L'Impact de la Distribution de Dividendes: Une Étude de Cas (The Impact of Dividend Distribution: A Case Study)

Conservatoire National des Arts et Métiers Chair of Banking Research Paper No. 6

13 Pages Posted: 9 Nov 2012

See all articles by Didier Maillard

Didier Maillard

Conservatoire National des Arts et Métiers (CNAM); Amundi Asset Management

Date Written: May 31, 2003

Abstract

This paper assesses the impact of dividend distribution on the share price of the biggest quoted French firms. In the absence of market imperfections and taxes, dividend distribution should result in an equivalent drop in the share price (along Modiglini-Miller)

In fact, a case study on 2002 shows a drop amounting to 80 percent of the dividend on the day of distribution.

Arbitraging this difference could be imagined, especially for investors able to collect a tax credit equivalent to the corporate tax rate. But it seems diffiuclt to implement due to transaction costs and admissibility by the tax rules.

Note: Downloadable document is in French.

Keywords: Corporate finance, dividend distribution, tax

JEL Classification: G12, G35

Suggested Citation

Maillard, Didier, L'Impact de la Distribution de Dividendes: Une Étude de Cas (The Impact of Dividend Distribution: A Case Study) (May 31, 2003). Conservatoire National des Arts et Métiers Chair of Banking Research Paper No. 6, Available at SSRN: https://ssrn.com/abstract=2173365 or http://dx.doi.org/10.2139/ssrn.2173365

Didier Maillard (Contact Author)

Conservatoire National des Arts et Métiers (CNAM) ( email )

292, rue Saint-Martin
Paris cedex 03, 75141
France

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015
France

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