Taxation, dividends, and share repurchases: Taking evidence global

We compile a comprehensive international dividend and capital gains tax data set to study tax-based explanations of corporate payout for a panel of 6,035 firms from 25 countries for the period 1990–2008. We find robust evidence that the tax penalty on dividends versus capital gains corresponds close...

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Detalles Bibliográficos
Autores: Jacob, M. (Marcus)|||/items/772ce136-20ce-4e11-af93-e04ce86e6b8d, Jacob, M. (Martin)|||/items/b4c80971-c877-4230-904c-54573540e482
Tipo de recurso: artículo
Fecha de publicación:2013
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/120189
Acceso en línea:https://hdl.handle.net/10171/120189
Access Level:acceso abierto
Palabra clave:Taxation of dividends
Capital gains tax
Stock repurchasing
Corporate finance
Mathematical models
Elasticity (Economics)
Dividend policy
Descripción
Sumario:We compile a comprehensive international dividend and capital gains tax data set to study tax-based explanations of corporate payout for a panel of 6,035 firms from 25 countries for the period 1990–2008. We find robust evidence that the tax penalty on dividends versus capital gains corresponds closely with firms’ propensity to pay dividends and repurchase shares, and with the amount of dividends and shares repurchased. Our coefficient estimates suggest a smaller tax effect than reported in recent single-country, single-event studies. Instead, our results correspond more closely with historic long-term estimates of the elasticity of dividends.