| Summary: | 碩士 === 國立交通大學 === 管理學院財務金融學程 === 106 === Integrated Income Tax System has been implemented in Taiwan since Jan. 1st in 1998. The purpose for this system is to eliminate double taxation, alleviate the burden and enhance investment intention. The countermeasure“ Undistributed earnings tax“ has been widely discussed. The business owner consider that imposing the tax on undistributed surplus earnings may reduce the accumulation of internal funds which could influence company growth.
This thesis is to study the influence of tax on undistributed surplus earnings. The study first assumes the company may increase dividend payout ratio to avoid tax. Second, classify the corporation by analyzing the correlation among dividend payout ratio, P/B ratio, revenue growth rate and total asset growth rate. The result indicates the higher dividend payout ratio, the higher growth rate and vice versa. This illustrates that imposing the tax on undistributed surplus earnings won’t influence company growth.
The value created by enterprise comes from investing activities and operating activities. The fund not only comes from accumulation of internal fund but also external financing. Financing activities is to allocate value. Inference from this, imposing the tax on undistributed surplus earnings won’t influence company growth.
Keywords：(Integrated Income Tax System, undistributed surplus earnings, company growth, dividend payout ratio, Growth index)
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