scholarly journals Dividend Taxes and Firm Valuation: New Evidence

2006 ◽  
Author(s):  
Alan Auerbach ◽  
Kevin Hassett
Keyword(s):  
Firm Valuation ◽  
New Evidence ◽  
Dividend Taxes

scholarly journals Dividend Taxes and Firm Valuation: New Evidence

2006 ◽  
Vol 96 (2) ◽  
pp. 119-123 ◽  
Author(s):  
Alan J Auerbach ◽  
Kevin A Hassett
Keyword(s):  
Firm Valuation ◽  
New Evidence ◽  
Dividend Taxes

Dividend Taxes and Firm Valuation: A Re-Examination

2001 ◽  
Author(s):  
Michelle Hanlon ◽  
James N. Myers ◽  
Terry J. Shevlin
Keyword(s):  
Firm Valuation ◽  
Dividend Taxes

Capital Gains and Dividend Taxes in Firm Valuation: Evidence of Triple Taxation

2000 ◽  
Vol 75 (4) ◽  
pp. 405-427 ◽  
Author(s):  
Julie H. Collins ◽  
Deen Kemsley
Keyword(s):  
Empirical Analysis ◽  
Firm Valuation ◽  
Capital Gains ◽  
Residual Income ◽  
Equity Valuation ◽  
Valuation Model ◽  
Capital Gains Taxes ◽  
Retained Earnings ◽  
Dividend Taxes

Although firms account for entity-level taxes, they do not account for shareholder-level capital gains and dividend taxes. To account for these proprietary-level taxes, we add them to a residual-income equity valuation model. Empirical analysis supports the model's predictions. First, both capital gains and dividend taxes reduce investors' implicit valuation of the reinvested portion of earnings. Second, dividend taxes reduce the valuation of the portion of earnings distributed as dividends, but capital gains taxes do not. Third, dividend taxes reduce the valuation of retained earnings equity, but again, capital gains taxes do not. These findings suggest that investors implicitly extend entity-level accounting to the proprietary level when they value the firm. The findings also suggest that when fully accounting for the effects of implicit dividend taxes, reinvested earnings appear to be subject to three levels of taxation—corporate, dividend, and capital gains taxes. Paying earnings out as dividends eliminates the capital gains layer of tax and may provide a net wealth benefit for shareholders, rather than a tax penalty as commonly assumed.

Dividend Taxation in Firm Valuation: New Evidence

CFA Digest ◽  
2000 ◽  
Vol 30 (3) ◽  
pp. 98-99
Author(s):  
Frank T. Magiera
Keyword(s):  
Firm Valuation ◽  
Dividend Taxation ◽  
New Evidence

Dividend Taxation in Firm Valuation: New Evidence

1999 ◽  
Vol 37 (2) ◽  
pp. 275 ◽  
Author(s):  
Trevor S. Harris ◽  
Deen Kemsley
Keyword(s):  
Firm Valuation ◽  
Dividend Taxation ◽  
New Evidence

Environmental Responsibility, External Assurance, and Firm Valuation

2017 ◽  
Vol 37 (4) ◽  
pp. 207-233 ◽  
Author(s):  
Divesh S. Sharma ◽  
Vineeta D. Sharma ◽  
Barri A. Litt
Keyword(s):  
Social Responsibility ◽  
Financial Statements ◽  
Audit Fees ◽  
Firm Valuation ◽  
Environmental Responsibility ◽  
Tobin's Q ◽  
Environmental Initiatives ◽  
External Auditors ◽  
Different Types ◽  
New Evidence

SUMMARY We provide new evidence in examining whether external auditors price environmental responsibility initiatives when performing the audit of financial statements. We also examine how investors value the firm when environmental initiatives occur in conjunction with higher audit fees. Results show environmental initiatives are positively associated with audit fees, but the extent of this association varies across the five different types of environmental initiatives we consider. We further find that auditors appear to price environmental initiatives due to their risk rather than additional audit effort. While environmental initiatives may be costly from an audit standpoint, investors value (Tobin's Q) firms more highly when environmental initiatives occur in conjunction with higher audit fees. Collectively, our findings imply that auditors price environmental initiatives into the audit and investors value firms more highly when auditors consider this social responsibility.

Dividend taxes and firm valuation:

2003 ◽  
Vol 35 (2) ◽  
pp. 119-153 ◽  
Author(s):  
Michelle Hanlon ◽  
James N. Myers ◽  
Terry Shevlin
Keyword(s):  
Firm Valuation ◽  
Dividend Taxes

Systematic effects in observed parallaxes

1978 ◽  
Vol 48 ◽  
pp. 31-35
Author(s):  
R. B. Hanson
Keyword(s):  
Error Estimates ◽  
Zero Point ◽  
Absolute Zero ◽  
Apparent Magnitude ◽  
Coherent System ◽  
Preliminary Results ◽  
General Catalogue ◽  
Systematic Effects ◽  
New Evidence ◽  
Right Ascension

Several outstanding problems affecting the existing parallaxes should be resolved to form a coherent system for the new General Catalogue proposed by van Altena, as well as to improve luminosity calibrations and other parallax applications. Lutz has reviewed several of these problems, such as: (A) systematic differences between observatories, (B) external error estimates, (C) the absolute zero point, and (D) systematic observational effects (in right ascension, declination, apparent magnitude, etc.). Here we explore the use of cluster and spectroscopic parallaxes, and the distributions of observed parallaxes, to bring new evidence to bear on these classic problems. Several preliminary results have been obtained.

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