I examine whether and to what extent tax uncertainty affects a firm's dividend payouts. Based on the argument that tax uncertainty impairs the persistence and predictability of after-tax cash flows, I hypothesize and find that firms with greater tax uncertainty exhibit a lower probability of...

Purpose – This paper investigates the impact of market-level uncertainty on dividend and repurchase decisions. Design/methodology/approach – Using a large dataset over a nearly 50 year period, the author examines the choice to pay dividends and repurchase shares using logit and multinomial...