation of trading around the ex‐dividend date. We argue that the taker‐maker and dark trading venues provide potential dividend capture traders a more favorable platform than the maker‐taker venue(s) given the price improvement, lower queues, and lower net transaction costs. Our evidence indicates that taker‐maker (dark) venue market share decreases (increases) on cum‐dividend days but reverts to normal levels on the ex‐dividend day. Additionally, we find fragmented trading impacts the ex‐dividend price change and improves price efficiency. Finally, we find evidence that retail trades are associated with potential dividend‐capture trading.

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“…‫عمي‬ ‫تبة‬ ‫المتر‬ ‫اآلثار‬ ‫و‬ ‫يبى‬ ‫الضر‬ ‫اإلصبلح‬ ‫تطبيؽ‬ (Zhang, et al, 2013;Ghiaie et al, 2019;Magnani & Piccoli, 2020;Gnangnon, 2021) ‫بعض‬ ‫اىتمت‬ ‫ة‬ ‫األخير‬ ‫ات‬ ‫السنو‬ ‫فى‬ ‫ولكف‬ . ‫الحصيمة‬ ‫تعظيـ‬ ‫فى‬ ‫قمنة)‬ ‫(الر‬ ‫االتصاالت‬ ‫و‬ ‫المعمومات‬ ‫تكنولوجيا‬ ‫بدور‬ ‫اسات‬ ‫الدر‬ ‫يبية‬ ‫الضر‬ (Chatam, 2013;Boedo, 2018 (Shim & Jung, 2012;Angelopoulos et al, 2013;Oueslati, 2014;Fujiwara, 2014;Zou & Chen, 2016;Choi et al, 2017;Auray et al, 2017;Raei, 2020) ‫يف‬ ‫المستثمر‬ ‫سموؾ‬ ، ‫وتقمبات‬ ‫األسيـ‬ ‫ائد‬ ‫عو‬ (Tseng & Hu, 2013;Hayashida & Ono, 2016) ‫المستيمؾ‬ ‫سموؾ‬ ، (Klenert & Mattauch, 2016;Zhong, et al, 2018;Xu et al,…”

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استخدام تکلفة الإصلاح الضریبى الرقمى فى ضبط مؤشرات المالیة العامة فى مصر (دراسة تطبیقیة)

زهر¹

2021

المجلة العلمیة للبحوث التجاریة

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The research aims to examine the ability of the cost of digital tax reform to control the performance of public finances in Egypt. To achieve this aim, the researcher used the multiple regression method to analyze the ability of the cost of digital projects implemented in various tax departments in Egypt to explain the level of public finance performance during the first five years of adopting the digital tax reform approach (2014/2015 -2019/2018). The researcher relied on five indicators for the performance of public finance are: the public revenue ratio, the public expenses ratio, the total deficit ratio, the cash deficit ratio, and the primary deficit ratio. The researcher reached several results, the most important of which are: There is a significant effect of the cost of digital tax reform on all public finance performance indicators, except for the public expenses ratio. And that this effect was negative for the percentage of public revenues, and positive for the rest of the indicators.The researcher recommended the necessity of paying attention to the cost of the digital tax reform as one of the explanatory factors for the performance of public finances in Egypt, and that containing the public budget deficit of all kinds requires taking into account the costs of the project of customs port buildings, the costs of the real estate tax collection devices project, the costs of the government spending mechanization project, The costs of the information technology project in the Minister"s office sector, the costs of the value-added tax collection devices project.

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Tax reform and the identity of marginal traders around ex-dividend days

Cited by 5 publications

References 21 publications

What do we know about the dividend puzzle? – A literature survey

What do we know about the dividend puzzle? – A literature survey

Where does ex‐dividend trading occur: An examination of trading venues around dividends

استخدام تکلفة الإصلاح الضریبى الرقمى فى ضبط مؤشرات المالیة العامة فى مصر (دراسة تطبیقیة)

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