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The Incentives to Hedge

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Author Info
Graham, J.R.
Smith, Jr.C.W.
Abstract

We quantify the tax savibgs from hedging by modeling major provisions of the tax code. Using data from COMPUSTAT, we simulate likely tax savings from reducing the volatility of taxable income.

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Publisher Info
Paper provided by Rochester, Business - Financial Research and Policy Studies in its series Papers with number 96-03.

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Length: 12 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:robufr:96-03

Contact details of provider:
Postal: UNIVERSITY OF ROCHESTER, WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, Bradley Policy Research Center, ROCHESTER NEW YORK 14627 U.S.A.
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Web page: http://www.simon.rochester.edu/
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Related research
Keywords: SAVINGS ; TAXES;

Find related papers by JEL classification:
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

Cited by:
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  1. Ammon, Norbert, 1998. "Why Hedge? - A Critical Review of Theory and Empirical Evidence -," ZEW Discussion Papers 98-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. José Rodrigues de Jesús & Luís Miranda da Rocha & Rui Couto Viana, 2001. "Avaliação de Pequenas e Médias Empresas e Gestão de Risco," FEP Working Papers 110, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  3. Franklin Allen & Anthony M. Santomero, 1996. "The Theory of Financial Intermediation," Center for Financial Institutions Working Papers 96-32, Wharton School Center for Financial Institutions, University of Pennsylvania. [Downloadable!]
    Other versions:
  4. David Downie & Ed Nosal, 2001. "A strategic approach to hedging and contracting," Working Paper 0119, Federal Reserve Bank of Cleveland. [Downloadable!]
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