search query: @author Michaely, R. / total: 11
reference: 5 / 11
| Author: | Hubbard, J. Michaely, R. |
| Title: | Do investors ignore dividend taxation? A reexamination of the citizens utilities case |
| Journal: | Journal of Financial and Quantitative Analysis
1997 : MAR, VOL. 32:1, p. 117-135 |
| Index terms: | UTILITY FUNCTIONS INVESTORS TAXATION |
| Language: | eng |
| Abstract: | Citizens Utilities Company (CU) has two classes of common stock, one paying stock dividends and another paying cash dividends. The price of the cash dividend shares should increase relative to the stock dividend shares after 1986 tax change, unless CU shareholders ignore dividend taxation. On the contrary, it was found that the relative valuation of these classes of shares was not permanently affected by the tax change. Clientele effects and differences in liquidity are the possible explanations for the observed valuation of the two stocks, and neither of these explanations can account for the relative pricing of the shares. |
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