Are financial derivatives related to intra‐entities' tax aggressiveness? UK evidence
研究了套期保值与非套期保值的金融衍生品对跨国公司内部税收激进程度的影响，发现非套期保值衍生品是税收激进的重要驱动因素，而良好的治理质量能缓解这一问题。
Abstract This study investigates the effect of hedged versus nonhedged financial derivative instruments on the intra‐entities' tax aggressiveness. Our findings provide evidence that multinational enterprises manage derivatives instruments to avoid their tax expenses aggressively. Specifically, nonhedged derivatives are an excellent determinant of the tax aggressiveness practices of corporate groups. Besides, this study speaks to the central role of governance quality in mitigating this aspect of tax aggressiveness and provides practical guidance to tax authorities and regulators for establishing new policies for governing financial derivative instruments and preventing tax aggressiveness from negatively affecting firms and society.