Tax neutrality of financial and dividend policies of the multinational with multinational ownership are studied using the trapped equity approach whereby all dividend taxes in the repatriation and onward distribution stage capitalize in the market value of foreign profits. The practice of...

There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment since the evidence is based mainly on the behaviour of large listed companies. This paper utilises a large register-based panel data set, where the vast majority of firms are...