| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w17169 |
| 来源ID | Working Paper 17169 |
| Does Financial Constraint Affect Shareholder Taxes and the Cost of Equity Capital? | |
| Chongyang Chen; Zhonglan Dai; Douglas Shackelford; Harold Zhang | |
| 发表日期 | 2011-06-23 |
| 出版年 | 2011 |
| 语种 | 英语 |
| 摘要 | We show that firms with the least elastic demand for equity capital should benefit the most from reductions in shareholder taxes. Consistent with this prediction, we find that, following 1997 and 2003 cuts in U.S. individual shareholder taxes, financially constrained firms, and particularly those with disproportionate ownership by U.S. individuals, enjoyed larger reductions in their cost of equity capital than did other firms. The results are consistent with the incidence of the tax reductions falling mostly on firms with the most pressing needs for capital. Furthermore, the findings provide an explanation for the heretofore puzzling finding that, following the unprecedented 2003 reduction in dividend tax rates, non-dividend-paying firms outperformed dividend-paying firms. Not surprisingly, we find that non-dividend-paying firms are more financial constrained than dividend-paying firms are. When a firm's financial constraint and dividend choice are jointly considered, we find that the extent of financial constraint affects the change in the cost of equity capital, but whether a firm issues a dividend does not. In other words, it appears that the extant studies suffered from the omission of a correlated variation, the extent to which a firm is financially constrained. |
| 主题 | Financial Economics ; Portfolio Selection and Asset Pricing ; Corporate Finance ; Public Economics ; Taxation |
| URL | https://www.nber.org/papers/w17169 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/574844 |
| 推荐引用方式 GB/T 7714 | Chongyang Chen,Zhonglan Dai,Douglas Shackelford,et al. Does Financial Constraint Affect Shareholder Taxes and the Cost of Equity Capital?. 2011. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w17169.pdf（288KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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