This table repost the results of regression analysis relating credit spreads and dividend yields controlling for possible endogeneity. In the first-stage regression, dividend payouts (dependent variable) are regressed on the tax cut dummy (independent variable) and the control variables. In the second stage, dividend payouts are replaced in our original model by the “predicted” payouts (independent variable) from the first stage to estimate causal effect of dividends on credit spreads. The sample only includes non-financial firms (SIC 6000-6999 are excluded) that issued a non-convertible, public bond during the period 1970-2005 from SDC database for which corresponding accounting information form COMPUATAT can be found. The interest rates are from Federal Reserve Board of Governors database. Out dependent variable, credit spread is defined as the difference between newly issued bond yield and the corresponding Treasury bond yield. The corresponding bond yield is computed using linear interpolation of constant maturity bonds yields. The dependent variable is then the credit spread of each issue.