Gains to Australian Shareholders from Perturbations in Corporate Financial Policy.

Benge (1997) examined the effects of the Australian full imputation company tax system and capital gains tax provisions on dividend policy and financial policy for an optimizing firm. However, there has been no attempt to quantify the financial policy biases that were identified in the earlier paper. The aim of this paper is to do so. In addition the paper examines the effects on financial policy biases of possible reforms being considered by the Ralph Committee. Finally, the paper provides a simplified method of exposing financial policy biases.