Do Firms Hedge in Response to Tax Incentives ?  

Oleh:

Graham, John R. ; Rogers, Daniel A.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Journal of Finance (EBSCO) vol. 57 no. 2 (2002), page 815-840.
Topik: incentives; studies; hedging; tax incentives; corporate tax planning; statistical analysis
Fulltext: p 815.pdf (121.86KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ88.5 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

There are two tax incentives for corporations to hedge : increase debt capacity and itnerest tax deductions, and to reduce expected tax liability if the tax function is convex. We test whether these incentives affect the extent of corporate hedging with derivatives. Using an explicit measure of tax function convexity, we find no evidence that firms hedge in response to tax convexity. Our analysis does, however indicate that firms hedge to increase debt capacity, with increased tax benefits averaging 1,1 percent of firm value. Our results also indicate that firms hedhe because of expected financial distress costs and firm size.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali