[PDF] Tax Avoidance Dividend Signaling And Shareholder Taxation In An Open Economy eBook

Author : B. Douglas Bernheim
Publisher :
Page : 56 pages
File Size : 35,32 MB
Release : 1992
Category : Corporations
ISBN :

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We propose and implement a new test of the dividend signaling hypothesis that is designed to discriminate between dividend signaling and other theories that would account for the apparent existence of a dividend preference. Our test refines the use of data on stock price responses to dividend announcements. In particular, we study the effect of dividend taxation on the bang-for-the-buck, which we define as the share price response per dollar of dividends. Most dividend signaling models imply that an increase in dividend taxation should increase the bang-for-the-buck. In contrast, other dividend preference theories imply that an increase in dividend taxation should decrease the bang-for-the-buck. Since there have recently been considerable variation in the tax treatment of dividends, we are able to study dividend announcement effects under different tax regimes. Our central finding is that there is a strong positive relationship between dividend tax rates and the bang-for-the-buck. This result supports the dividend signaling hypothesis, and is consistent with alternatives. The paper also provides corroborating evidence based on the relationship between the bang-for-the-buck and bond ratings.

Author : Dan Amiram
Publisher :
Page : 61 pages
File Size : 40,15 MB
Release : 2018
Category :
ISBN :

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We exploit changes in a country's integration of corporate and shareholder taxes to identify the effect of investor-level taxes on costly corporate tax avoidance. Specifically, we rely on European countries eliminating imputation systems in different years in response to supranational judicial rulings. These eliminations, which are exogenous to the firm, remove managers' disincentive to engage in tax avoidance if they consider investor-level taxes. Using a difference-in-differences model with fixed effects, we find that the average firm affected by an elimination reduces its cash effective tax rate by 5.5 percent. Placebo tests support that this effect is present only for countries and years for which eliminations occur. Consistent with our cross-sectional predictions, we find that the results are stronger for firms with lower growth opportunities, higher dividend payout, lower foreign income, and higher closely held ownership. Further analysis provides evidence consistent with shifting income to foreign countries as one method of tax avoidance employed.

Author : James A. Mirrlees
Publisher : Oxford University Press
Page : 1360 pages
File Size : 30,38 MB
Release : 2010-04-29
Category : Business & Economics
ISBN : 0199553750

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The Review was chaired by Nobel Laureate Professor Sir James Mirrlees of the University of Cambridge and the Chinese University of Hong Kong. --

Author : A. B. Atkinson
Publisher : Oxford University Press
Page : 799 pages
File Size : 38,71 MB
Release : 2010-04
Category : Business & Economics
ISBN : 0199286892

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This volume brings together an exciting range of new studies of top incomes in a wide range of countries from around the world. The studies use data from income tax records to cast light on the dramatic changes that have taken place at the top of the income distribution. The results cover 22 countries and have a long time span, going back to 1875.

Author : Wolfgang Schön
Publisher : Springer Science & Business Media
Page : 423 pages
File Size : 21,63 MB
Release : 2008-03-12
Category : Business & Economics
ISBN : 3540772766

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Academic research shows that well-known principal-agent and capital market problems are strongly influenced by tax considerations. Against this background, this volume is the first to present a fully-fledged overview of the interdependence of tax and corporate governance. Not only the basic political, legal and economic questions but also major topics like income measurement, shareholding structures, corporate social responsibility and tax shelter disclosure are covered.

Author : Alberto Giovannini
Publisher : University of Chicago Press
Page : 332 pages
File Size : 25,51 MB
Release : 1996-02-15
Category : Business & Economics
ISBN : 9780226297026

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As a united global economy evolves, economists and policymakers are forced to consider whether the current system of taxing income is inconsistent with the trend toward liberalized world financial flows and increased international competition. To help assess existing tax policies and incentives, this volume presents new research on how taxes affect the investment and financing decisions of multinationals today. The contributors examine the effects of taxation on decisions about international financial management, business investment, and international income shifting. They consider the influence of tax rules on dividend policy decisions within multinationals; the extent to which tax incentives affect the level and location of research and development across countries; and the fact that foreign-controlled companies operating in the United States pay lower taxes than do domestically controlled companies. The contributors to this volume are Rosanne Altshuler, Alan J. Auerbach, Neil Bruce, Timothy Goodspeed, Roger H. Gordon, Harry Grubert, Bronwyn H. Hall, David Harris, Kevin Hassett, James R. Hines Jr., Roy D. Hogg, Joosung Jun, Jeffrey K. Mackie-Mason, Jack M. Mintz, Randall Morck, John Mutti, T. Scott Newlon, James M. Poterba, Joel Slemrod, Deborah Swenson, G. Peter Wilson, and Bernard Yeung.

Author : Peter Harris
Publisher : Cambridge University Press
Page : 651 pages
File Size : 27,43 MB
Release : 2013-03-07
Category : Business & Economics
ISBN : 1107033535

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A comprehensive and comparative analysis of corporate tax systems, focusing on structural defects and how they are addressed in practice.