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NTJ | National Tax Journal

This study explores two effects of employee stock options on tax incentives to issue debt. The deduction of option from taxable income creates a non-debt tax shield, reducing the incentive to issue debt. In contrast, the grant of options also creates a demand for hedging unexpected stock price increases, and firms have a tax-based incentive to hedge by borrowing to repurchase shares.

Twenty-First Securities Corporation - Strategies For The Professional Investor

Amromin, Gene and Liang, Nellie , Hedging Employee Stock Options, Corporate Taxes, and Debt , National Tax Journal , Citation Amromin, Gene and Liang, Nellie , Hedging Employee Stock Options, Corporate Taxes, and Debt , National Tax Journal , Also in this issue: Issues in Analyzing the Macroeconomic Effects of Tax Policy Economic Effects of Sustained Budget Deficits Evaluating International Tax Reform Royalties for Intracompany Sales of Fancy Trademarked Cheese Hedging Employee Stock Options, Corporate Taxes, and Debt Piling on Problems: How Federal Policies Affect State Fiscal Conditions The California Budget Crisis: Factors Leading to the Current Budget Deficit and a Discussion of Certain Proposed Solutions Changing Red to Black: Deficit Closing Alchemy Public Funds and Private Capital Markets: The Investment Practices and Performance of State and Local Pension Funds What Explains Early Withdrawals From Retirement Accounts?

Evidence From a Panel of Taxpayers Is the Tax Expenditure Concept Still Relevant? The Effect of Dividend Tax Relief on Investment Incentives Effects of Dividend Relief on Economic Growth, the Stock Market, and Corporate Tax Preferences Estimating the Compliance Cost of the U.

Simplifying the Definition of a Child.