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Links to Research Summary Pages
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Our approach:
Research shows that franking credits are not priced into the value of shares in Australia. This is why we recommend holding a slightly greater higher allocation of Australian shares compared to international shares and property within portfolios.
The research:
The value of dividend imputation tax credits in Australia
Journal of Financial Economics
Damien Cannavan, Frank Finn and Stephen Gray
July 2004, Vol. 73, No. 1: 167-197
What the paper says: Franking (or imputation) credits are not priced into the value of shares.
In the author's own words: "the implied value of tax credits has been insignificantly different from zero".
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Scott Francis' articles in the Eureka Report
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