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- Publisher Website: 10.1016/j.jpubeco.2015.05.001
- Scopus: eid_2-s2.0-84938118528
- WOS: WOS:000404311700007
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Article: Do dividend taxes affect corporate investment?
Title | Do dividend taxes affect corporate investment? |
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Authors | |
Keywords | Dividend taxation Investment Private Firms |
Issue Date | 2017 |
Citation | Journal of Public Economics, 2017, v. 151, p. 74-83 How to Cite? |
Abstract | We test whether dividend taxes affect corporate investments. We exploit Sweden's 2006 dividend tax cut of 10 percentage points for closely held corporations and 5 percentage points for widely held corporations. Using rich administrative panel data and triple-difference estimators, we find that this dividend tax cut does not affect aggregate investment but that it affects the allocation of corporate investment. Cash-constrained firms increase investment after the dividend tax cut relative to cash-rich firms. Reallocation is stronger among closely held firms that experience a larger tax cut. This result is explained by higher external equity in cash-constrained firms and by higher dividends in cash-rich firms after the tax cut. |
Persistent Identifier | http://hdl.handle.net/10722/326078 |
ISSN | 2023 Impact Factor: 4.8 2023 SCImago Journal Rankings: 5.144 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Alstadsæter, Annette | - |
dc.contributor.author | Jacob, Martin | - |
dc.contributor.author | Michaely, Roni | - |
dc.date.accessioned | 2023-03-09T09:57:51Z | - |
dc.date.available | 2023-03-09T09:57:51Z | - |
dc.date.issued | 2017 | - |
dc.identifier.citation | Journal of Public Economics, 2017, v. 151, p. 74-83 | - |
dc.identifier.issn | 0047-2727 | - |
dc.identifier.uri | http://hdl.handle.net/10722/326078 | - |
dc.description.abstract | We test whether dividend taxes affect corporate investments. We exploit Sweden's 2006 dividend tax cut of 10 percentage points for closely held corporations and 5 percentage points for widely held corporations. Using rich administrative panel data and triple-difference estimators, we find that this dividend tax cut does not affect aggregate investment but that it affects the allocation of corporate investment. Cash-constrained firms increase investment after the dividend tax cut relative to cash-rich firms. Reallocation is stronger among closely held firms that experience a larger tax cut. This result is explained by higher external equity in cash-constrained firms and by higher dividends in cash-rich firms after the tax cut. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Public Economics | - |
dc.subject | Dividend taxation | - |
dc.subject | Investment | - |
dc.subject | Private Firms | - |
dc.title | Do dividend taxes affect corporate investment? | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jpubeco.2015.05.001 | - |
dc.identifier.scopus | eid_2-s2.0-84938118528 | - |
dc.identifier.volume | 151 | - |
dc.identifier.spage | 74 | - |
dc.identifier.epage | 83 | - |
dc.identifier.isi | WOS:000404311700007 | - |