Tax clientele

Categories of investors who have specific preferences for debt or equity because of differences in their personal tax rates.

Tax Clientele

The universe of investors who have a preference for one type of security or another because that type of security minimizes their tax liabilities.

References in periodicals archive ?

Consistent with the tax clientele theory, we find that for the overall sample period, ex-dividend price behavior is systematically related to how capital gains and dividends are taxed.

Another key prediction of the tax clientele model is that sometime before the ex-date, lower dividend yield stocks will end up in the hands of investors for whom dividends are taxed more heavily, while higher yield stocks end up with investors who are taxed at lesser rates.

Do tax law changes influence ex-dividend stock price behavior? Evidence from 1926 to 2005

are the tax clientele for the tax-exempt bonds; in other words, they are

Risk, return, and objective economic substance

Secondary issues examined include the concept of tax clientele, basic differences in the taxation of capital gains and ordinary income, basic differences in the tax consequences of holding mutual funds versus individual stock portfolios, and the characteristics of tax-efficient mutual funds.

Mutual funds' before- and after-tax returns: the case of tax clientele

If a true yield advantage exists, it could be due to a tax clientele effect (e.

Theoretical considerations of the effect of federal income taxes on investment income in property-liability ratemaking

Finesand began his career as a tax lawyer in New York, serving a broad direct investment, corporate finance and tax clientele.

Egan Systems Expands Board of Directors

Because it is conditioned on the tax clientele of dividend-paying stocks changing with the dividend tax cut, we call this case the "dynamic tax-clientele hypothesis.

Dividend tax cut and security prices: examining the effect of the Jobs and Growth Tax Relief Reconciliation Act of 2003

Our main conclusion is that both transactions costs and tax clientele effects are too small to explain the premium, even when synchronous prices are used instead of closing prices.

Prime and score premia: evidence against the tax-clientele hypothesis

As Lakonishok and Vermaelen [15] point out, if corporate cum-ex trading is concentrated in high-yield securities, this will lead to larger price drops for high-yield securities - an outcome very similar to the tax clientele effect.

Trading costs and ex-day behavior: an examination of primes and stocks

Scholes and Wolfson (1992), for example, argue that tax clienteles are "pervasive.

Clientele effects and cross-security market making: evidence from calls of convertible preferred securities

The traditional tax clienteles modeled by Elton and Gruber (1970) fall into this category.

Who trades around the ex-dividend day? Evidence from NYSE audit file data

Thus, as in the Miller analysis, capital structure irrelevance results and tax clienteles form in which investors will hold either equity or debt.

Valuation of callable bonds under progressive personal taxes and interest rate uncertainty