Dividends and Profits: Some Unsubtle Foreign Influences
AbstractAmerican corporations earn a significant share of their profits from foreign sources, out of which they appear to pay dividends at rates that are three times higher than their payout rates from domestic profits. Why firms do so is unclear, although this behavior is consistent with the use of dividends to signal profitability. This payout behavior implies that a significant part of the U.S. tax revenue generated by the foreign profits of U.S. corporations arises through the taxation of dividends received by individuals and that the cost of capital may be higher for foreign than for domestic operations. Copyright 1996 by American Finance Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Finance Association in its journal Journal of Finance.
Volume (Year): 51 (1996)
Issue (Month): 2 (June)
Other versions of this item:
- Hines Jr., J.R., 1991. "Dividends And Profits: Some Unsubtle Foreign Influences," Papers 77, Princeton, Woodrow Wilson School - John M. Olin Program.
- James R. Hines Jr., 1996. "Dividends and Profits: Some Unsubtle Foreign Influences," NBER Working Papers 3730, National Bureau of Economic Research, Inc.
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jan Bena & Jan Hanousek, 2008.
"Rent Extraction by Large Shareholders: Evidence Using Dividend Policy in the Czech Republic,"
Czech Journal of Economics and Finance (Finance a uver),
Charles University Prague, Faculty of Social Sciences, vol. 58(03-04), pages 106-130, May.
- Jan Bena & Jan Hanousek, 2006. "Rent Extraction by Large Shareholders: Evidence Using Dividend Policy in the Czech Republic," CERGE-EI Working Papers wp291, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Jan Hanousek & Jan Bena, 2006. "Rent Extraction by Large Shareholders: Evidence Using Dividend Policy in the Czech Republic," FMG Discussion Papers dp556, Financial Markets Group.
- Gordon, Roger H. & Hines, James Jr, 2002.
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 28, pages 1935-1995
- Stephanie E. Curcuru & Charles P. Thomas, 2012. "The return on U.S. direct investment at home and abroad," International Finance Discussion Papers 1057, Board of Governors of the Federal Reserve System (U.S.).
- Margaret Lamb & Andrew Lymer, 1999. "Taxation research in an accounting context: future prospects and interdisciplinary perspectives," European Accounting Review, Taylor and Francis Journals, vol. 8(4), pages 749-776.
- Stephanie E. Curcuru & Charles P. Thomas, 2013. "The Return on U.S. Direct Investment at Home and Abroad," NBER Chapters, in: Wealth, Financial Intermediation and the Real Economy National Bureau of Economic Research, Inc.
- Weichenrieder, Alfons J., 1998. "Foreign profits and domestic investment," Journal of Public Economics, Elsevier, vol. 69(3), pages 451-463, September.
- Roger H. Gordon & Joosung Jun & Joel Slemrod, 1993.
"Taxes and the Form of Ownership of Foreign Corporate Equity,"
in: Studies in International Taxation, pages 13-46
National Bureau of Economic Research, Inc.
- Gordon, R.H. & Jun, J., 1991. "Taxes and the Form of Ownership of Foreign Corporate Equity," Working Papers 290, Research Seminar in International Economics, University of Michigan.
- Roger H Gordon & Joosung Jun, 1993. "Taxes and the Form of Ownership of Foreign Corporate Equity," CEPR Financial Markets Paper 0029, European Science Foundation Network in Financial Markets, c/o C.E.P.R, 77 Bastwick Street, London EC1V 3PZ.
- Gordon, R.H. & Jun, J., 1991. "Taxes and the Form of Ownership of Foreign Corporate Equity," Papers 652, Yale - Economic Growth Center.
- Roger H. Gordon & Joosung Jun, 1992. "Taxes and the Form of Ownership of Foreign Corporate Equity," NBER Working Papers 4159, National Bureau of Economic Research, Inc.
- Owen Lamont, 1998.
"Earnings and Expected Returns,"
Journal of Finance,
American Finance Association, vol. 53(5), pages 1563-1587, October.
- Annette Alstadsæter & Erik Fjaerli, 2009. "Neutral Taxation of Shareholder Income? Corporate Responses to an Announced Dividend Tax," CESifo Working Paper Series 2530, CESifo Group Munich.
- Bodnar, Gordon M. & Weintrop, Joseph, 1997.
"The valuation of the foreign income of US multinational firms: a growth opportunities perspective,"
Journal of Accounting and Economics,
Elsevier, vol. 24(1), pages 69-97, December.
- Gordon M. Bodnar & Joseph Weintrop, 1997. "The Valuation of the Foreign Income of U.S. Multinational Firms: A Growth Opportunities Perspective," NBER Working Papers 5904, National Bureau of Economic Research, Inc.
- James R. Hines, Jr., 1996. "Tax Policy and the Activities of Multinational Corporations," NBER Working Papers 5589, National Bureau of Economic Research, Inc.
- John W. Budd & Matthew J.Slaughter, 2000. "Are Profits Shared Across Borders? Evidence on International Rent Sharing," NBER Working Papers 8014, National Bureau of Economic Research, Inc.
- Raj Chetty & Emmanuel Saez, 2007. "An Agency Theory of Dividend Taxation," NBER Working Papers 13538, National Bureau of Economic Research, Inc.
- Mihir A. Desai & C. Fritz Foley & James R. Hines Jr., 2002. "Dividend Policy inside the Firm," NBER Working Papers 8698, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.