Dividend Taxes and Corporate Investment: A Bibliometric Analysis
Main Article Content
Abstract
Various studies have debated how changes in dividend tax rate affect investment decisions. While some argue that dividend tax policies impact investment decisions, others have suggested that these taxes have no relevant influence on such decisions. This study examines how researchers from various countries investigate the relationship between dividend tax policies and investment decisions. Utilizing a bibliometric analysis approach, this study explores research trends in the area of dividend tax policies and investment decisions. Data were sourced from the Scopus database and analyzed using Bibliometrix R-package (Biblioshiny) tools and VOSviewer. The study aims to provide insights into publication trends, countries involved in research in this field, the most relevant journals, the most productive researchers, and recent and future theme trends. By doing so, this study offers a more complete overview of research developments on dividend tax policies and investment, and highlights potential directions for future research.
Article Details
References
Alstadsæter, A., & Fjærli, E. (2009). Neutral taxation of shareholder income? Corporate responses to an announced dividend tax. International Tax and Public Finance, 16(4), 571–604. https://doi.org/10.1007/s10797-009-9107-2
Alstadsæter, A., Jacob, M., & Michaely, R. (2017). Do dividend taxes affect corporate investment? Journal of Public Economics, 151, 74–83. https://doi.org/10.1016/j.jpubeco.2015.05.001
Alstadsæter, A., Kopczuk, W., & Telle, K. (2019). Social networks and tax avoidance: Evidence from a well-defined Norwegian tax shelter. International Tax and Public Finance, 26(6), 1291–1328. https://doi.org/10.1007/s10797-019-09568-3
Anagnostopoulos, A., & Atesagaoglu, O. E. (2023). Shareholder tax cuts with household and firm heterogeneity. Finance Research Letters, 57, 104173. https://doi.org/10.1016/j.frl.2023.104173
Anagnostopoulos, A., Cárceles-Poveda, E., & Lin, D. (2012). Dividend and capital gains taxation under incomplete markets. Journal of Monetary Economics, 59(7), 599–611. https://doi.org/10.1016/j.jmoneco.2012.06.007
Andres, C., Betzer, A., van den Bongard, I., & Goergen, M. (2019). Dividend policy, corporate control and the tax status of the controlling shareholder. Journal of Industrial and Business Economics, 46(2), 157–189. https://doi.org/10.1007/s40812-018-0100-6
Auerbach, A. J., & Hasset, K. (1992). Tax policy and business fixed investment in the United States. Journal of Public Economic, 47(2), 141–170.
Baker, H. K., & Powell, G. E. (2012). Dividend policy in Indonesia: Survey evidence from executives. Journal of Asia Business Studies, 6(1), 79–92. https://doi.org/10.1108/15587891211191399
Bell, L., & Jenkinson, T. (2002). New evidence of the impact of dividend taxation and on the identity of the marginal investor. The Journal of Finance, 57(3), 1321–1346. https://doi.org/10.1111/1540-6261.00462
Brown, J. R., Liang, N., & Weisbenner, S. (2007). Executive financial incentives and payout policy: Firm responses to the 2003 dividend tax cut. The Journal of Finance, 62(4), 1935–1965. https://doi.org/10.1111/j.1540-6261.2007.01261.x
Casey, K. M., Anderson, D. C., Mesak, H. I., & Dickens, R. N. (1999). Examining the impact of the 1986 tax reform act on corporate dividend policy: A new methodology. Financial Review, 34(3), 33–46. https://doi.org/10.1111/j.1540-6288.1999.tb00461.x
Chay, J. B., Chong, B. U., & Im, H. J. (2023). Dividend taxes and investment efficiency: Evidence from the 2003 U.S. personal taxation reform. Journal of Accounting and Economics, 75(1), 101154 1-15.
Chetty, R., & Saez, E. (2005). Dividend taxes and corporate behavior: Evidence from the 2003 dividend tax cut. Quarterly Journal of Economics, 120(3), 791–833. https://doi.org/10.1162/003355305774268174
Chetty, R., & Saez, E. (2006). The effects of the 2003 dividend tax cut on corporate behavior: Interpreting the evidence. American Economic Review, 96(2), 124–129.
