A 2022 study in the American Economic Review found that a substantial increase in dividend tax rates in France led to reduced dividend payments by firms and greater re-investment of profits back into the firms. The study also found that the dividend taxes did not contribute to a misallocation of capital, but may instead have reduced a capital misallocation. The study was retracted after several inconsistencies in the data were pointed out by other researchers, some arguing that the alterations affected the results of the paper. The authors disputed that the results would have been altered.
A 2022 study in the Ame,rican Economic Review found that a substantial increase in dividend tax rates in France led to reduced dividend payments by firms and greater re-investment of profits back into the firms. The study also found that the dividend taxes did not contribute to a misallocation of capital, but may instead have reduced a capital misallocation. The study was retracted after several inconsistencies in the data were pointed out by other researchers some arguing that the alterations affected the results of the paper. The authors disputed that the results would have been altered.