INCENTIVIZED DEBENTURES AND APPROPRIATION OF TAX BENEFITS.

This paper sought to analyze the possible disparity in the appropriation of tax benefits granted to incentivized debentures (in the form of Law No. 12,431/2011) via price mechanism. According to economic theory, markets under normal operating conditions do not present room for arbitrage, and assets endowed with the same risk conditions should not present incompatible values. Therefore, it is expected that the spread exhibited by incentivized debentures in the secondary market is equivalent to that of regular debentures when adjusted by the respective tax and risk factors. Thus, a methodology was proposed for evaluating the parameters that potentially define the remuneration of debentures, in order to isolate the effect of this tax incentive to determine its impact on price formation. The results pointed to the statistical irrelevance of this parameter, assuring market conformity to the no-arbitrage theory and preventing the rejection of the hypothesis of effective appropriation of the tax benefit by the debenture issuer. [ABSTRACT FROM AUTHOR]