Arbeitspapier
Dividend Taxation and the Cost of New Share Issues
This paper examines how the effects of dividend taxation on the cost of new equity funds depend on whether or not shareholders can recover their original equity injections without being subject to the dividend tax. We point out the alternative assumptions in the literature on this, and we compare two different tax regimes, one where it is impossible for the firm to pay cash to its shareholders that is not taxed as dividends, the other where the shareholders are allowed a tax-free return of the original capital contributed through new issues. We conclude that any model, which explicitly or implicitly assumes that the shareholders cannot recover their original equity injections without being subject to the dividend tax, exaggerates the distortive effects of the tax.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 5001
- Klassifikation
-
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
- Thema
-
dividend taxation
return of capital
share repurchases
equity trap
cost of capital
nucleus theory
growth path
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lindhe, Tobias
Södersten, Jan
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2014
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:46 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Lindhe, Tobias
- Södersten, Jan
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2014
Ähnliche Objekte (12)
Dividend taxation, share repurchases and the equity trap
Dividend taxation, share repurchases and the equity trap
Distortive effects of dividend taxation
Employment, wages, and dividend taxation
Environmental taxation and the double dividend
Dividend taxation and DAX futures prices
Taxation and Corporate Dividend Behaviour in India
Share repurchase and dividend payout behaviour: The South African experience
Dissecting dividend decisions: Some clues about the effects of dividend taxation from recent UK reforms
Are dividend taxes and tax imputation credits capitalized in share values?
A note on the timing of dividend receipts in share returns
Preference shares: analysis of Sharīʿah issues
Dividend taxation, share repurchases and the equity trap
Dividend taxation, share repurchases and the equity trap
Distortive effects of dividend taxation
Employment, wages, and dividend taxation
Environmental taxation and the double dividend
Dividend taxation and DAX futures prices
Taxation and Corporate Dividend Behaviour in India
Share repurchase and dividend payout behaviour: The South African experience
Dissecting dividend decisions: Some clues about the effects of dividend taxation from recent UK reforms
Are dividend taxes and tax imputation credits capitalized in share values?
A note on the timing of dividend receipts in share returns
Preference shares: analysis of Sharīʿah issues
Dividend taxation, share repurchases and the equity trap
Dividend taxation, share repurchases and the equity trap
Distortive effects of dividend taxation
Employment, wages, and dividend taxation
Environmental taxation and the double dividend
Dividend taxation and DAX futures prices
Taxation and Corporate Dividend Behaviour in India
Share repurchase and dividend payout behaviour: The South African experience
Dissecting dividend decisions: Some clues about the effects of dividend taxation from recent UK reforms
Are dividend taxes and tax imputation credits capitalized in share values?
A note on the timing of dividend receipts in share returns