The Dividend Disconnect
The Dividend Disconnect ArXiv ID: ssrn-2876373 “View on arXiv” Authors: Unknown Abstract Many individual investors, mutual funds and institutions trade as if dividends and capital gains are disconnected attributes, not fully appreciating that divide Keywords: Dividend Policy, Capital Gains, Investor Behavior, Tax Arbitrage, Equity Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 8.5/10 Quadrant: Street Traders Why: The paper focuses on behavioral trading patterns and market implications using extensive real-world datasets and robust empirical analysis, with minimal advanced mathematical formalism. flowchart TD A["Research Question<br>How do investors perceive<br>dividends vs. capital gains?"] --> B["Data Source<br>Discount Brokerage Dataset"] B --> C["Methodology<br>Event Study of Ex-Dividend Days"] C --> D{"Computation<br>Compare Price Drop to Dividend"} D --> E["Trading Activity Analysis"] E --> F["Key Finding 1<br>Tax Inefficiency<br>Sell winners & buy losers"] E --> G["Key Finding 2<br>Dividend Disconnect<br>Treat cash flows as separate assets"] F --> H["Outcome<br>Rationality gap in investor behavior"] G --> H