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The impact of dividend imputation on share prices, the cost of capital and corporate behaviour

Andrew Ainsworth et al.

JASSA: The Finsia Journal of Applied Finance2016article
ABDC B
Weight
0.50

Abstract

Debate continues about how dividend imputation affects equity markets. Central issues are whether franking credits are 'priced' by the market, and how imputation influences the behaviours of market participants. We argue that the presence of imputation affects investor and corporate behaviour, and that it would be dangerous to assume imputation has no effect on prices because they are entirely determined in global markets. Focusing on the impact on corporate behaviour, especially with regard to dividend payout and capital structure policies, we conclude that imputation matters and it has probably been beneficial.

4 citations

Cite this paper

@article{andrew2016,
  title        = {{The impact of dividend imputation on share prices, the cost of capital and corporate behaviour}},
  author       = {Andrew Ainsworth et al.},
  journal      = {JASSA: The Finsia Journal of Applied Finance},
  year         = {2016},
}

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The impact of dividend imputation on share prices, the cost of capital and corporate behaviour

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.38 × 0.4 = 0.15
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.