Faculty of Economics and Business Administration Publications Database

An Empirical Examination of the Effect of Dividend Taxation on Asset Pricing and Returns in Germany

Murphy, Austin J.
Volume: 10
Number: 1
Pages: 35 - 52
Month: Spring-Summer
ISSN-Print: 1044-0283
Link External Source: Online Version
Year: 1999
Abstract: This research finds evidence that required pretax returns on German stocks are unchanged as a result of the enactment of a law in Germany providing shareholders with tax credits for dividends received. In the most recent time interval, higher risk-adjusted pretax returns are discovered on high-yielding German stocks. These findings imply that the effect of the tax credits has been more than offset by other factors.