examine how dividend taxation affects payout. Utilizing an exogenous shock to dividend taxation, we show that absent any … frictions, dividend taxation has a large impact on payout. As agency issues and shareholder conflicts increase, owners' tax …-preferences have significantly smaller impact on payout. We identify three mechanisms that reduce the dividend-tax sensitivity …

-related literature on dividends explores the implications of differential taxes on dividends and capital gains on stocks’ valuation and … firms’ propensity to pay out cash in the form of dividends. The issues investigated in this literature are of central … perspective, dividends should be minimized. We review the theoretical as well as empirical literature on Signaling …

repurchases and dividends being externally financed, primarily with debt. Most externally financed payouts are the result of firms …

in favor of agency considerations. Studies centered on the May 2003 dividend tax cut confirm that differences in the … taxation of dividends and capital gains have only a second-order impact on setting payout policy. None of the three traditional … dividends as the prime vehicle for corporate payouts. Other payout motives such as changes in compensation practices and …

most persuasive with regard to agency considerations. Studies centered on the May 2003 dividend tax cut confirm that … differences in the taxation of dividends and capital gains have only a second-order impact on setting payout policy. None of the … which repurchases have replaced dividends as the prime vehicle for corporate payouts. Other payout motivations, such as …

dividends. We show both theoretically and empirically that dividends signal safer, rather than higher, future profits. Using the … model's predictions, cash-flow volatility changes in the opposite direction from that of dividend changes and larger changes …