Taxes and Ex–Day Returns: Evidence From Germany and the U.K
I analyze the tax systems and tax reforms in Germany and the U.K. and test the hypothesis that ex–day returns are related to each country’s tax differential between dividends and capital gains. The results indicate that in the U.K., where this tax differential is high and short–term trading is regulated, ex–day returns are higher, and the market microstructure and short–term trading impacts are weak. In contrast, in Germany, the tax impact is mitigated by short–term trading and market microstructure effects. The results suggest that despite their dividend tax similarities, the institutional differences between the two countries lead to different determinants of ex–day returns.
Volume (Year): 61 (2008)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: 529 14th Street NW Suite 750, Washington DC 20045|
Web page: https://www.ntanet.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:61:y:2008:i:4:p:721-42. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (A. Sinan Unur)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.