Auerbach, Alan; hassett, kevin allen - National Bureau of Economic Research (NBER) - 2000
source of finance for new investment projects is retained earnings. In this case, the tax advantage of retentions precisely … offsets the double taxation of subsequent dividends: taxes on dividends have no impact on the investment incentives of firms … dividends do respond to investment and cash flow for the nonfinancial corporate sector as a whole in a manner consistent with …