Taxes, Uncertainty and Optimal Dividend Policy

Taxes, Uncertainty and Optimal Dividend Policy

For a number of reasons, a firm's reported earnings may be viewed skeptically by securities markets in the sense that a divergence is thought to exist between reported & "true" earnings. If the size of the dividend payout is assumed to provide information that helps investors reso...

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Veröffentlicht in:Financial management 1976-04, Vol.5 (1), p.46-52
Hauptverfasser: Arditti, Fred D., Levy, Haim, Sarnat, Marshall
Format: Artikel
Sprache:eng
Schlagworte:
Business structures
Dividends
Financial investments
Income taxes
Investors
Optimal
Optimal taxation
Personal income taxes
Ratios
Shareholders
Tax brackets
Tax policy
Uncertainty
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Beschreibung
Zusammenfassung:For a number of reasons, a firm's reported earnings may be viewed skeptically by securities markets in the sense that a divergence is thought to exist between reported & "true" earnings. If the size of the dividend payout is assumed to provide information that helps investors resolve this uncertainty, then given a differential in personal-capital gains tax rates, a unique, optimal dividend policy may exist for the firm.
ISSN:0046-3892
1755-053X
DOI:10.2307/3665327