How do dividend taxes affect stock volatility? In this paper, I use a decrease in dividend taxes as a natural … contract, changes in stock volatility due to dividend taxes may increase agency costs and therefore decrease overall welfare …-neutral shareholders, dividend taxes may exacerbate agency costs. The increase in agency costs will decrease shareholder welfare, which can …

examines whether the volatility of tax payments is associated with dividend payouts. Consistent with the predictions, results … volatile tax payments and the likelihood of dividend payouts is weaker for firms that distribute dividends to alleviate agency … conflicts. Similarly, the link between volatile tax payments and the amount of dividend payouts is weaker for firms that hold …

output elasticity of the budget balance confirms the result that an increase in GDP by about 1 percentage point above the …