Taxation and the cash flow sensitivity of dividends

Marcus Jacob and Martin Jacob

Economics Letters, 2013, vol. 118, issue 1, 186-188

Abstract: This paper investigates tax reasons for cross-sectional deviations from the general consensus in literature that a firm’s cash flow has a positive effect on dividend payout. We use a large multinational panel data set to show that the positive cash flow sensitivity of dividends is decreasing in dividend taxes.

Keywords: Taxation; Dividends; Cash flow sensitivity (search for similar items in EconPapers)
JEL-codes: G10 H H24 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:1:p:186-188

DOI: 10.1016/j.econlet.2012.09.019

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