| Summary: | 碩士 === 國立虎尾科技大學 === 企業管理系經營管理碩士在職專班 === 105 === This study aims to examine the impact of this amendment on corporate dividend policy. Based on 6119 firm-year observations from 2012 to 2015, the empirical results show that corporate tax deduction ratio in 2013（2014） positively（negatively） affects the changes in cash dividend payouts. Besides, the degree of cash dividend payouts increase（decrease）in 2013（2014）for high tax deduction ratio subgroup is greater than that for low tax deduction ratio subgroup. As the implementation of such an amendment does increase shareholders’ tax burden, the evidence suggests that firms appear to adjust their dividend policies to compensate shareholders. Given that firms’ earnings and dividends of 2014 are announced and declared in 2015 and it was the first year for implementation of halved shareholders’ imputation tax credit, firms are found to reduce their dividends to lower shareholders’ tax load. By contrast, firms are found to increase their dividend payments of 2013, which was declared in 2014 and it was the last year for shareholders to enjoy the whole amount of imputation tax credit.
In addition, this study further explores whether firms repurchase their outstanding shares to replace their cash dividend payments. However, we find no supporting evidence of increased stock repurchases following 2015. Presumably the strict regulations and monitoring by the authorities requiring firms to repurchase shares explicitly have deadened the incentives of using share repurchases to replace dividend payouts by firms for saving shareholders tax payments.
|
|---|
