Discusses the connection between conventional models of business investment and the literature on the imperfections in …. This cost premium for external financing is integrated into an existing model of firm financial and investment decisions … income ratio. Results show that firms that retain most of their income have a greater sensitivity of investment to cash flow …

will have no impact on corporate investment decisions. This paper develops econometric tests which distinguish between … these two views of dividend taxation. By extending Tobin's "q" theory of investment to incorporate taxes at both the … corporate and personal levels, the implications of each view for corporate investment decisions can be derived. The competing …

will have no impact on corporate investment decisions. This paper develops econometric tests which distinguish between … these two views of dividend taxation. By extending Tobin's quot;qquot; theory of investment to incorporate taxes at both the … corporate and personal levels, the implications of each view for corporate investment decisions can be derived. The competing …