The 2003 US Dividend Tax Cut, Small Business Loan Supply, and the Real Economy

• 成果类型: Article
• 署名作者: Li, Oliver Zhen; Lin, Yupeng; Zhang, Keyuan
• 署名单位: National University of Singapore; Shanghai Jiao Tong University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826; 1558-7967
• DOI: 10.2308/TAR-2023-0444
• 发表日期: 2026-05
• 页码: 377-411
• 关键词: dividend tax; Credit supply; small business loan; Real effect; business formations; employment.; CAPITAL GAINS TAXES; corporate-taxation; payout policy; credit; cost; equity; RISK; INFORMATION; INNOVATION; GROWTH

摘要

This paper examines the credit supply-side effect of the U.S. 2003 dividend tax cut on the real economy through the banking sector. We show that C-corporation banks (treatment group), particularly those capital-constrained, increase the supply of small business loans more than S-subchapter banks (control group) following the tax cut, aligning with the old view of dividend taxation and the supply-side effect rooted in credit rationing. Such an enhanced small business loan supply stemming from the tax cut translates into real effects on the economy. We find that areas with a greater presence of C-corporation banks exhibit more small business formations, employment, and innovations. The positive real effects are concentrated in subsamples when business growth opportunities are more abundant or international trade exposures are higher. Overall, our findings add to the literature on the real effects of the tax cut by showing an important yet unexplored bank credit supply channel.