The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms?
Main Author: | |
---|---|
Publication Date: | 2009 |
Other Authors: | , |
Format: | Article |
Language: | eng por |
Source: | BBR. Brazilian Business Review (English edition. Online) |
Download full: | http://www.bbronline.com.br/index.php/bbr/article/view/400 |
Summary: | This paper shows that the increase in the proportion of Brazilian publicly traded firms providing cash payouts between 1990 and 2003 was due to an increase in the propensity to pay and not to changes in the companies’ characteristics. Unlike in the United States, the current Brazilian tax structure favors cash payouts over capital gains. The tax structure also makes a distinction between dividends and interest on stockholders’ equity. The latter category has become the main way of cash distribution. Big firms with high profitability and low leverage are the most likely to make cash profit distributions. |
id |
FBS-1_f8aefe9a942851f7db868b7a09aee144 |
---|---|
oai_identifier_str |
oai:ojs.pkp.sfu.ca:article/400 |
network_acronym_str |
FBS-1 |
network_name_str |
BBR. Brazilian Business Review (English edition. Online) |
repository_id_str |
|
spelling |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms?O Crescimento da Remuneração Direta aos Acionistas no Brasil: Economia de Impostos ou Mudança de Características das Firmas?dividendsinterest on stockholders’ equitytax structurepayout policydividendosjuros sobre o capital própriotributospolítica de remuneraçãoThis paper shows that the increase in the proportion of Brazilian publicly traded firms providing cash payouts between 1990 and 2003 was due to an increase in the propensity to pay and not to changes in the companies’ characteristics. Unlike in the United States, the current Brazilian tax structure favors cash payouts over capital gains. The tax structure also makes a distinction between dividends and interest on stockholders’ equity. The latter category has become the main way of cash distribution. Big firms with high profitability and low leverage are the most likely to make cash profit distributions.Este trabalho demonstra que o aumento na distribuição de proventos em dinheiro pelas companhias brasileiras deveu-se a um crescimento na propensão a remunerar os acionistas e não às mudanças de características das empresas. Diferentemente dos EUA, a atual estrutura tributária brasileira favorece a remuneração direta, tornando as empresas mais propensas a tal. Analisando separadamente dividendos e juros sobre o capital próprio, observa-se que os juros sobre o capital próprio tornaram-se o principal mecanismo de distribuição direta. As firmas mais prováveis de remunerar diretamente caracterizam-se como as mais lucrativas, maiores e menos endividadas.FUCAPE Business Shool2009-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/40010.15728/bbr.2009.6.1.4Brazilian Business Review; Vol. 6 No. 1 (2009): January to April 2009; 59-77Brazilian Business Review; v. 6 n. 1 (2009): Janeiro a Abril de 2009; 59-771808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/400/614http://www.bbronline.com.br/index.php/bbr/article/view/400/615Brito, Ricardo D.Lima, Mônica R.Silva, Júlio C.info:eu-repo/semantics/openAccess2018-11-06T19:58:19Zoai:ojs.pkp.sfu.ca:article/400Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-11-06T19:58:19BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false |
dc.title.none.fl_str_mv |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? O Crescimento da Remuneração Direta aos Acionistas no Brasil: Economia de Impostos ou Mudança de Características das Firmas? |
title |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? |
spellingShingle |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? Brito, Ricardo D. dividends interest on stockholders’ equity tax structure payout policy dividendos juros sobre o capital próprio tributos política de remuneração |
title_short |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? |
title_full |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? |
title_fullStr |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? |
title_full_unstemmed |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? |
title_sort |
The Growth of Direct Payouts to Shareholders in Brazil: Tax Savings or Changing Characteristics of Firms? |
author |
Brito, Ricardo D. |
author_facet |
Brito, Ricardo D. Lima, Mônica R. Silva, Júlio C. |
author_role |
author |
author2 |
Lima, Mônica R. Silva, Júlio C. |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Brito, Ricardo D. Lima, Mônica R. Silva, Júlio C. |
dc.subject.por.fl_str_mv |
dividends interest on stockholders’ equity tax structure payout policy dividendos juros sobre o capital próprio tributos política de remuneração |
topic |
dividends interest on stockholders’ equity tax structure payout policy dividendos juros sobre o capital próprio tributos política de remuneração |
description |
This paper shows that the increase in the proportion of Brazilian publicly traded firms providing cash payouts between 1990 and 2003 was due to an increase in the propensity to pay and not to changes in the companies’ characteristics. Unlike in the United States, the current Brazilian tax structure favors cash payouts over capital gains. The tax structure also makes a distinction between dividends and interest on stockholders’ equity. The latter category has become the main way of cash distribution. Big firms with high profitability and low leverage are the most likely to make cash profit distributions. |
publishDate |
2009 |
dc.date.none.fl_str_mv |
2009-01-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artigo revisado pelos pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/400 10.15728/bbr.2009.6.1.4 |
url |
http://www.bbronline.com.br/index.php/bbr/article/view/400 |
identifier_str_mv |
10.15728/bbr.2009.6.1.4 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/400/614 http://www.bbronline.com.br/index.php/bbr/article/view/400/615 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FUCAPE Business Shool |
publisher.none.fl_str_mv |
FUCAPE Business Shool |
dc.source.none.fl_str_mv |
Brazilian Business Review; Vol. 6 No. 1 (2009): January to April 2009; 59-77 Brazilian Business Review; v. 6 n. 1 (2009): Janeiro a Abril de 2009; 59-77 1808-2386 1807-734X reponame:BBR. Brazilian Business Review (English edition. Online) instname:Fucape Business School (FBS) instacron:FBS |
instname_str |
Fucape Business School (FBS) |
instacron_str |
FBS |
institution |
FBS |
reponame_str |
BBR. Brazilian Business Review (English edition. Online) |
collection |
BBR. Brazilian Business Review (English edition. Online) |
repository.name.fl_str_mv |
BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS) |
repository.mail.fl_str_mv |
|| bbronline@bbronline.com.br |
_version_ |
1754732238590705664 |