Abstract
The effect of shareholder taxation on corporate dividend policy is a major controversy in financial economics. The Tax Reform Act of 1986 eliminated the statutory tax disadvantage of dividends versus long-term capital gains for individual shareholders. Using aggregate time series data I find evidence that corporate dividend payout has become more generous in the period after tax reform.
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Lamdin, D.J. Shareholder taxation and aggregate dividend payout: Evidence from the tax reform act of 1986. Rev Quant Finan Acc 3, 459–468 (1993). https://doi.org/10.1007/BF02409623
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DOI: https://doi.org/10.1007/BF02409623