Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes
We use panel data for 1,218 UK industrial and commercial companies between 1970 and 1990 to investigate whether dividends are affected by taxes. Cross-section variation in the tax cost of paying dividends results from surplus advance corporation tax (ACT) affecting some firms during this period. Obs...
| Main Authors: | , , |
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| Format: | Journal article |
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1996
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| _version_ | 1797083387319549952 |
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| author | Devereux, M Bond, S Chennells, L |
| author_facet | Devereux, M Bond, S Chennells, L |
| author_sort | Devereux, M |
| collection | OXFORD |
| description | We use panel data for 1,218 UK industrial and commercial companies between 1970 and 1990 to investigate whether dividends are affected by taxes. Cross-section variation in the tax cost of paying dividends results from surplus advance corporation tax (ACT) affecting some firms during this period. Observations on firms moving into and out of surplus ACT allow us to identify the effect of taxes whilst controlling for unobserved firm-specific influences. Our results suggest that the tax cost has a statistically significant and quantitatively important influence on dividends. |
| first_indexed | 2024-03-07T01:41:04Z |
| format | Journal article |
| id | oxford-uuid:96dc2bf5-a852-4930-a62d-b78fd02f83b1 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T01:41:04Z |
| publishDate | 1996 |
| record_format | dspace |
| spelling | oxford-uuid:96dc2bf5-a852-4930-a62d-b78fd02f83b12022-03-26T23:55:47ZTaxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxesJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:96dc2bf5-a852-4930-a62d-b78fd02f83b1Saïd Business School - Eureka1996Devereux, MBond, SChennells, LWe use panel data for 1,218 UK industrial and commercial companies between 1970 and 1990 to investigate whether dividends are affected by taxes. Cross-section variation in the tax cost of paying dividends results from surplus advance corporation tax (ACT) affecting some firms during this period. Observations on firms moving into and out of surplus ACT allow us to identify the effect of taxes whilst controlling for unobserved firm-specific influences. Our results suggest that the tax cost has a statistically significant and quantitatively important influence on dividends. |
| spellingShingle | Devereux, M Bond, S Chennells, L Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes |
| title | Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes |
| title_full | Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes |
| title_fullStr | Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes |
| title_full_unstemmed | Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes |
| title_short | Taxes and company dividends: a microeconometric investigation exploiting cross-section variation in taxes |
| title_sort | taxes and company dividends a microeconometric investigation exploiting cross section variation in taxes |
| work_keys_str_mv | AT devereuxm taxesandcompanydividendsamicroeconometricinvestigationexploitingcrosssectionvariationintaxes AT bonds taxesandcompanydividendsamicroeconometricinvestigationexploitingcrosssectionvariationintaxes AT chennellsl taxesandcompanydividendsamicroeconometricinvestigationexploitingcrosssectionvariationintaxes |