What if dividends were tax-exempt ? : evidence from a natural experiment

Isakov, Dušan (University of Fribourg, Switzerland) ; Pérignon, Christophe (HEC Paris, France) ; Weisskopf, Jean-Philippe (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

We study the effect of dividend taxes on the payout and investment policies of publicly listed firms. We exploit a unique setting in Switzerland where, following the corporate tax reform of 2011, some but not all firms were suddenly able to pay tax-exempt dividends. We show that treated firms increase their dividend payout by around 30% after the tax cut. The impact on payout is less pronounced for firms prone to agency conflicts. We find a significant positive abnormal stock return after the announcement of the payment of a tax-exempt dividend. However, reducing dividend taxes does not boost investment.


Mots-clés:
Type d'article:
scientifique
Faculté:
Economie et Services
Ecole:
EHL
Institut:
Aucun institut
Classification:
Economie/gestion
Date:
2021-01
Pagination:
40 p.
Veröffentlicht in:
The review of financial studies
Numérotation (vol. no.):
To be published
DOI:
ISSN:
0893-9454
Le document apparaît dans:

Note: The file is under embargo until: 2023-01-01


 Datensatz erzeugt am 2021-06-11, letzte Änderung am 2021-06-21

Fulltext:
Volltext herunterladen
PDF

Dieses Dokument bewerten:

Rate this document:
1
2
3
 
(Bisher nicht rezensiert)