The Effect of Dividend Tax Policy on Corporate Investment

The Job Growth and Taxpayer Relief Reconciliation Act of 2003 lowered dividend taxes to the same rate as capital gains taxes in the United States using the Pecking Order Theory as a framework. This paper develops a model that examines the effect the tax cut will have on corporate investment. The mod...

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Detalles Bibliográficos
Autor principal: Jimmy Torrez
Formato: Artículo científico
Publicado: Centro de Investigaciones Comerciales e Iniciativas Académicas 2006
Materias:
Administración y Contabilidad
Corporate Investment
Tax Policy
Dividends
Pecking Order Theory
Acceso en línea:http://www.redalyc.org/articulo.oa?id=63111101
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=pr/pr-004&d=63111101oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-63111101oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Administración y Contabilidad
Corporate Investment
Tax Policy
Dividends
Pecking Order Theory
spellingShingle Administración y Contabilidad
Corporate Investment
Tax Policy
Dividends
Pecking Order Theory
Jimmy Torrez
The Effect of Dividend Tax Policy on Corporate Investment
topic_facet Administración y Contabilidad
Corporate Investment
Tax Policy
Dividends
Pecking Order Theory
description The Job Growth and Taxpayer Relief Reconciliation Act of 2003 lowered dividend taxes to the same rate as capital gains taxes in the United States using the Pecking Order Theory as a framework. This paper develops a model that examines the effect the tax cut will have on corporate investment. The model finds that the dividend rate tax cut will increase the corporate cost of capital and lower investment. Therefore, any increase in the value of the stock market from this act will simply be a response to an increase in after tax returns and not from an increase in production.
format Artículo científico
Artículo científico
author Jimmy Torrez
author_facet Jimmy Torrez
author_sort Jimmy Torrez
title The Effect of Dividend Tax Policy on Corporate Investment
title_short The Effect of Dividend Tax Policy on Corporate Investment
title_full The Effect of Dividend Tax Policy on Corporate Investment
title_fullStr The Effect of Dividend Tax Policy on Corporate Investment
title_full_unstemmed The Effect of Dividend Tax Policy on Corporate Investment
title_sort effect of dividend tax policy on corporate investment
publisher Centro de Investigaciones Comerciales e Iniciativas Académicas
publishDate 2006
url http://www.redalyc.org/articulo.oa?id=63111101
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=pr/pr-004&d=63111101oai
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