Similar Search Results

Do Managers Do Good with Other People's Money?

Cheng, Ing-Haw - 2013

We find support for two key predictions of an agency theory of unproductive corporate social responsibility. First, increasing managerial ownership decreases measures of firm goodness. We use the 2003 Dividend Tax Cut to increase after-tax insider ownership. Firms with moderate levels of insider...

Persistent link: https://www.econbiz.de/10012459228

Adverse Selection In Credit Markets and Regressive Profit Taxation

Scheuer, Florian - 2012

In many countries, taxes on businesses are less progressive than labor income taxes. This paper provides a justification for this pattern based on adverse selection that entrepreneurs face in credit markets. Individuals choose between becoming entrepreneurs or workers and differ in their skill...

Persistent link: https://www.econbiz.de/10012460254

An Agency Theory of Dividend Taxation

Chetty, Raj - 2007

Recent empirical studies of dividend taxation have found that: (1) dividend tax cuts cause large, immediate increases in dividend payouts, and (2) the increases are driven by firms with high levels of shareownership among top executives or the board of directors. These findings are inconsistent...

Persistent link: https://www.econbiz.de/10012465108

Dividends and Taxes

Gordon, Roger - 2006

How do dividend taxes affect firm behavior and what are their distributional and efficiency effects? To answer these questions, the first problem is coming up with an explanation for why firms pay dividends, in spite of their tax penalty

Persistent link: https://www.econbiz.de/10012466376

Taxes and Growth in a Financially Underdeveloped Country : Evidence from the Chilean Investment Boom

Hsieh, Chang-Tai - 2006

This paper argues that taxation of retained profits is particularly distortionary in an economy with good growth prospects and poorly developed financial markets because it primarily reduces the investment of financially constrained firms, investment that has marginal product greater than the...

Persistent link: https://www.econbiz.de/10012466564

On the Marginal Source of Investment Funds

Auerbach, Alan J. - 2000

Under the new view' of dividend taxation developed in Auerbach (1979), Bradford (1981) and King (1977) the marginal 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:...

Persistent link: https://www.econbiz.de/10012470922

Markups and Inequality

Boar, Corina - 2019

We study the aggregate and distributional impact of product market interventions and profit taxes using a model of firm dynamics, credit constraints and incomplete markets. A key ingredient of our model is that markups are endogenous so that the markup a producer charges depends on the amount of...

Persistent link: https://www.econbiz.de/10012479902

Dividend Taxation and Firm Performance with Heterogeneous Payout Responses

Bilicka, Katarzyna A.; Guceri, Irem; Koumanakos, … - National Bureau of Economic Research - 2022

We analyze the short and long-run performance of firms that were differentially affected by a new tax on dividends in the lead-up to the Global Financial Crisis. We use exogenous policy variation for firms with different legal statuses and financial year-end dates to causally identify the policy...

Persistent link: https://www.econbiz.de/10013477300

The Price Impact of Joining a Currency Union : Evidence from Latvia

Cavallo, Alberto - 2014

consumption goods. We consider the case of Latvia, which recently dropped its pegged exchange rate and joined the euro zone. We … between Latvia and euro zone countries collapsed swiftly following entry to the euro. The percentage of goods with nearly … identical prices in Latvia and Germany increased from 6 percent to 89 percent. The median size of price differentials declined …

Persistent link: https://www.econbiz.de/10012458441