For more than 50 years, researchers around the world have been searching for a solution to Blacks famous "dividend-puzzle". However, despite tremendous efforts in different fields of economics, the influence of taxation on the distribution policy of firms has remained elusive and is still...

Classical corporation tax entails double taxation of corporate income. The alternative practice to impute corporation tax to the domestic recipients of dividends is shown, in the case of a company with international owners, effectively to convert the imputation system back to a classical...

Tax effects on distribution policy have been at the center of debate in the theoretical and empirical literature for over half a century. Theoretically, there are two major schools of thought on the matter. The “traditional view” predicts an influence of taxation on firms' payouts, while the...

Extensive empirical research concerning the impact of taxes on corporate decisions has had trouble identifying seemingly obvious effects. Perhaps the problem is that the seemingly obvious tax predictions are not quite right. We provide an equilibrium model with both corporate and personal taxes....

Bangladesh stock markets experienced an unsustainable bubble and burst in December 2010. Since then the markets observed a falling turnover and a depressed phase of pricing. Millions of small savers lost their savings and the issue became a public policy debacle for the then government. A...

The European Union (EU) has no explicit common income tax law. Nevertheless, Court of Justice decisions have driven EU member states to adopt more similar corporate tax systems, and thus, to align the tax treatment of corporate profit distributions - dividends and capital gains. This paper...

We analyse if the Brazilian Allowance for Corporate Equity (ACE-type system) reduces the debt tax bias. Specifically, we study if the continuous treatment effect of interest on equity negatively affects the level of financial leverage. We find that the tax policy implemented is similar to the...

For more than 50 years, researchers around the world have tirelessly been searching for a solution to Blacks famous “dividend-puzzle.” However, despite tremendous efforts in different fields of economics, the influence of taxation on the distribution policy of firms has remained elusive and...

This paper investigates the impact of the 2001 tax reform in Germany on dividend announcement returns. With this major tax reform, the full imputation system was replaced by the half-income system, which had a significant impact on the relative taxation of dividends and capital gains for most...

Based on a large panel data set of listed German firms we analyze the corporate payout behavior around the German Tax Reduction Act 2001 (GTRA). The GTRA considerably changed the tax preference of shareholders and consequently affected the attractiveness of different forms of payout. Using the...