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The Equity Trap, the Cost of Capital and the Firm´s Growth Path

Lindhe, Tobias; Södersten, Jan - 2006

This paper reconsiders Sinn's (1991) nucleus theory of the corporation by comparing two different regimes for the equity trap. In the first of these, all cash paid to the shareholders is taxed as dividends, in the second, shareholders are allowed a tax-free return of capital contributed through...

Persistent link: https://www.econbiz.de/10010321558

Economic Effects of Taxing Different Organizational Forms under a Dual Income Tax

Lindhe, Tobias; Södersten, Jan; Öberg, Ann - 2003

This paper analyzes the economic effects of different income splitting rules for closely held corporations and sole … proprietorships/partnerships in a tax system with a dual income tax. We conclude that the tax rules for closed corporations offer … for sole proprietorships/partnerships, because the income-splitting rules both neutralize the impact of the high labor …

Persistent link: https://www.econbiz.de/10010321596

Dividend taxation, share repurchases and the equity trap

Lindhe, Tobias; Södersten, Jan - 2009

This paper reconsiders the effects of dividend taxation. Particular attention is paid to the form of the 'equity trap', that is, the extent to which cash paid to the shareholders must be taxed as dividends. Our analysis shows that Sinn's (1991) criticism of the well-known King and Fullerton...

Persistent link: https://www.econbiz.de/10010321462