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UBC Theses and Dissertations
Dividends, taxes and investor clienteles Downie, David C.
Abstract
This thesis explores two facets of the Miller-Modigliani theorem; dividend irrelevance and value additivity. We explore these concepts in the capital market using a derivative asset recently introduced and a Black-Scholes option pricing model modified for different marginal tax rates. This technology was used to solve for the retention rates for dividend and capital gains implied in these instruments. These implied rates do not support the Miller-Modigliani hypothesis for Canada nor the United States. We find a significant, persistent premia on dividend income consistent with the clientele hypotheses in the literature.
Item Metadata
Title |
Dividends, taxes and investor clienteles
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Creator | |
Publisher |
University of British Columbia
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Date Issued |
1988
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Description |
This thesis explores two facets of the Miller-Modigliani theorem; dividend irrelevance and value additivity. We explore these concepts in the capital market using a derivative asset recently introduced and a Black-Scholes option pricing model modified for different marginal tax rates. This technology was used to solve for the retention rates for dividend and capital gains implied in these instruments. These implied rates do not support the Miller-Modigliani hypothesis for Canada nor the United States. We find a significant, persistent premia on dividend income consistent with the clientele hypotheses in the literature.
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Genre | |
Type | |
Language |
eng
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Date Available |
2010-08-24
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Provider |
Vancouver : University of British Columbia Library
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Rights |
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.
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DOI |
10.14288/1.0097576
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URI | |
Degree | |
Program | |
Affiliation | |
Degree Grantor |
University of British Columbia
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Campus | |
Scholarly Level |
Graduate
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Aggregated Source Repository |
DSpace
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Item Media
Item Citations and Data
Rights
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.