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The equity market impact of SA's transition from STC to dividend withholding tax : an event study
Mini Dissertation (MBA)--University of Pretoria, 2017.
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| Other Authors: | |
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2017
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| _version_ | 1867613542262243328 |
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| access_status_str | Open Access |
| author2 | Ward, Mike |
| author_browse | Ward, Mike |
| author_facet | Ward, Mike |
| collection | Thesis |
| dc_rights_str_mv | © 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. |
| description | Mini Dissertation (MBA)--University of Pretoria, 2017. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/59800 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:48.227Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/59800 The equity market impact of SA's transition from STC to dividend withholding tax : an event study Ward, Mike ichelp@gibs.co.za Visser, Ernie UCTD Mini Dissertation (MBA)--University of Pretoria, 2017. For over 50 years academics have grappled with trying to understand and quantify the influence of dividend taxes on the behaviour of equity markets. As a shareholder, one should rationally be indifferent to receiving returns in the form of dividend payouts or value growth. Markets are, however, not perfectly efficient and investors are not completely rational. The purpose of this research project was to analyse and quantify the impact on the behaviour of South Africa's equity market, if any, resulting from the decision to replace the Secondary Tax on Companies system with the Dividend Withholding Tax regime at a higher effective tax rate. An events study methodology that was quantitative and causal in nature was used to test five hypotheses for three separate events that collaboratively indicate whether there was an impact from this change in dividend regulation or not. The results align with empirical evidence from international literature and indicate that there was indeed a significant, negative equity market impact resulting from the transition. The negative reaction is primarily attributable to the hike in the dividend tax rate rather than the reduction in regulatory complexity and was shown to be more significant for higher dividend yield firms. zk2017 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2017-04-07T13:05:42Z 2017-04-07T13:05:42Z 2017-03-30 2017 Mini Dissertation Visser, E 2017, The equity market impact of SA's transition from STC to dividend withholding tax : an event study, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/59800> http://hdl.handle.net/2263/59800 en © 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD The equity market impact of SA's transition from STC to dividend withholding tax : an event study |
| title | The equity market impact of SA's transition from STC to dividend withholding tax : an event study |
| title_full | The equity market impact of SA's transition from STC to dividend withholding tax : an event study |
| title_fullStr | The equity market impact of SA's transition from STC to dividend withholding tax : an event study |
| title_full_unstemmed | The equity market impact of SA's transition from STC to dividend withholding tax : an event study |
| title_short | The equity market impact of SA's transition from STC to dividend withholding tax : an event study |
| title_sort | equity market impact of sa s transition from stc to dividend withholding tax an event study |
| topic | UCTD |
| url | http://hdl.handle.net/2263/59800 |