nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2007‒06‒11
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Remembering Thirty-five Years of Social Accounting: A Review of the Literature and the Practice By Kaya, Ugur; Yayla, Hilmi Erdogan
  2. Effects of Monetary Policy on Corporations in Brazil. An Empirical Analysis of the Balance Sheet Channel By Fernando N. de Oliveira; Marco Antônio Costa
  3. Strategic Tax Collection and Fiscal Decentralisation: The Case of Russia By Alexander Libman; Lars P. Feld
  4. The Value Added Tax : Its Causes and Consequences By Keen, Michael; Lockwood, Ben
  5. Diversification and the banks’ risk-return-characteristics – evidence from loan portfolios of German banks By Behr, Andreas; Kamp, Andreas; Memmel, Christoph; Pfingsten, Andreas

  1. By: Kaya, Ugur; Yayla, Hilmi Erdogan
    Abstract: The purposes of this paper are to briefly review the past thirty-five years of social accounting literature and to examine social accounting practices within the choosen time period. Further, this paper contributes to the limited literature of researchs exploring social accounting literature and literature’s effect on social disclosures and corporate reporting. We use three time periods of Mathews (1997) as 1970-1980,1981-1990, 1991-1995 and adds one more period as 1995-2006 to undertake a general review of the literature within social and enviromental accounting. As concluded, we find that, in spite of growing interest for social accounting practices and literature, there are still major problems related social accounting practices that researchers may undertake.
    Keywords: Social accounting; social reporting; environmental accounting
    JEL: M41
    Date: 2007–03–01
  2. By: Fernando N. de Oliveira (IBMEC Business School - Rio de Janeiro and Central Bank of Brazil); Marco Antônio Costa (IBMEC Business School - Rio de Janeiro)
    Abstract: This paper investigates the transmission mechanism of monetary policy in Brazil. It is an empirical analysis of the effects of monetary policy on the behavior of corporations in Brazil. We use the balance sheet theory to investigate how corporations respond to monetary contractions. Our results show that small corporations are more sensitive to monetary contractions than large corporations.
    Keywords: Monetary Transmission Mechanism, Balance Sheet Channel, Central Bank, Monetary Contractions
    JEL: E22 E52 E44
    Date: 2007–06–05
  3. By: Alexander Libman; Lars P. Feld
    Abstract: In a centralized federation, where tax rates and taxation rules are set by the federal govern-ment, manipulating the thoroughness of tax auditing and the effectiveness of tax collection could be attractive for regional authorities because of a variety of reasons. These range from tax competition to principal-agent problems, state capture and benefits of fiscal equalisation. In this paper we discuss strategic tax auditing and collection from the perspective of fiscal federalism and test for strategic tax collection empirically using data of the Russian Federa-tion. Russia’s regional authorities in the 1990s have always been suspect of tax auditing ma-nipulations in their favour. However, in the 2000s increasing bargaining power of the centre seems to induce tax collection bodies in the regions to manipulate tax auditing in favour of the federation. We find partial evidence in favour of both of these hypotheses.
    Keywords: fiscal federalism; tax arrears; transition economies
    JEL: H26 H77
    Date: 2007–05
  4. By: Keen, Michael (IMF Institute, International Monetary Fund); Lockwood, Ben (University of Warwick)
    Abstract: Almost unknown in 1960, the value added tax (VAT) is now found in more than 130 countries, raises around 20 percent of the world’s tax revenue, and has been the centerpiece of tax reform in many developing countries. This paper explores the causes and consequences of the remarkable rise of the VAT. A key question is whether it has indeed proved, as its proponents claim, an especially effective form of taxation. To address this, it is first shown that a tax innovation—such as the introduction of a VAT—reduces the marginal cost of public funds if and only if it also leads an optimizing government to increase the tax ratio. This observation leads to the estimation, on a panel of 143 countries for 25 years, of a system of equations describing both the probability of VAT adoption and the revenue impact of the VAT. The results point to a rich set of determinants of VAT adoption, this being more likely, for example, if a country has a program with the IMF and the less open it is to international trade. In the revenue equation, the presence of a VAT does indeed have a significant impact, but also a complex one, with a negative intercept effect counteracted by positive effects that are greater the higher are per capita income and, more tentatively, openness. While the sign of the revenue impact of the VAT is thus in general ambiguous, most countries that have adopted a VAT seem to have gained a more effective tax instrument in doing so (though this is less apparent in sub-Saharan Africa), and most without it seem likely to gain from its adoption.
    Keywords: Value added tax ; tax reform
    JEL: H20 H21
    Date: 2007
  5. By: Behr, Andreas; Kamp, Andreas; Memmel, Christoph; Pfingsten, Andreas
    Abstract: Banks face a tradeoff between diversifying and focusing their loan portfolio. In this paper we carry out an empirical study for the German market to shed light on the question whether or not the benefits of risk sharing outweigh those of specialization. We use data from the Bundesbank’s quarterly borrowers statistic to determine the degree of diversification in the banks’ loan portfolios and combine this data with the banks’ balance sheets and audit reports. The unique database comprises data from all German banks during the period from 1993 to 2003. Our main results can be summarized in three statements: i) Specialized banks have a slightly higher return than diversified banks. ii) Specialized banks have lower relative loan loss provisions and lower shares of non-performing loans, iii) However, the standard deviations of the loan loss provision ratio and the non-performing loan ratio are lower for diversified banks.
    Keywords: bank lending, loan portfolio, portfolio theory, diversification, riskreturn analysis
    JEL: C23 C43 G11 G21
    Date: 2007

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