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Record W1829145074 · doi:10.19030/jber.v5i9.2586

The Short-Term Reaction To The Dividend Tax Reduction

2011· article· en· W1829145074 on OpenAlexaboutno aff
Richard H. Fosberg

Bibliographic record

VenueJournal of Business & Economics Research (JBER) · 2011
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Taxation and Avoidance
Canadian institutionsnot available
Fundersnot available
KeywordsDividendSpan (engineering)EconomicsQuarter (Canadian coin)Style (visual arts)Monetary economicsFinanceEngineering

Abstract

fetched live from OpenAlex

<p class="MsoNormal" style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">With the passage of the Jobs and Growth Reconciliation Act of 2003, the maximum tax rate on dividend income was lowered from 38.6% to 15%.<span style="mso-spacerun: yes;">  </span>This eliminated the traditional tax disadvantage that dividend income had relative to capital gains income.<span style="mso-spacerun: yes;">  </span>Theoretically, this should have led a significant number of firms to increase their dividend payments.<span style="mso-spacerun: yes;">  </span>In an empirical analysis of firm dividend payments after the dividend tax reduction took effect, it was found that there was a statistically significant increase in the number of firms raising their dividends.<span style="mso-spacerun: yes;">  </span>For example, in the third quarter of 2003, 4.6% more firms increased their dividends than did so in the third quarter in 2002.<span style="mso-spacerun: yes;">  </span>Similarly, 4.9% more firms increased their dividend payments in the fourth quarter of 2003 than did so in the fourth quarter of 2002.<span style="mso-spacerun: yes;">  </span>A logit regression analysis of dividend changes showed that most of the change in the number of dividend increases was caused by the dividend tax reduction and not other factors such as earnings, earnings stability, investment opportunities or firm size.<span style="mso-spacerun: yes;">  </span>The logit regression analysis also indicated that the dividend tax reduction increased by 3.7% (4.2%) the probability that the average sample firm would increase its dividend payment in the third (fourth) quarter of 2003.<span style="mso-spacerun: yes;">  </span>It was also found that the greater a firm's blockholder share ownership the less likely the firm was to increase its dividend payment following the dividend tax reduction.<span style="mso-spacerun: yes;">  </span>CEO and other officer and director share ownership were found to be unrelated to the probability that a firm would increase its dividend payment.</span></span></p>

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.004
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.598
Threshold uncertainty score0.775

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0040.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.001
Science and technology studies0.0010.000
Scholarly communication0.0010.002
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.146
GPT teacher head0.306
Teacher spread0.159 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designNot applicable
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2011
Admission routes1
Has abstractyes

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