Super Finance Glossary
Over 10,000 financial glossary terms...
Tax Differential View (of Dividend Policy)
Tax Differential View (of Dividend Policy)
Definition: The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.
Definition: The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.