Taxes and Corporate Policies: Evidence from a Quasi Natural Experiment

• 成果类型: Article
• 署名作者: Doidge, Craig; Dyck, Alexander
• 署名单位: University of Toronto
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12101
• 发表日期: 2015
• 页码: 45-89
• 关键词: capital structure; PRICE BEHAVIOR; stock-prices; dividend; debt; DISCRETENESS; INVESTMENT; preference; benefits; taxation

摘要

We document important interactions between tax incentives and corporate policies using a quasi natural experiment provided by a surprise announcement that imposed corporate taxes on a group of Canadian publicly traded firms. The announcement caused a dramatic decrease in value. Prospective tax shields partially offset the losses, adding 4.6% to firm value on average, and vary with the tax status of the marginal investor. Further, firms adjust leverage, payout, cash holdings, and investment in response to changing tax incentives. Overall, the event study and time series evidence supports the view that taxes are important for corporate decision making.