Time-Series Variation in Dividend Pricing

Eades, Kenneth M.; Hess, Patrick J.; Kim, E. Han

doi:10.2307/2329265

Cited by 33 publications

(36 citation statements)

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“…11 A counter cyclical dividend yield is confirmed by other studies in literature (Gordon and Bradford 1980, Pilotte 2003, and Eades, Hess, and Kim 1994. …”

Section: Stylized Facts Regarding Internal Fundssupporting

confidence: 54%

A Financial Sector Balance Approach and the Cyclical Dynamics of the U.S. Economy

Casadio

Paradiso

2009

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. Terms of use: Documents in September 2009* The authors are grateful to Claudio Sardoni, Luigi Ventura, and Gennaro Zezza for helpful comments on a previous version of this paper. E-mail: paolo.casadio@yahoo.it; anto_paradiso@hotmail.com.The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals.The Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

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“…11 A counter cyclical dividend yield is confirmed by other studies in literature (Gordon and Bradford 1980, Pilotte 2003, and Eades, Hess, and Kim 1994. …”

Section: Stylized Facts Regarding Internal Fundssupporting

confidence: 54%

A Financial Sector Balance Approach and the Cyclical Dynamics of the U.S. Economy

Casadio

Paradiso

2009

SSRN Journal

View full text Add to dashboard Cite

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“…The smaller-than-dividend price decline has been attributed to transactions costs (Kalay, 1982) and market microstructure effects (Bali and Hite, 1998). In addition, Eades et al (1994) find that variation in ex-day behavior is unrelated to changes in the tax regime and Frank and Jagannathan (1998) find evidence of ex-day price drop ratios less than one in Hong Kong, a country with no investor taxes.…”

Section: Ex-dividend Day Studiesmentioning

confidence: 99%

A review of tax research

Hanlon¹,

Heitzman²

2010

Journal of Accounting and Economics

2,139

646

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Abstract:In this paper, we present a review of tax research. We survey four main areas of the literature: 1) the informational role of income tax expense reported for financial accounting, 2) corporate tax avoidance, 3) corporate decision-making including investment, capital structure, and organizational form, and 4) taxes and asset pricing. We summarize the research areas and questions examined to date and what we have learned or not learned from the work completed thus far. In addition, we provide our opinion as to the interesting and important issues for future research. ______________________This paper was prepared for the 2009 Journal of Accounting and Economics Conference. We appreciate comments from Scott Dyreng, Mihir Desai (discussant), S.P. Kothari (editor), John Long, Ed Maydew, Lillian Mills, Tom Omer, Sonja Rego, Doug Shackelford, Terry Shevlin, Joel Slemrod, Cliff Smith, David Weber, Ryan Wilson, Jerry Zimmerman, George Zodrow, and conference participants at the JAE Conference as well as at the 2009 University of North Carolina Tax Symposium and the discussant there, Bill Gentry. All errors and omissions are our own. * Corresponding author: 100 Main Street, Cambridge, MA. email: mhanlon@mit.edu. 1 A Review of Tax Research IntroductionIn this paper, we review tax research in accounting as well as tax research in economics and finance to the extent that it is related to or is affected by research in accounting. Shackelford and Shevlin (2001) provide a careful and thorough review of empirical tax research in accounting in the prior Journal of Accounting and Economics review volume. Shackelford and Shevlin limit their review to research published in accounting outlets and describe the development of the relatively young archival, microeconomic-based income tax literature that arose from the Scholes andWolfson framework. In his discussion of the review, Maydew (2001) emphasizes the need for tax researchers in accounting to think more broadly and to incorporate more theory and evidence from economics and finance. We agree. Tax research has a long history in many disciplines; this fact cannot be ignored. Our goal in this paper is to integrate the theoretical and empirical tax research from accounting, economics, and finance, to summarize what is known and unknown, and to offer suggestions for future research.The multidisciplinary nature of tax research is what makes tax research exciting (yes, exciting), yet difficult. Tax research can be difficult not only because one has to follow tax studies in accounting, finance, economics, and law (through academic institutions, governmental agencies, and policy think tanks), but also because different disciplines often use different languages and have different perspectives. 1 For example, economists generally focus on tax compliance, tax incidence (such as who bears the corporate tax), investment and economic growth effects (such as how taxes 1 Slemrod (1992a) characterizes these differences as economists studying what corporations actually do and accountants stud...

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“…However, empirical works on this issue generally find that, on average, stock prices in our less than perfect world drop by less than the dividend amount on the exdividend date (e.g., Elton & Gruber, 1970;Michaely, 1991;and Eades, Hess, & Kim, 1994). The most popular explanation for this anomaly is Elton and Gruber's tax clientele hypothesis.…”

Section: Introductionmentioning

confidence: 99%