uu.seUppsala University Publications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Dividend Taxation and the Cost of New Share Issues
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
2014 (English)Report (Other academic)
Abstract [en]

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.

Place, publisher, year, edition, pages
Uppsala, 2014. , 20 p.
Series
Working paper / Uppsala Center for Fiscal Studies, Uppsala University, 2014:12
Keyword [en]
dividend taxation, return of capital, share repurchases, equity trap, cost of capital, nucleus theory, growth path
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-232820OAI: oai:DiVA.org:uu-232820DiVA: diva2:749886
Available from: 2014-09-25 Created: 2014-09-25 Last updated: 2016-03-10Bibliographically approved

Open Access in DiVA

Version 3 (2015-10-13)(443 kB)98 downloads
File information
File name FULLTEXT03.pdfFile size 443 kBChecksum SHA-512
0202c6aaff1326f971d8e17f144ea4120f2abb811ed44c233b8adaaf07e255c330c4aa5780432f6015807b03409df730c841b12653eef313c71e1b28c2ab1a8f
Type fulltextMimetype application/pdf

Authority records BETA

Södersten, Jan

Search in DiVA

By author/editor
Södersten, Jan
By organisation
Uppsala Center for Fiscal Studies
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 188 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 571 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf