TY - UNPD A1 - Alstadsaeter, Annette A1 - Jacob, Martin A1 - Michaely, Roni T1 - Do dividend taxes affect corporate investment? N2 - We test whether dividend taxes affect corporate investments. We exploit Sweden’s 2006 dividend tax cut of 10 percentage points for closely held corporations and five percentage points for widely held corporations. Using rich administrative panel data and tripledifference estimators, we find that this dividend tax cut does not affect aggregate investment but that it affects the allocation of corporate investment. Cash-constrained firms increase investment after the dividend tax cut relative to cash-rich firms. Reallocation is stronger among closely held firms that experience a larger tax cut. This result is explained by higher external equity in cashconstrained firms and by higher dividends in cash-rich firms after the tax cut. The heterogeneous investment responses imply that the dividend tax cut raises efficiency by improving allocation of investment. T3 - FAccT Center Working Paper Series - 15/2014 KW - Schweden KW - Sweden KW - Kapitalanlage KW - Investment KW - Dividendenbesteuerung KW - Dividend taxation KW - Privatunternehmen KW - Private firms Y1 - 2018 UR - https://opus4.kobv.de/opus4-whu/frontdoor/index/index/docId/663 UR - https://nbn-resolving.org/urn:nbn:de:hbz:992-opus4-6636 PB - WHU - Otto Beisheim School of Management CY - Vallendar ER -