Using a new bilateral international tax database, we investigate the effects of dividend taxes on foreign equity portfolio holdings. Extending a model of capital market equilibrium with dividend taxation to an international setting, we provide intuition for a new, seemingly counter-intuitive...

We exploit changes in a country's integration of corporate and shareholder taxes to identify the effect of investor-level taxes on costly corporate tax avoidance. Specifically, we rely on European countries eliminating imputation systems in different years in response to supranational judicial...