We examine the impact of tax burden on cash distribution using a sample of Brazilian firms, which are allowed by law to distribute cash to shareholders in two forms: dividends and tax-advantaged interest on equity. The Brazilian institutional setting is superior to those used in prior studies...

In December 2000, the Sao Paulo Stock Exchange launched a new premium market segment for companies that voluntarily commit to "good practices of corporate governance." We construct a composite index (NM6) that combines six proxies for the main governance practices targeted by Bovespa’s reform....