1. In Hong Kong, the shareholders of corporations are much more concentrated than in the US. In other words, a small number of large investors holds a large amount of stock [Chemmanur et al., 2010]. Discuss the efficiency consequences of this difference on the corporate tax treatment of dividends versus retained earnings. Unlike in the US, in Hong Kong dividend earnings and capital gains are not taxable. Based on this information, in which country would you expect a larger correlation between corporation profits and dividend payouts