Jacob, Martin; Södersten, Jan - 2012 - This version: September 10, 2012
This article reconsiders the role of dividend taxation and its effect on the cost of capital of small firms. Using a … lead to the counter-intuitive result of increasing cost of capital for small firms. For different small open economies, we …-intuitive result. Our results suggest that mitigating payout taxes in small open economies can have ambiguous effects on the cost of …