Wahl, Jack E.; Broll, Udo - In: FinanzArchiv: Public Finance Analysis 63 (2007) 4, pp. 583-590
Using a two-moment decision model, this paper analyzes corporate hedging behavior in the presence of differential … increase and, therefore, the incentive for hedging decreases. We demonstrate that pure hedging is differently affected by … taxation from the way speculative hedging is. Analyzing the tax sensitivity of the corporate hedge shows that ahigher risk in …