悉尼大学资本市场与公司财务课件Lecture10.ppt

Information asymmetry (cont) Companies announcing the largest positive dividend changes (Portfolio 1) experienced the largest abnormal returns Companies announcing the smallest dividend changes, including negative changes (Portfolio 5) experienced negative abnormal returns 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Size of earnings and dividend change (%) Unexpected return in announcement month (%) -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 1 2 3 4 5 Portfolios formed on size of dividend change Abnormal return Change in dividend Change in earnings FIGURE 11.6 Personal and corporate taxes Do personal and corporate taxes impact on dividend policy? In Australia capital gains may be taxed differently from dividends, with the result that dividend policy can impact upon shareholder wealth Example: An investor with a marginal tax rate of 47% earns: 37 cents for every dollar of free cash flow generated by a company if it retained earnings 53 cents for every dollar generated if the company paid out its earnings as dividends Personal and corporate taxes (cont) Example 11.3 A company generates a profit before tax of $1 per share in the year ended 30 June 2008. A shareholder has a marginal tax rate of 45% and the corporate tax rate is 30%. Calculate the shareholder’s net profit if the company: retained the profit and consequently the investor made a capital gain or paid out the cash flow as a fully franked dividend Example 11.3 (cont) A company generates a profit before tax of $1 per share in the year ended 30 June 2008. A shareholder has a marginal tax rate of 45% and the corporate tax rate is 30%. Calculate the shareholder’s net profit if the company: retained the profit and consequently the investor made a capital gain or paid out the cash flow as a fully franked dividend Personal and corporate taxes (cont) This example illustrates that an investor in a tax bracket of 45% benefits from a dividend policy that pays higher dividends However, the conclusion reached dep