Cho, H., & Yoon, S. (2021). Investment asset allocation in response to tax relief for mutual funds: The case of South Korea. Investment Management and Financial Innovations, 18(3), 347–358. https://doi.org/10.21511/imfi.18(3).2021.29
Choi, J. H., Kim, S., & Yang, D.-H. (2019). Do managers pay CSR for private motivation? A dividend tax cut case in Korea. Sustainability, 11(15), 4041. https://doi.org/10.3390/su11154041
Daniel, N. D., Denis, D. J., & Naveen, L. (2008). Do firms manage earnings to meet dividend thresholds? Journal of Accounting and Economics, 45(1), 2–26. https://doi.org/10.1016/j.jacceco.2007.11.002
De young, R., & Jang, K. Y. (2021). Dividend taxes and investment spending: Are banks different? Available at SSRN 3908194.
DeAngelo, H., DeAngelo, L., & Stulz, R. (2006). Dividend policy and the earned/contributed capital mix: A test of the life-cycle theory☆. Journal of Financial Economics, 81(2), 227–254. https://doi.org/10.1016/j.jfineco.2005.07.005
Desai, M. A., & Dharmapala, D. (2011). Dividend taxes and international portfolio choice. Review of Economics and Statistics, 93(1), 266–284. https://doi.org/10.1162/REST_a_00073
Deslandes, M., Landry, S., & Fortin, A. (2015). The effects of a tax dividend cut on payout policies: Canadian evidence. International Journal of Managerial Finance, 11(1), 2–22. https://doi.org/10.1108/IJMF-05-2014-0081
Dhaliwal, D., Krull, L., & Li, O. Z. (2007). Did the 2003 Tax Act reduce the cost of equity capital? Journal of Accounting and Economics, 43(1), 121–150. https://doi.org/10.1016/j.jacceco.2006.07.001
Donthu, N., Kumar, S., Mukherjee, D., Pandey, N., & Lim, W. M. (2021). How to conduct a bibliometric analysis: An overview and guidelines. Journal of Business Research, 133, 285–296. https://doi.org/10.1016/j.jbusres.2021.04.070
Dunbar, A., & Veliotis, S. (2012). The effect of taxes on conventional preferred stock: Evidence from the 2003 JGTRRA dividend tax reduction. Journal of the American Taxation Association, 34(1), 87–111. https://doi.org/10.2308/atax-10151
Ed-Dafali, S., Patel, R., & Iqbal, N. (2023). A bibliometric review of dividend policy literature. Research in International Business and Finance, 65(May), 101987. https://doi.org/10.1016/j.ribaf.2023.101987
Gao, Y., Cheng, X., Zhang, W., & Shen, H. (2024). Individual investors’ dividend taxes and managerial myopia. Finance Research Letters, 62, 105270. https://doi.org/10.1016/j.frl.2024.105270
Geeta Singh, Kaushik Bhattacharjee, & Srikanth Potharla. (2023). A literature survey and bibliometric analysis of the impact of controlling shareholders on dividend policy. Copernican Journal of Finance & Accounting, 11(4), 183–202. https://doi.org/10.12775/CJFA.2022.025
Guo, N., Sun, P., & Xiao, H. (2023). Influence of dividend tax policy tied to investment horizon on stock price stability: Evidence from the 2015 dividend tax reform in China. International Review of Finance, 23(3), 524–552. https://doi.org/10.1111/irfi.12408
Han, Y., Lu, Y. (Jacques), Xu, W., & Zhou, G. (2024). Mispricing and anomalies: An exogenous shock to short selling from JGTRRA. Journal of Empirical Finance, 78, 101537. https://doi.org/10.1016/j.jempfin.2024.101537
Hillmann, L. (2023). Dividend taxation and the ownership structure of private firms. Journal of Corporate Finance, 79. https://doi.org/10.1016/j.jcorpfin.2023.102380
Isakov, D., Pérignon, C., & Weisskopf, J. P. (2021). What if dividends were tax-exempt? Evidence from a natural experiment. Review of Financial Studies, 34(12), 5756–5795. https://doi.org/10.1093/rfs/hhab010
Jacob, M. (2021). Dividend taxes, employment, and firm productivity. Journal of Corporate Finance, 69. https://doi.org/10.1016/j.jcorpfin.2021.102040
Jacob, M., & Jacob, M. (2013). Taxation and the cash flow sensitivity of dividends. Economics Letters, 118(1), 186–188. https://doi.org/10.1016/j.econlet.2012.09.019
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4). https://doi.org/10.1016/0304-405X(76)90026-X
Jiang, X., Zhang, C., Jia, J., & Yu, S. (2018). Individual investors’ dividend taxes and corporate innovation: Evidence from China. China Journal of Accounting Studies, 6(3), 394–420. https://doi.org/10.1080/21697213.2018.1567123
Khan, A., Goodell, J. W., Hassan, M. K., & Paltrinieri, A. (2022). A bibliometric review of finance bibliometric papers. Finance Research Letters, 47(PA), 102520. https://doi.org/10.1016/j.frl.2021.102520
Kong, D., & Ji, M. (2024). Individual investors’ dividend tax reform and investment efficiency. International Review of Economics & Finance, 89, 1102–1119. https://doi.org/10.1016/j.iref.2023.08.018
Lee, D. (2017). Dividend taxation and household dividend portfolio decisions: Evidence from the U.S. jobs and growth tax relief reconciliation act of 2003. Applied Economics, 49(8), 723–737. https://doi.org/10.1080/00036846.2016.1205722
Lee, J. H., & Lee, Y. (2019). Dividend taxes and payout policy: Evidence from Korea’s 2015-2017 dividend tax cut. Journal of Economic Research, 24, 157–196.
