nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2007‒12‒15
six papers chosen by
Alexander Harin
Modern University for the Humanities

  3. Further Evidence on Auditor Selection Bias and The Big 4 Premium By Clatworthy, Mark A; Makepeace, Gerald H; Peel, Michael J.
  4. Automation of dashboards and the coherence of organizations: paradoxes and ambiguities based on two particular case studies By Denis Travaillé; Christine Marsal
  5. Automatisation des tableaux de bord et cohérence du contrôle de gestion:à propos de deux cas By Denis Travaillé; Christine Marsal
  6. The Globalization of Tax Policy: What German Politicians Believe By Heinemann, Friedrich; Janeba, Eckhard

  1. By: Mustata, Razvan V.; Matis, Dumitru
    Abstract: This study analyzes the quantification methods of the harmonization degree between the national accounting settlements and the international accounting standards. Starting from the presentation of the main methods used for this purpose such as - Euclidean distances, Jaccard’s coefficients, Spearman’s coefficients and other nonparametric methods for rank correlation analysis – we suggest a method of quantification for the need of harmonization between the national accounting standards and the financial reporting international ones. Beyond the certainty of a quantification model foe this need, we analyze in the present study the situation of 33 states selected through reporting at a global level. The main achievement of this study is represented by the concept of pre-formal harmonization and the method to quantify it, strongly connected with the general accepted concepts of formal and material harmonization of accounting.
    Keywords: financial reporting standards; pre-formal harmonization; measurement of harmonization
    JEL: M41 C43 F23 F43
    Date: 2007–12–08
  2. By: Mustata, Razvan V.; Matis, Dumitru; Bodea, Gabriela
    Abstract: In this study we concentrate our efforts on the consequences that the existence and manifestation of globalization have on various domains of human activity. The impact of globalization will be analyzed from the perspective of the cause-effect relationship, with a special emphasis on the consequences of the phenomenon. A special part of our scientific demarche is reserved to the accounting sphere. We try to create a new dimension on the basement of relations between globalization and accounting systems. Globalization represents a new dimension of our world. The accounting domain is today into real connections with phenomenon of globalization. In this context, our main objectives are represented by the research demarche to create a model of quantification the impact of globalization on regulations and accounting systems. We believe that such a model of quantification could be real and its contributions to scientific development will be considerable.
    Keywords: Globalization; International Accounting; Impact; Quantification
    JEL: O1 M41 F5 F2
    Date: 2007–12–11
  3. By: Clatworthy, Mark A (Cardiff Business School); Makepeace, Gerald H (Cardiff Business School); Peel, Michael J. (Cardiff Business School)
    Abstract: In recent years, the competitiveness of the corporate audit market has received a great deal of attention from policy makers and academic researchers alike. Among the main issues of concern is whether large auditors command a premium when setting fees for statutory audit services, and whether this is symptomatic of a lack of competition in the market for audit services or results from differences in the quality of the product offered by the big 4. A large number of academic studies based on independent data sets find a positive OLS coefficient on a large auditor binary variable in audit fee regressions and interpret this as evidence of a premium. However, recent research on UK private companies suggests that the large auditor premium is explained by auditor self-selection bias and that when this is controlled for using a two-stage Heckman procedure, the premium vanishes. In this paper we examine some of the difficulties in properly specifying the audit fee equation and discuss potential sensitivity of the estimates provided by the two-step model. We re-estimate audit fee equations for over 36,000 UK private companies employing a relatively new development in the applied econometrics literature - propensity score matching. In addition, we employ formal decomposition methods, which have not been used in the audit literature to date, to provide a more comprehensive analysis of big 4 premiums. Our results suggest that evidence of the large auditor premium vanishing when selection bias is controlled for do not seem to generalise and that the Heckman two-step procedure is highly sensitive to model specification. Matching results suggest that auditees of similar size, risk and complexity pay significantly higher fees to big 4 auditors.
    Keywords: Audit fees; large auditor premium; propensity score matching; decomposition methods; selection bias
    Date: 2007–10
  4. By: Denis Travaillé (Université de Montpellier 2); Christine Marsal (Université de Bourgogne)
    Abstract: This paper introduces the results of an exploratory field research dealing with the effects of the automation of dashboards on the coherence of representations in decentralized firms. The aim of this research is to answer questions concerning the influence of the implantation of business intelligence systems on the sharing of manager representations within organizations. Traditionally, dashboards contribute to the spread of the strategic management vision of the future. When they are automated, it may be less than evident that they enhance collaborative behaviour.
    Keywords: dashboards;strategic management;organizational architecture.
    JEL: M19 M41
    Date: 2007–06
  5. By: Denis Travaillé (Université de Montpellier 2); Christine Marsal (Université de Bourgogne)
    Abstract: Cet article a pour objet de s’interroger sur les rapports entre l’automatisation des tableaux de bord et la cohérence du contrôle de gestion. A partir de deux cas de bureaucraties, celui d’une entreprise industrielle et celui d’une banque, nous étudions cette relation sous l’angle du partage des représentations et de la cohérence des comportements. Il en ressort que l’augmentation de la formalisation ne crée pas davantage de rigidité mais produit au contraire plus de dynamique ou de continuité et de permanence. Cependant, les résultats montrent aussi la limite d’une gestion automatique de la cohérence dans la mesure où les informations nécessaires à l’adaptation à long terme de la firme semblent difficilement automatisables.
    Keywords: cohérence;contrôle de gestion;performance;automatisation des tableaux de bord.
    JEL: M19 M41
    Date: 2007–06
  6. By: Heinemann, Friedrich; Janeba, Eckhard
    Abstract: The process of globalization has an important impact on national tax policies. Most of the literature on taxation of capital in open economies does not focus directly on the political decision making process and assumes that the desired tax policy is responding to objective underlying tradeoffs. Based on an original survey of members of German national parliament (Bundestag) in 2006/7 we document a strong ideological bias among policy makers with respect to the perceived mobility of international tax bases (mobility of real capital and shifting of paper profits). Ideology via party affiliation influences also directly and indirectly the perceived national autonomy in tax setting and preferences for a EU minimum tax for companies. There seems little consensus as to what the efficiency cost of capital taxation in open economies are, even though our survey falls in period of extensive debate about and actual adoption of a company tax reform bill in Germany.
    Keywords: Globalization, business taxation, tax competition, beliefs, member of parliament
    JEL: D78 D83 H25
    Date: 2007

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