Quarterly Journal of Business and Economics articles from January 1996

Quarterly Journal of Business and Economics archives from January 1996

Dividends, taxes, and returns: empirical evidence.
January 1, 1996... INTRODUCTION U.S. tax law generally has treated capital gains more favorably than dividends. Under this differential taxation, taxpayers should prefer to accrue capital gains rather than dividends and hence demand a tax premium on relatively...

Assessing the relationship between income smoothing and the value of the firm.
January 1, 1996... INTRODUCTION Earnings management, more aptly called disclosure management by Schipper (1989), has been the subject of much accounting research over the past three decades.(1) A significant portion of this work has examined income smoothing, a...

The detection of nonstationarity in the market model.
January 1, 1996... INTRODUCTION Financial theorists and practitioners for many years have used the well-known market model for the development and use of financial theories. As a return-generating equation, the market model has found extensive application in...

Leveraged buyouts: implications for U.S. Treasury tax receipts.
January 1, 1996... INTRODUCTION Popular sentiment in the U.S. is that the taxpayer heavily subsidizes leveraged buyouts (LBOs) (Newport, 1989; Saunders, 1988) because massive debt creates new interest tax shields that reduce tax receipts to the U.S. Treasury....

Is underpricing a signal of quality in 'second' initial public offerings?
January 1, 1996... INTRODUCTION Allen and Faulhaber (1989), Welch (1989), and Grinblatt and Hwang (1989) model IPO underpricing as a signal of firm quality from better informed owners to less informed investors. If there were no information asymmetries between...

The January effect in preferred stock investments.
January 1, 1996... INTRODUCTION A January anomaly regularly has been detected in common stock returns, but it has not been investigated in preferred stock returns. Recent studies have tried to test whether or not the January effect is market dependent or...

Market risk premiums and the macroeconomy: Canadian evidence of stock market predictability.
January 1, 1996... INTRODUCTION There has been much interest in the academic community regarding stock market predictability. Two broad streams of research have evolved. First, there is the stream that shows stock returns are predictable from previous returns....