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Should Taxable Investors Shun Dividends?

Israel, Ronen - 2019

documented in the literature, evidence on the benefits of avoiding high-dividend-paying stocks is less conclusive. We evaluate … the tax benefit of dividend avoidance for quantitative multi-style strategies. We find that dividend avoidance generally … particularly pronounced for strategies with naturally higher dividend yields, such as strategies with a large exposure to the value …

Persistent link: https://www.econbiz.de/10012868621

Income Taxation, Wealth Effects, and Uncertainty : Portfolio Adjustments with Isoelastic Utility and Discrete Probability (V.2)

Sims, Theodore S. - 2014

The expected utility formulation of the problem of a risk-averse agent's allocating a portfolio between a safe and a risky asset is widely taken as standing for the proposition that if α* ε (0, 1) is the optimal allocation to the risky asset in the absence of tax, α*/(1-t) is the optimal...

Persistent link: https://www.econbiz.de/10013049484

How do entrepreneurial portfolios respond to income taxation?

Fossen, Frank M.; Rees, Ray; Rostam-Afschar, Davud; … - 2017

We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in...

Persistent link: https://www.econbiz.de/10011671669