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Hedge fund managers are compensated by incentive fees and the investors’ money flows into hedge funds are based on their prior performance. These provide managers with both explicit and implicit incentives to improve performance as the year draws to a close. Consistent with this, we document that the average returns during December are two-and-a-half times(More)
This paper analyzes the effects of dividend taxation on corporate behavior using the large tax cut on individual dividend income enacted in 2003. We document a 20 percent increase in dividend payments by nonfinancial, nonutility publicly traded corporations following the tax cut. An unusually large number of firms initiated or increased regular dividend(More)
This paper analyzes the effects of dividend taxation on corporate behavior using the large tax cut on individual dividend income enacted in 2003. We document a 20 percent increase in dividend payments by nonfinancial, nonutility publicly traded corporations following the tax cut. An unusually large number of firms initiated or increased regular dividend(More)
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