Do Firms Hedge in Response to Tax Incentives?
检验税收激励是否影响企业使用衍生品对冲，发现企业并非因税收凸性而对冲，而是为增加债务能力和利息税盾，平均带来1.1%的企业价值提升。
ABSTRACT There are two tax incentives for corporations to hedge: to increase debt capacity and interest 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 hedge because of expected financial distress costs and firm size.