Journal article
The Role of Personal Taxes in Corporate Decisions: An Empirical Analysis of Share Repurchases and Dividends
Journal of financial and quantitative analysis, Vol.34(4), pp.533-552
12/01/1999
DOI: 10.2307/2676233
Abstract
This study investigates the impact of personal taxation on corporate managers' choices between share repurchases and dividends as a means of disbursing cash. Consistent with the notion that personal taxation influences the choice of disbursement method, we find that managers are more likely to choose a share repurchase if the firm has a low dividend yield, if the firm's stock has experienced losses or small recent capital gains, and if the payout occured before the Tax Reform Act of 1986. Further, managers are more sensitive to the shareholders' tax situations if institutional investors hold a large fraction of the shares.
Details
- Title: Subtitle
- The Role of Personal Taxes in Corporate Decisions: An Empirical Analysis of Share Repurchases and Dividends
- Creators
- Erik Lie - William & MaryHeidi J. Lie - William & Mary
- Resource Type
- Journal article
- Publication Details
- Journal of financial and quantitative analysis, Vol.34(4), pp.533-552
- Publisher
- Cambridge University Press
- DOI
- 10.2307/2676233
- ISSN
- 0022-1090
- eISSN
- 1756-6916
- Number of pages
- 20
- Language
- English
- Date published
- 12/01/1999
- Academic Unit
- Finance
- Record Identifier
- 9984380478702771
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