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A Note on the Tax-Induced Clientele Effect and Tax Reform

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  • Ferris, Kenneth R.
  • Reichenstein, William R.

Abstract

Indicates that capital gains tax advantages are sufficiently strong as to produce meaningfully higher before-tax returns on high current yield securities.

Suggested Citation

  • Ferris, Kenneth R. & Reichenstein, William R., 1988. "A Note on the Tax-Induced Clientele Effect and Tax Reform," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(1), pages 131-137, March.
    • Handle: RePEc:ntj:journl:v:41:y:1988:i:1:p:131-37
    DOI: 10.1086/NTJ41788715
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    References listed on IDEAS

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    1. Ang, James S & Peterson, David R, 1985. "Return, Risk, and Yield: Evidence from Ex Ante Data," Journal of Finance, American Finance Association, vol. 40(2), pages 537-548, June.
    2. Litzenberger, Robert H. & Ramaswamy, Krishna, 1979. "The effect of personal taxes and dividends on capital asset prices : Theory and empirical evidence," Journal of Financial Economics, Elsevier, vol. 7(2), pages 163-195, June.
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