Do Tax Law Changes Influence Ex-Dividend Stock Price Behavior? Evidence from 1926 to 2005

We test the Elton and Gruber model of ex-dividend stock pricing over a period spanning all US tax law changes since 1926. Our results indicate that price drop ratios (ΔP/D) and ex-day returns are related to dividend and capital gains tax rates in the theorized manner. Consistent with tax clienteles, we also find that ex-day price movements of higher dividend yield stocks are driven more by corporate tax rates, while lower yield stocks are more influenced by personal rates. Finally, we demonstrate that the positive relationship between ΔP/D and the dividend yield becomes stronger as the tax differential | t_d− t_cg | widens.     

The Ex‐Day Price Behavior of REITs: Taxes or Ticks?

Taxes and microstructure constraints are often cited as possible explanations for why stock prices drop by less than the dividend on their ex‐dates. Using a sample of real estate investment trusts, which have no significant correlation between dividend size and yield, we find that close‐to‐open ex‐dividend price drops are related to dividend size as suggested by the microstructure models, but close‐to‐close price drops are related to dividend yield as predicted by the tax theory. These results imply that overnight price drops are primarily determined by microstructure, but that trading during the ex‐day causes prices to adjust to reflect individual tax preferences.     

Tackling child poverty in South Africa: Implications of ubuntu for the system of social grants

In South Africa both liberal and more communitarian and relational discourses of citizenship can be seen – the latter in the form of the southern African idea of ubuntu. Policy for assisting children, however, is dominated by the framework of liberal citizenship, most clearly through the Bill of Rights and in particular the Child Support Grant. Using analyses from a purpose-built microsimulation model we show how a neglect of children's broader relationships in the current liberal citizenship inspired policy context limits the effectiveness of the child poverty strategy. The empirical analyses demonstrate how a greater recognition by policymakers of the relational principles of ubuntu could be expected to have more effect on reducing child poverty.     

A Cognitive Three-Process Model of Computer-Mediated Group Interaction

Current theories imply text-based computer networks are socially barren, but computer-mediated interaction (CMI) research contradicts this. A cognitive perspective suggests individuals in groups construct cognitions regarding the task (purpose), other people (relationships), and the group (identity), and these drive the interaction. Three core psychological process follow: resolving task information, relating to others and representing the group. This gives three types of influence: informational, personal and normative, and three group purposes: task resolution, interpersonal relationships and group unity. Group unity occurs when group members represent a common identity. The traditional communication threads of message content and sender context therefore require a third - behavioural position. Many-to-many exchange of member positions allows the group position to be transmitted to the group. A picture emerges of three parallel processes overlapping in behaviour, although CMI allows them to be isolated and investigated. This model extends most theories of computer-mediated group interaction. It implies there is no best type of group interaction support, because there is no best process. The groupware challenge is to offer the flexibility to support all three processes in combination.     

Price control techniques in poor countries: the Tanzanian case

This paper looks at the techniques used by the Tanzanian Price Commission to fix maximum prices for locally manufactured goods. The effects of these techniques on the duel objectives of price control – economic efficiency and political stability – are analysed. After an examination of possible alternative techniques it is concluded that, despite its theoretical weaknesses, the present system of cost-plus pricing is probably the most appropriate for most Tanzanian industries, especially in view of the country's severe manpower constraint. However, greater incentives to improve productive efficiency could be incorporated into the present system.