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dc.contributor.authorCanina, Linda
dc.contributor.authorTuckman, Bruce
dc.date.accessioned2020-09-12T21:09:29Z
dc.date.available2020-09-12T21:09:29Z
dc.date.issued1996-01-01
dc.identifier.other11953117
dc.identifier.urihttps://hdl.handle.net/1813/72184
dc.description.abstractPrimes and scores split the cash flows of a share of stock into dividend and capital gain components, respectively. An analysis of transaction prices reveals that the sum of prime and score prices exceeds the price of their underlying stock. This paper develops a tax-clientele explanation of this premium over the stock price. It tests jointly the clientele effect and an after-tax version of the Black-Scholes option pricing formula. The data reject this joint hypothesis in a manner that suggests the tax-clientele model is not supported.
dc.language.isoen_US
dc.rightsRequired Publisher Statement: © Financial Management Association International. Final version published as: Canina, L. & Tuckman, B. (1996). Prime and score premia: Evidence against the tax-clientele hypothesis. Financial Management, 25(4), 78-94. Reprinted with permission. All rights reserved.
dc.subjectinvestors
dc.subjectstock prices
dc.subjectdividends
dc.subjectmarket prices
dc.subjectincome taxes
dc.subjectcorporations
dc.subjectstock shares
dc.subjectarbitrage
dc.subjectcapital gains
dc.titlePrime and Score Premia: Evidence against the Tax-Clientele Hypothesis
dc.typearticle
dc.relation.doihttps://doi.org/10.2307/3665591
dc.description.legacydownloadsCanina32_Prime.pdf: 51 downloads, before Aug. 1, 2020.
local.authorAffiliationCanina, Linda: lc29@cornell.edu Cornell University School of Hotel Administration
local.authorAffiliationTuckman, Bruce: Salomon Brothers Inc.


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