-related literature on dividends explores the implications of differential taxes on dividends and capital gains on stocks’ valuation and … firms’ propensity to pay out cash in the form of dividends. The issues investigated in this literature are of central … perspective, dividends should be minimized. We review the theoretical as well as empirical literature on Signaling …

dividend income at the household level. A reduction of the tax burden on dividends is therefore merely an undesirable subsidy …This paper analyses the optimal taxation of dividends and other types of income from portfolio investment. We show that …, in an open economy, it is not desirable to offer double taxation relief for dividends paid by domestic firms to domestic …