Ex-day behavior with dividend preference and limitations to short-term arbitrage: the case of Swedish lottery bonds

Article Abstract:

An analysis of the Swedish lottery market was conducted to examine ex-day effects in a condition where cash distributions are tax-advantaged relative to capital gains. The prices of lottery bonds were studied from data derived from three tax regimes. Results demonstrate that investors respond to tax incentives in their trading attitude which is reflected by lottery bond prices. The trading behavior that results from the taxation of bonds is in reverse of the trend in dividend distributions for equities.

Tax Law, Public Finance Activities, Amusement and recreation, not elsewhere classified, Lotteries, Other Gambling Industries, Sweden, Securities, Bonds, Bonds (Securities), Lottery industry

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The personal-tax advantages of equity

Article Abstract:

The cost of capital is reduced by approximately 0.8 percent, when a firm pays its cash flows to equity through share repurchases. In order to evaluate the tradeoffs between, the cost of financial distress, the personal-tax advantages of equity, and the corporate-tax advantage to debt, distribution of pre tax cash flows in Fama & French is used.

Forecasts, trends, outlooks, Taxes, Forecasts and trends, Market trend/market analysis

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Corporate earnings and the equity premium

Article Abstract:

The implications of the sensitivity of corporate cash flows and earnings on the asset pricing are analyzed. A solution for valuing stocks is presented wherein equity premium is comprised of thee effects of consumption risk, event risk and corporate risk.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Capital funds & cash flow, Asset Valuation & Distribution, Valuation, Asset valuation

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