Shackelford, Douglas A.; Chen, Chongyang; Dai, Zhonglan; … - National Bureau of Economic Research (NBER) - 2011
explanation for the heretofore puzzling finding that, following the unprecedented 2003 reduction in dividend tax rates, non-dividend …-paying firms outperformed dividend-paying firms. Not surprisingly, we find that non-dividend-paying firms are more financial … constrained than dividend-paying firms are. When a firm's financial constraint and dividend choice are jointly considered, we find …