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on Accounting and Auditing |
| By: | Borja Larrain; Motohiro Yogo |
| Abstract: | Movements in the value of corporate assets are justified by changes in expected future cash flow. The appropriate measure of cash flow for valuing assets is net payout, which is the sum of dividends, interest, and net repurchases of equity and debt. When discount rates are low and equity issuance is high, expected cash-flow growth is low because firms repurchase debt to offset equity issuance. A variance decomposition of the ratio of net payout reveals little transitory variation in discount rates that is not offset by common variation with expected cashflow growth. |
| Keywords: | Assets (Accounting) - Prices ; Cash flow |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:05-18&r=acc |
| By: | Matías Braun; Borja Larrain |
| Abstract: | We show that the introduction of a new asset affects the prices of previously existing assets in a market. Using data from 254 IPOs in emerging markets, we find that stocks in industries that covary highly with the industry of the IPO experience a larger decline in prices relative to other stocks during the month of the IPO. The effects are stronger when the IPO is issued in a market that is less integrated internationally, and when the IPO is big. The evidence supports the idea that the composition of asset supply affects the cross-section of stock prices. |
| Keywords: | Assets (Accounting) - Prices ; Going public (Securities) |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:06-4&r=acc |
| By: | D. Beggs; C.L. Skeels |
| Abstract: | Since 1986 dividend imputation has influenced the ex-dividend day behaviour of Australian share prices. Between 1 April 1986 and 30 May 2004 the Government of the day introduced six major legislative amendments intent on improving the efficiency of the dividend imputation system. This paper explores the impact of dividend imputation, in its various forms, on ex-dividend share price adjustments. We find that only the most recent tax change, which provided full income rebates for unused franking credits, appears to have caused the market to put a statistically significant value on franking credits. |
| Keywords: | Dividend imputation, cash dividends, franking credits, drop-off ratio, tax legislation, structural breaks. |
| JEL: | G12 G14 G18 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:mlb:wpaper:947&r=acc |
| By: | Patrick Van Roy (National Bank of Belgium, Department of International Cooperation and Financial Stability) |
| Abstract: | This paper analyses the effect of soliciting a rating on the rating outcome of banks. Using a sample of Asian banks rated by Fitch Ratings ("Fitch"), I find evidence that unsolicited ratings tend to be lower than solicited ones, after accounting for differences in observed bank characteristics. This downward bias does not seem to be explained by the fact that betterquality banks selfselect into the solicited group. Rather, unsolicited ratings appear to be lower because they are based on public information. As a result, they tend to be more conservative than solicited ratings, which incorporate both public and nonpublic information. |
| Keywords: | Credit rating agencies, Unsolicited ratings, Selfselection, Public disclosure, Accounting transparency |
| JEL: | G15 G18 G21 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:200603-1&r=acc |
| By: | Christina Elschner; Robert Schwager |
| Abstract: | A model is presented for simulating the tax burden on highly skilled manpower. The effective average tax rate, defined as the relative wedge between employment costs and disposable income, is computed. Income and payroll taxes and social security contributions not yielding an equivalent benefit are taken into account. The compensation package consists of cash payments and old-age provision. To integrate retirement benefits and their tax treatment, an intertemporal approach is used. The results indicate a wide dispersion of tax rates across Europe and the US. Slovakia, Switzerland and the US tax highly skilled manpower low. Scandinavian countries, Belgium and Slovenia turn out to be high tax countries. |
| Keywords: | income tax, highly skilled labour, effective tax burden, pensions |
| JEL: | H24 H21 H55 |
| Date: | 2006–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:got:cegedp:50&r=acc |
| By: | Carolina Fugazza (Center for Research on Pensions and Welfare Policies, Turin); Federica Teppa (DCenter for Research on Pensions and Welfare Policies, Turin) |
| Abstract: | The Italian TFR ("Trattamento di fine Rapporto") is a statutory payment made by firms to staff on separation. Recent reforms of the national pension system are based on voluntary transfers of the TFR to a supplementary pension fund. The purpose of this paper is to provide a probabilistic distribution of how workers currently make use of their severance payment, on the basis of their demographic and occupational characteristics. We find that the TFR mainly acts both as a buffer stock and as an income source upon retirement. |
| Keywords: | Severance pay, retirement saving, pension schemes |
| JEL: | D91 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:crp:wpaper:38&r=acc |
| By: | Teresa da Silva Lopes (Saïd Business School, University of Oxford) |
| Abstract: | This paper considers aspects of the evolution of ownership and control in global industries from 1960. The existing literature usually uses the largest firms in industrialized countries, to provide generalizations about national systems of corporate governance. In practice, this characterization is far from being comprehensive. For example, global industries which are not dominant in countries’ economies – such as alcoholic beverages – are overlooked. Including such overlooked cases, this study suggests that there is a broader range of combinations of ownership and control of firms than is usually considered. Regardless of national systems of corporate governance, family ownership may remain very important in some industries. Industry-specific factors, such as brands and marketing knowledge in alcoholic beverages, help explain why the predominant ownership and control structures of global firms are distinct from those that characterize their countries of origin. |
| Date: | 2006–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:nuf:esohwp:_053&r=acc |
| By: | Marie Musard-Gies (LEO - Laboratoire d'économie d'Orleans - http://www.univ-orleans.fr/DEG/LEO - [CNRS : UMR6221] - [Université d'Orléans] - []) |
| Abstract: | Dans ce papier, nous cherchons à évaluer si il est possible pour une banque centrale de dévoiler ses préférences, et plus précisément le poids qu'elle accorde à la stabilisation de l'inflation et de l'output gap dans sa fonction objectif. Nous considérons que la banque centrale peut dévoiler de l'information sur ses préférences de deux manières : tout d'abord, explicitement, via sa politique de communication, mais aussi, implicitement, via ses décisions de politique monétaire. Nous étudions alors, dans un jeu dynamique, le cas de la transparence sur les prévisions de la banque centrale comme substitut de la transparence sur les préférences lorsque le secteur privé est capable de réviser son estimation initiale des préférences de la banque centrale (apprentissage du secteur privé). |
| Keywords: | Transparence ; préférences de la banque centrale |
| Date: | 2006–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00009596_v1&r=acc |