Stockholder Tax Rates and Firm Attributes

Auerbach, Alan J.

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Stockholder Tax Rates and Firm Attributes

NBER Working Paper No. w0817

37 Pages Posted: 13 Nov 2007 Last revised: 26 Sep 2022

See all articles by Alan J. Auerbach

Alan J. Auerbach

University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: December 1981

Abstract

This paper develops a rigorous theoretical model to assess when investor clienteles may be empirically identified using ex dividend day data and what firm attributes these clienteles should respond to. It then presents empirical results for the period 1963-1977 suggesting that (1) tax-based investor clienteles do exist, and are reasonably stable over time (2) these clienteles are strongly influenced by the dividend-price ratio, but insignificantly by direct measures of risk and other firm characteristics.

Suggested Citation: Suggested Citation

Auerbach, Alan Jeffrey, Stockholder Tax Rates and Firm Attributes (December 1981). NBER Working Paper No. w0817, Available at SSRN: https://ssrn.com/abstract=351361