This paper explores implications of differential personal taxation for corporate investment and dividend decisions. The … personal tax advantage of dividend deferral causes shareholders to generally prefer greater investment in real assets under … internal as opposed to external financing. Furthermore, dividend deferral is shown to be costly at the corporate level, causing …

We analyze the effects of dividend taxation in a general equilibrium business cycle model with an occasionally …-binding investment credit limit. Permanent dividend tax reforms distort capital investment decisions in the binding long-run equilibrium … the `traditional' and `new' views of dividend taxation, and highlights the importance of measuring the firm's initial …

There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment … Finnish dividend tax increase of 2005. This reform creates a useful opportunity to measure enterprise behaviour, since it … old view of dividend taxation. -- corporate income taxation ; dividends ; investment ; tax reform …

The paper analyzes the efficiency costs of dividend taxation in an effort-based corporate agency model in which non …-verifiable managerial effort enhances taxable profits. We show that investment changes following a rise in dividend taxes might not be … sufficient to infer the efficiency cost of dividend taxation as well as the financing regime of the firm that underlies the …