John Graham
D. Richard Mead Jr. Family Professor of Finance, Fuqua School of Business, Duke University, USA
Tax Shelters and Corporate Debt Policy
John R. Graham Alan L. Abstract: We gather a unique sample of 44 tax shelter cases to investigate the magnitude of tax shelter activity and whether participating in a shelter is related to corporate debt policy. The average deduction produced by the shelters in our sample is very large, equaling approximately nine percent of asset [...]
Using tax return data to simulate corporate marginal tax rates
John R. Graham Lillian F. Mills Abstract We document that simulated corporate marginal tax rates based on financial statement data (Shevlin 1990 and Graham 1996a) are highly correlated with simulated rates based on corporate tax return data. We provide algorithms that can be used to estimate the book or tax simulated rates when they [...]
Do Firms Hedge in Response to Tax Incentives?
JOHN R. GRAHAM DANIEL A. ROGERS* 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 [...]
