Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/150210
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dc.contributor.authorKang, Minwooken_US
dc.contributor.authorYe, Sandy Leien_US
dc.date.accessioned2021-06-09T06:38:44Z-
dc.date.available2021-06-09T06:38:44Z-
dc.date.issued2019-
dc.identifier.citationKang, M. & Ye, S. L. (2019). Present bias and corporate tax policies. Journal of Public Economic Theory, 21(2), 265-290. https://dx.doi.org/10.1111/jpet.12349en_US
dc.identifier.issn1097-3923en_US
dc.identifier.other0000-0003-2369-7894-
dc.identifier.urihttps://hdl.handle.net/10356/150210-
dc.description.abstractTwo major forms of corporate tax policies are dividend and profits taxes. Based on conventional corporate theory, these tax policies distort the firm's investment decisions and decrease firm value. However, this paper shows that under hyperbolically discounted preferences, dividend taxation is capable of boosting firm investment in a value-enhancing way. The hyperbolically discounted present value can be interpreted as reflecting irrational myopic preferences or, as we demonstrate, reduced-form implications of corporate agency issues. Both cases result in an underinvestment problem for the firm, but the firm valuation criteria differ. The optimal taxation issue is discussed under a Cobb–Douglas production function setting.en_US
dc.language.isoenen_US
dc.relation.ispartofJournal of Public Economic Theoryen_US
dc.rights© 2019 Wiley Periodicals, Inc. All rights reserved.en_US
dc.subjectSocial sciences::Economic theoryen_US
dc.titlePresent bias and corporate tax policiesen_US
dc.typeJournal Articleen
dc.contributor.schoolSchool of Social Sciencesen_US
dc.identifier.doi10.1111/jpet.12349-
dc.identifier.scopus2-s2.0-85059539244-
dc.identifier.issue2en_US
dc.identifier.volume21en_US
dc.identifier.spage265en_US
dc.identifier.epage290en_US
dc.subject.keywordsTime Preferenceen_US
dc.subject.keywordsIntertemporal Choiceen_US
item.fulltextNo Fulltext-
item.grantfulltextnone-
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