Taxes and Dividend Policy
This paper examines the effect of differential personal taxation on corporate dividend policy. The temporal pattern of corporate dividend payout and dynamic dividend behavior are examined over a period with significant changes in the tax code. The paper finds that there are structural shifts in the...
Saved in:
| Main Author: | |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
1996
|
| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/856 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Singapore Management University |
| Language: | English |
| Summary: | This paper examines the effect of differential personal taxation on corporate dividend policy. The temporal pattern of corporate dividend payout and dynamic dividend behavior are examined over a period with significant changes in the tax code. The paper finds that there are structural shifts in the aggregate dividend payout and these shifts often coincide with tax law changes. The empirical results provide a modest support for the hypothesis that the elimination of the preferential capital gains tax treatment in 1986 has a positive impact on the aggregate corporate dividend payout ratio. |
|---|