Abstract
With an increasing focus by fund managers on post-tax return and tax-efficiency, including the benefits arising from franking credits, this paper investigates the extent to which the value of franking credits is reflected in the market price of stocks. A particular emphasis is placed on evidence from recent years to determine whether there has been any change in behaviour from that previously exhibited or whether the franking credit is fully valued by the market.
| Original language | English |
|---|---|
| Pages (from-to) | 29-34 |
| Number of pages | 6 |
| Journal | JASSA |
| Issue number | 2 |
| Publication status | Published - 2010 |
Keywords
- dividends
- franking credits
- cum-dividend market
- valuation
- IMPUTATION TAX-SYSTEM