THE EFFICIENCY COSTS OF DIVIDEND TAXATION WITH MANAGERIAL FIRMS

• 成果类型: Article
• 署名作者: Koethenbuerger, Marko; Stimmelmayr, Michael E.
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueab064
• 发表日期: 2022
• 页码: 1123-1149
• 关键词: corporate-taxation; tax-reform; quiet life; cash flow; INVESTMENT; income; decentralization; PRODUCTIVITY; constraints; incentives

摘要

The paper provides a positive and efficiency analysis of dividend taxation in a corporate agency model with a costly managerial effort. Unlike existing (agency) models, this model is consistent with empirical work in corporate finance and able to predict empirically observed investment responses to dividend taxation. In addition, we show that investment changes are not sufficient to infer, first, the efficiency cost of dividend taxation and, second, the financing regime underlying firms' investments. We provide a testable implication that allows to empirically uncover the source of investment finance by comparing investment responses to dividend taxes and managerial incentive pay.