Lee, S. C., & Park, S. S. (2023). Dividend taxes and corporate choice: Evidence from 2015 tax cut in South Korea. Pacific-Basin Finance Journal, 79, 101983 1-18. https://doi.org/10.1016/j.pacfin.2023.101983
Lee, S. Y., & Hong, W. H. (2020). Does tax really matter for corporate payout policy: Evidence from a policy experiment in South Korea. Pacific Basin Finance Journal, 62, 101353 1-15. https://doi.org/10.1016/j.pacfin.2020.101353
Lee, Y. K. (2022). The effect of ownership structure on corporate payout policy and performance: Evidence from Korea’s exogenous dividends tax shock. Pacific-Basin Finance Journal, 73, 101763. https://doi.org/10.1016/j.pacfin.2022.101763
Li, O. Z., Liu, H., Ni, C., & Ye, K. (2017). Individual investors’ dividend taxes and corporate payout policies. Journal of Financial and Quantitative Analysis, 52(3), 963–990. https://doi.org/10.1017/S0022109017000199
Liu, H. (2021). Does strengthening large shareholders’ cash flow rights reduce their expropriation motivation? Evidence from China’s dividend tax reforms. China Journal of Accounting Research, 14(4), 100206. https://doi.org/10.1016/j.cjar.2021.100206
Liu, H., Zhang, Y., & Gao, S. (2015). Dividend tax and capital structure: Evidence from China. China Journal of Accounting Studies, 3(3), 254–273. https://doi.org/10.1080/21697213.2015.1067854
Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. The Journal of Business, 34(4), 411–433.
Narang, N., Gupta, S., & Tripathy, N. (2023). A bibliometric analysis of governance mechanisms in dividend decisions: An overview and emerging trends. International Journal of Disclosure and Governance, 20(4), 410–430. https://doi.org/10.1057/s41310-023-00184-6
OECD. (2006). Tax policy, policy framework for investment: A review of good practices. OECD.
Park, J., & Kim, M. (2010). Dividend yields and stock returns: Evidence from the Korean stock market*. Asia-Pacific Journal of Financial Studies, 39(6), 736–751. https://doi.org/10.1111/j.2041-6156.2010.01028.x
Peretto, P. F. (2011). The growth and welfare effects of deficit-financed dividend tax cuts. Journal of Money, Credit and Banking, 43(5), 835–869. https://doi.org/10.1111/j.1538-4616.2011.00399.x
Pinto, G., Rastogi, S., Kadam, S., & Sharma, A. (2019). Bibliometric study on dividend policy. Qualitative Research in Financial Markets, 12(1), 72–95. https://doi.org/10.1108/QRFM-11-2018-0118
Poterba, J. M., & Summers, L. H. (1984). New evidence that taxes affect the valuation of dividends. The Journal of Finance, 39(5), 1397–1415. https://doi.org/10.1111/j.1540-6261.1984.tb04914.x
Trepelkov, A., & Verdi, M. (2018). Design and assessment of tax incentives in developing countries. United Nation.
Yagan, D. (2015). Capital tax reform and the real economy: The effects of the 2003 dividend tax cut. American Economic Review, 105(12), 3531–3563. https://doi.org/10.1257/aer.20130098
Yu, X., Wang, Y., Chen, Y., & Wang, G. (2021). Dividend payouts and catering to demands: Evidence from a dividend tax reform. International Review of Financial Analysis, 77(101841), 1–14. https://doi.org/10.1016/j.irfa.2021.101841
Zagonel, T., Terra, P. R. S., & Pasuch, D. F. (2018). Taxation, corporate governance and dividend policy in Brazil. RAUSP Management Journal, 53(3), 304–323. https://doi.org/10.1108/RAUSP-04-2018-006