Earticle

초록

영어

This study offers a novel contribution to the literature on taxation and corporate finance by integrating the insights of Jacob and Jacob (2013) and Bonaimé et al. (2014) to examine the impact of the dividend tax penalty (taxation of dividends relative to capital gains) on investor valuation of corporate investments. While Jacob and Jacob (2013) establish that higher dividend taxes incentivize stock repurchases, and Bonaimé et al. (2014) demonstrate that a higher ratio of stock repurchases to total payout increases financial flexibility due to the greater flexibility of stock repurchases compared to dividends, this study bridges these findings to demonstrate how tax-induced shifts in payout policy differentially affect investor perceptions of capital expenditure and R&D. The findings reveal that tax policies favoring stock repurchases do not influence the former but positively correlate with the latter. This suggests that tax policies favoring stock repurchases may foster innovation by increasing financial flexibility for R&D investment, leading to higher valuations from investors. This study clarifies the link between taxes and the value of corporate investments, showing that the impact is significant.

목차

Abstract
Ⅰ. Introduction
Ⅱ. Sample and Summary Statistics
Ⅲ. Methodology and Results
Ⅳ. Robustness Tests
Ⅴ. Conclusion
References

키워드

저자

• Jinyoung Yang [ Associate Professor, Department of Global Finance and Banking, Inha University, Republic of Korea ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  무역통상학회지 [Journal of Korea Research Association of International Commerce]

• 간기

  격월간

• pISSN

  1738-4354

• 수록기간

  2001~2025

• 등재여부

  KCI 등재

• 십진분류

  KDC 326 DDC 380