Persistent Link:
http://hdl.handle.net/10150/194134
Title:
The Effect of Shareholder Taxes on Corporate Payout Choice
Author:
Moser, William J.
Issue Date:
2005
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
This study investigates whether the difference in individual shareholder tax rates between dividend income and capital gain (the dividend tax penalty) affects a firm's choice between distributing funds to shareholders through dividends or share repurchases. The results of this study suggest that, in periods in which the dividend tax penalty increases, firms are more likely to distribute funds to shareholders through share repurchases as opposed to dividends. The results also indicate that the relationship between the dividend tax penalty and corporate payout choice is affected by the types of shareholders who own stock in the firm. As managerial share ownership increases and the dividend tax penalty increases firms are more likely to make distributions to shareholders in the form of share repurchases. As aggregate institutional ownership increases and the dividend tax penalty increases, firms are neither more likely to repurchase shares nor more likely to distribute dividends. Division of the institutional ownership category indicates that institutions classified as mutual funds and investment advisors (brokers) have the strongest preference for share repurchases as the dividend tax penalty increases. In contrast, institutions classified as banks, insurance companies and other institutions have the smallest preference for share repurchases as the dividend tax penalty increases. The implication of this study is that individual shareholder taxes affect firms' corporate payout choice.
Type:
text; Electronic Dissertation
Keywords:
Shareholder Taxes; Dividends; Share Repurchases
Degree Name:
PhD
Degree Level:
doctoral
Degree Program:
Accounting; Graduate College
Degree Grantor:
University of Arizona
Committee Chair:
Dhaliwal, Dan S.

Full metadata record

DC FieldValue Language
dc.language.isoENen_US
dc.titleThe Effect of Shareholder Taxes on Corporate Payout Choiceen_US
dc.creatorMoser, William J.en_US
dc.contributor.authorMoser, William J.en_US
dc.date.issued2005en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThis study investigates whether the difference in individual shareholder tax rates between dividend income and capital gain (the dividend tax penalty) affects a firm's choice between distributing funds to shareholders through dividends or share repurchases. The results of this study suggest that, in periods in which the dividend tax penalty increases, firms are more likely to distribute funds to shareholders through share repurchases as opposed to dividends. The results also indicate that the relationship between the dividend tax penalty and corporate payout choice is affected by the types of shareholders who own stock in the firm. As managerial share ownership increases and the dividend tax penalty increases firms are more likely to make distributions to shareholders in the form of share repurchases. As aggregate institutional ownership increases and the dividend tax penalty increases, firms are neither more likely to repurchase shares nor more likely to distribute dividends. Division of the institutional ownership category indicates that institutions classified as mutual funds and investment advisors (brokers) have the strongest preference for share repurchases as the dividend tax penalty increases. In contrast, institutions classified as banks, insurance companies and other institutions have the smallest preference for share repurchases as the dividend tax penalty increases. The implication of this study is that individual shareholder taxes affect firms' corporate payout choice.en_US
dc.typetexten_US
dc.typeElectronic Dissertationen_US
dc.subjectShareholder Taxesen_US
dc.subjectDividendsen_US
dc.subjectShare Repurchasesen_US
thesis.degree.namePhDen_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineAccountingen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.chairDhaliwal, Dan S.en_US
dc.contributor.committeememberNewberry, Kayeen_US
dc.contributor.committeememberMills, Lillian F.en_US
dc.identifier.proquest1062en_US
dc.identifier.oclc137353760en_US
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