This paper investigates the extent to which taxes affect a corporation?s decision to allocate its defined benefit plan?s assets between equity and bonds. Prior theoretical research shows that if a corporation integrates its pension investment policy and corporate financial policy, differences in...

Recently, several studies have concluded that individual investor level dividend taxes on corporate retained earnings are impounded in common stock prices, independent of the timing of dividend payments. We show that the model underlying these studies is internally inconsistent. We also discuss...