Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts

Sell()les and Wolfson (1992) predict that following the 1986 Tax Reform Act, the tax cost of the corporate form relative 10 that of the partnership PM, (the incremental tax cost) increased significantly. This study hypothesizes that since dividends represent a tax disadvantaged form of income relati...

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Main Author:	Perpustakaan UGM, i-lib
Format:	Article NonPeerReviewed
Published:	[Yogyakarta] : Universitas Gadjah Mada 2003
Subjects:	Jurnal i-lib UGM
Online Access:	https://repository.ugm.ac.id/25501/ http://i-lib.ugm.ac.id/jurnal/download.php?dataId=8496
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Institution:	Universitas Gadjah Mada

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spelling	id-ugm-repo.255012014-06-18T00:31:02Z https://repository.ugm.ac.id/25501/ Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts Perpustakaan UGM, i-lib Jurnal i-lib UGM Sell()les and Wolfson (1992) predict that following the 1986 Tax Reform Act, the tax cost of the corporate form relative 10 that of the partnership PM, (the incremental tax cost) increased significantly. This study hypothesizes that since dividends represent a tax disadvantaged form of income relative to capital gains, then in response to an increase in incremental tax costs, corporations would decrease their dividend payout ratios. The response is expected to he stronger for corporations owned by shareholders with long investment horizons because the tax cost savedfmin decreasing dividend payout ratios is an increasing function of shareholders' investment horizon. The empirical tests support the hypothesis and. show a negative relationship between the change in incremental tax costs and the change in dividend payout ratios â�¢ for films with long average investment horizons. Keywords: dividend policy: organizational Wm: tax cost: tax reform act [Yogyakarta] : Universitas Gadjah Mada 2003 Article NonPeerReviewed Perpustakaan UGM, i-lib (2003) Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts. Jurnal i-lib UGM. http://i-lib.ugm.ac.id/jurnal/download.php?dataId=8496
institution	Universitas Gadjah Mada
building	UGM Library
country	Indonesia
collection	Repository Civitas UGM
topic	Jurnal i-lib UGM
spellingShingle	Jurnal i-lib UGM Perpustakaan UGM, i-lib Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts
description	Sell()les and Wolfson (1992) predict that following the 1986 Tax Reform Act, the tax cost of the corporate form relative 10 that of the partnership PM, (the incremental tax cost) increased significantly. This study hypothesizes that since dividends represent a tax disadvantaged form of income relative to capital gains, then in response to an increase in incremental tax costs, corporations would decrease their dividend payout ratios. The response is expected to he stronger for corporations owned by shareholders with long investment horizons because the tax cost savedfmin decreasing dividend payout ratios is an increasing function of shareholders' investment horizon. The empirical tests support the hypothesis and. show a negative relationship between the change in incremental tax costs and the change in dividend payout ratios â�¢ for films with long average investment horizons. Keywords: dividend policy: organizational Wm: tax cost: tax reform act
format	Article NonPeerReviewed
author	Perpustakaan UGM, i-lib
author_facet	Perpustakaan UGM, i-lib
author_sort	Perpustakaan UGM, i-lib
title	Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts
title_short	Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts
title_full	Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts
title_fullStr	Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts
title_full_unstemmed	Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts
title_sort	tax costs and corporation dividend policy: evidence from the 1986 u.s. tax reform acts
publisher	[Yogyakarta] : Universitas Gadjah Mada
publishDate	2003
url	https://repository.ugm.ac.id/25501/ http://i-lib.ugm.ac.id/jurnal/download.php?dataId=8496
_version_	1681218597227069440

Tax Costs And Corporation Dividend Policy: Evidence from the 1986 U.S. Tax reform acts

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