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...

Real-world tax systems distort investment and financing decisions. Therefore, taxes are integrated into capital budgeting models. However, these models use very simplified tax bases. Investors typically assume tax bases to be equal to cash flows less depreciation allowances. We analyse 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...