An empirical analysis of the market value of imputation tax credits in the New Zealand share market
dc.contributor.author | Day, Carol L. | |
dc.contributor.author | Ward, Bert D. | |
dc.date.accessioned | 2009-03-19T03:26:22Z | |
dc.date.issued | 1997-04 | |
dc.description.abstract | This study argues that the value of imputation tax credits should be taken into account when firms are making decisions on investment, capital structure and dividend policy. The research examines ex-dividend day share price behaviour to determine empirically the estimated value of imputation tax credits in the New Zealand sharemarket, and tests the ‘tax-effect hypothesis’ that share price behaviour on ex-dividend day reflects marginal investors’ after tax value valuation of income received as dividends as opposed to capital gains. Hence a dividend drop off ratio model is used to determine whether or not investors have recognised and are receiving the value of imputation tax credits. It was estimated that shareholders do, on average, value tax credits at just under 60% of their face value. | en |
dc.identifier.issn | 1173-0854 | en |
dc.identifier.uri | https://hdl.handle.net/10182/920 | |
dc.language.iso | en | |
dc.publisher | Lincoln University. Commerce Division. | |
dc.relation | The original publication is available from - Lincoln University. Commerce Division. | en |
dc.subject | economic model | en |
dc.subject | decision making | en |
dc.subject | economic analysis | en |
dc.subject | financial analysis | en |
dc.subject | finance theory | en |
dc.subject | stock valuation | en |
dc.subject | dividend imputation | en |
dc.subject | securities | en |
dc.subject.marsden | Marsden::340203 Finance economics | |
dc.subject.marsden | Marsden::340401 Economic models and forecasting | |
dc.subject.marsden | Marsden::340103 Mathematical economics | |
dc.title | An empirical analysis of the market value of imputation tax credits in the New Zealand share market | en |
dc.type | Discussion Paper | |
lu.contributor.unit | Lincoln University | |
lu.contributor.unit | Faculty of Agribusiness and Commerce | |
lu.contributor.unit | Department of Financial and Business Systems | |
pubs.publication-status | Published | en |
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