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- Title
Dividend Tax Cuts and Regulated Firms' Stock Prices.
- Authors
Dickens, Ross N.; Hunsader, Kenneth J.
- Abstract
We examine the impact of the Jobs and Growth Tax Relief Reconciliation Act of 2003 on regulated firms' stock prices. Using a sample consisting of utility and financial firms, we find companies with higher dividend payments have greater abnormal returns than those with lower/no dividend payouts. We find considerable support for the static tax-rate effect and general, but not consistent, support for agency theory's excess cash hypothesis. Result variations across regulated firms' SIC codes provide support that researchers should control for or exclude regulated firms in empirical studies.
- Subjects
TAX cuts; STOCK prices; TAX laws; FINANCIAL institutions; DIVIDENDS; CORPORATE finance
- Publication
Quarterly Journal of Finance & Accounting, 2009, Vol 48, Issue 4, p53
- ISSN
1939-8123
- Publication type
Article