We analyze cumulative abnormal returns (CARs) around key events leading up to the passage of JGTRRA to determine whether a reduction in the individual tax rate on dividend income affects stock prices, and if so, whether that effect differs for different groups of firms. In general, we find that...

The general consensus regarding the Jobs and Growth Tax Relief Reconciliation Act of 2003, which reduced the maximum tax rate on dividends for individual investors, is that aggregate dividend payments increased after passage of the act. Research also suggests that changes in dividend payments...

We investigate the relationship between relationship between U.S. Treasury bill yields and the dividend yield of the S&P 500 in the period before and after the passage of the Jobs Growth Tax Relief Reconciliation Act (JGTRRA) in 2003. The results suggest that there is an upward pressure on the...