Abolishing franking credit refunds: evidence from an event study

Thesis

Competing asset pricing models offer different predictions on whether dividend taxes affect share prices. This thesis conducts an event study of the announcement of a reform to Australia’s dividend imputation system. The reform would have abolished refunds to taxpayers with excess franking credits, which would have had the effect of raising taxes on dividends paid to domestic shareholders. The results provide no evidence that the announcement reduced share prices.

Authors: McCarthy, M

• Type of award: MPhil
• Level of award: Masters
• Awarding institution: University of Oxford
• Language: English
• Keywords: Dividend taxation; Franking credits; Company tax; Corporation tax; Dividend imputation; Event study
• Subjects: Economics