The Effect of Dividend Tax Policy on Corporate Investment

dc.creator	Jimmy Torrez
dc.date	2006
dc.date.accessioned	2022-03-17T18:04:42Z
dc.date.available	2022-03-17T18:04:42Z
dc.identifier	http://www.redalyc.org/articulo.oa?id=63111101
dc.identifier.uri	http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/50240
dc.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.
dc.format	application/pdf
dc.language	en
dc.publisher	Centro de Investigaciones Comerciales e Iniciativas Académicas
dc.relation	http://www.redalyc.org/revista.oa?id=631
dc.rights	Forum Empresarial
dc.source	Forum Empresarial (Puerto Rico) Num.1 Vol.11
dc.subject	Administración y Contabilidad
dc.subject	Corporate Investment
dc.subject	Tax Policy
dc.subject	Dividends
dc.subject	Pecking Order Theory
dc.title	The Effect of Dividend Tax Policy on Corporate Investment
dc.type	artículo científico