Purpose – The purpose of this paper is to examine whether the significant dividend tax rate reduction for individual investors in Canada in 2006 affected firms’ payout policies. Design/methodology/approach – Using regression models, the authors examine the impact of the 2006 dividend tax...

Purpose –The purpose of this paper is to examine whether the significant dividend tax rate reduction for individual investors in Canada in 2006 affected firms’ payout policies. Design/methodology/approach -Using regression models, the authors examine the impact of the 2006 dividend tax cut...