The Ex-Dividend Day Behaviour of Australian Share Prices Before and After Dividend Imputation

Philip Brown and Alex Clarke
Additional contact information
Philip Brown: Department of Accounting and Finance, University of Western Australia, Nedlands WA 6009.
Alex Clarke: Department of Accounting and Finance, University of Western Australia, Nedlands WA 6009.

Australian Journal of Management, 1993, vol. 18, issue 1, 1-40

Abstract: We document shifts in the ex-dividend day pricing of Australian shares that paid cash dividends between 1973 and 1991, and relate these shifts to three major changes in the taxation of capital gains, dividends and superannuation funds. Despite the changes, which on the whole increasingly favoured dividends over capital gains, shareholders have continued to prefer capital gains. One change was the introduction of dividend imputation in 1987. While the market took some time to adjust to dividend imputation, by 1990 shareholders typically obtained 80% of the benefit of the imputed tax credit.

Keywords: EX-DIVIDEND RETURN; DROP-OFF RATIO; DIVIDEND IMPUTATION (search for similar items in EconPapers)
Date: 1993
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/031289629301800101 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:18:y:1993:i:1:p:1-40

DOI: 10.1177/031289629301800101

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().