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on Accounting and Auditing |
| By: | Waymond Rodgers; Susana Gago; Mercedes Barrachina Palanca |
| Abstract: | Trust among executives and managers may reduce budgetary slack due to decreased inefficiencies. Trust relationships are studied as a prerequisite to influence budget setting. One hundred and twenty internal auditors observed different relations between the executive and managers. Results demonstrated that trust environments can reduce budgetary slack. Internal auditors are able to provide better services when “trust issues” between middle and top managers are recognized and incorporated as part of their investigated procedures. |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wbrepe:wb064415&r=acc |
| By: | Waymond Rodgers; Susana Gago |
| Abstract: | Moral issues greet the business community constantly, confronting us with problems on handling accounting rules that can determine a company’s future. We are bombarded with news regarding fraudulent activities in companies that mishandled accounting rules leading to undermining the confidence of customers, employees, suppliers, shareholders and the community. Dealing with ethical issues is often perplexing and without the benefits of a decision making model underlined by ethical positions we may be apt to repeat our old ways. Further, value and belief systems are often times absent and not connected to a decision making model in a useful manner. We argue for a modification of decision-making models that has been accepted in companies with stronger links with ethics and morality. With this aim we propose a return to the base values of Buddhism, Christianity, Hinduism, Judaism, and Islam by scriptures, underlying six dominant ethical approaches that drive practices in organizations. |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wbrepe:wb064314&r=acc |
| By: | Peter Rowland |
| Abstract: | This paper studies foreign and domestic firms in Colombia and, in particular, whether these firms behave differently. The study uses a dataset containing the 2003 balance sheets and income statements for some 7,001 firms. The dataset was obtained from the Superintendencia de Sociedades. The study concludes that foreign and domestic firms differ in a number of aspects. Foreign firms tend to have a larger total asset turnover than domestic firms; they are more leveraged than domestic firms; and they tend to have a lower net-profit margin than domestic firms. However, these results are not conclusive. When the dataset is broken down by sector, the results are much less clear. When analysing external debt, foreign firms do, nevertheless, tend to hold almost four times as much external debt as domestic firms of the same size. Foreign firms also tend to import more. |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:375&r=acc |
| By: | Christian Keuschnigg |
| Abstract: | The routine way of anticipating the effects of the corporate (profit) tax on investments and location choice is to calculate the effective marginal and average tax rates. This paper introduces a model of monopolistic competition to show how investment on the extensive and intensive margins responds to changes in the effective marginal and average tax rates. Intensive investment reflects the marginal expansion of established businesses. Extensive investment refers to the location of new production sites and reflects the choice between exports and foreign direct investments as alternative strategies of foreign market access. The paper calculates the comparative static effects of the corporate tax and shows how the dead weight loss of the tax depends on the elasticities of extensive and intensive investments. |
| Keywords: | Exports, foreign direct investment, corporate tax, dead weight loss |
| JEL: | D21 F23 H25 L11 L22 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:usg:dp2006:2006-16&r=acc |