Economics at your fingertips  

A Replication of “Dividend Taxes and Implied Cost of Equity Capital†(Journal of Accounting Research 2005)

Mingjun Zhou ()
Additional contact information
Mingjun Zhou: DePaul University, Chicago, IL, USA

Public Finance Review, 2015, vol. 43, issue 2, 235-255

Abstract: Three major measures of implied cost of equity are sensitive to a summary measure on macroeconomic conditions (the Chicago Fed National Activity Index, or CF3) while changes in the tax rates on investors’ dividend income and capital gains do not appear to be insulated from changes in general business conditions. In the presence of CF3, the measure of dividend tax penalty used in the current empirical research does not seem to be specific to detect the effect of dividend tax capitalization on cost of equity. Future research may need to hold a more nuanced view on the empirical proxy of dividend tax penalty amid major shifts in business cycles.

Keywords: macroeconomic conditions; dividend tax penalty; dividend tax capitalization; implied cost of equity (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().

Page updated 2019-10-18
Handle: RePEc:sae:pubfin:v:43:y:2015:i:2:p:235-255