Zhenhua Hu

Date of Award


Degree Type


Degree Name

Doctor of Philosophy (PhD)


Public Management and Policy

First Advisor

Dr. Gregory B. Lewis - Chair

Second Advisor

Dr. Bruce A. Seaman

Third Advisor

Dr. Douglas S. Noonan

Fourth Advisor

Dr. Michael J. Rushton

Fifth Advisor

Dr. Sally Wallace


Corporate income taxation has a profound impact on economic behavior in the United States. This dissertation focuses on two aspects: the impact of dividend taxation on investment and the impact of corporate income tax exemption on nonprofit organizations activity. The first essay compares dividend payout ratios of C and S corporations to test the validity of the traditional and the new views on dividend taxation. Average corporate income tax rate is used as an instrumental variable. The results support the traditional view. The second essay focuses on whether the exemption of nonprofit organizations from the corporate income tax affects the competition between for-profit and nonprofit hospitals. Time series and panel data analysis show that tax subsidies to nonprofit organizations have a positive impact on nonprofit hospitals’ market share.