nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒01‒17
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Measuring Public Announcements’ Disclosure Quality on Tallinn, Riga and Vilnius Stock Exchanges By Laivi Laidroo
  2. Bridges in social capital: A review of the definitions and the social capital of social capital researchers By Akcomak, Semih
  3. Taxes in Latin America: Do wealth and inequality matter? By Bárbara Castelletti
  4. The added value from adopting a CGE approach to analyse changes in environmental trade balances By Karen Turner; Michelle Gilmartin; Peter McGregor; Kim Swales
  5. Tax revenue and the macroeconomic framework in Italy By Alberto Locarno; Alessandra Staderini

  1. By: Laivi Laidroo (Department of Economics at Tallinn University of Technology)
    Abstract: Previous literature has been occupied with measuring disclosure quality in financial reports and no indication has been provided on how the quality of public announcements could be measured. The purpose of this paper is to introduce a methodological approach to its measurement and to illustrate its implementation possibilities in the context of Tallinn, Riga and Vilnius Stock Exchanges. The disclosure quality measure proposed was based on six quality attributes (informativeness, relevance, precision, rarity, frequency, and unexpectedness) defined in the context of information theory and operationalised through finance/accounting and cognitive psychology theories. Implementation in the context of three capital markets confirmed that there has been an increase in disclosure quality over time. Company size and stock exchange where the company was listed affected its disclosure quality level. Main areas for disclosure quality improvement were identified and the results also indicated that small firms and companies with low quality disclosures tended to be less prone to disclosure quality improvement.
    Keywords: Disclosure, public announcements, emerging markets
    JEL: G1 G3
    Date: 2008
  2. By: Akcomak, Semih (UNU-MERIT, and Maastricht University)
    Abstract: There has been a recent surge of interest in social economics and social capital. Articles on social capital that are published in the last five years constitute more than 60 percent of all articles on social capital. Research on social capital is now massive and spans sociology, economics, management, political science and health sciences. Despite this interest there is still not a consensus on the definition and the measurement of social capital. This paper argues that this is due to lack of interaction between disciplines. The social capital of social capital researchers is low between disciplines. Different from other theories of capital, social capital theory has concurrently been developed by various disciplines and as such, advancements in social capital research could only be achieved by conducting cross-disciplinary research.
    Keywords: Capital, social capital, co-authorship network, network analysis, diffusion processes
    JEL: A13 D85 O33 Z13
    Date: 2009
  3. By: Bárbara Castelletti
    Abstract: To meet pressing development challenges, Latin American states need fiscal resources. The good news is that in the last decade, favourable macroeconomic conditions and the design of better tax systems pushed up fiscal revenues in Latin America. Notably, tax revenues have increased by close to 1.8 per cent annually between 1990 and 2006, reflecting a widespread strengthening of taxes levied on income, profits and capital gains and general goods and services.
    Date: 2008–10
  4. By: Karen Turner (Department of Economics, University of Strathclyde); Michelle Gilmartin (Department of Economics, University of Strathclyde); Peter McGregor (Department of Economics, University of Strathclyde); Kim Swales (Department of Economics, University of Strathclyde)
    Abstract: The application of multi-region environmental input-output (IO) analysis to the problem of accounting for emissions generation (and/or resource use) under different accounting principles has become increasingly common in the ecological and environmental economics literature in particular, with applications at the international and interregional subnational level. However, while environmental IO analysis is invaluable in accounting for pollution flows in the single time period that the accounts relate to, it is limited when the focus is on modelling the impacts of any marginal change in activity. This is because a conventional demand-driven IO model assumes an entirely passive supply-side in the economy (i.e. all supply is infinitely elastic) and is further restricted by the assumption of universal Leontief (fixed proportions) technology implied by the use of the A and multiplier matrices. Where analysis of marginal changes in activity is required, extension from an IO accounting framework to a more flexible interregional computable general equilibrium (CGE) approach, where behavioural relationships can be modelled in a more realistic and theory-consistent manner, is appropriate. Our argument is illustrated by comparing the results of introducing a positive demand stimulus in the UK economy using IO and CGE interregional models of Scotland and the rest of the UK. In the case of the latter, we demonstrate how more theory consistent modelling of both demand and supply side behaviour at the regional and national levels effect model results, including the impact on the interregional CO2 ‘trade balance’.
    Keywords: modelling, MRIO, CO2 trade balance, environmental responsibility
    JEL: D57 D58 R15 Q56
    Date: 2009–01
  5. By: Alberto Locarno (Bank of Italy); Alessandra Staderini (Bank of Italy)
    Abstract: The performance of tax receipts in Italy during the period 1978-2006 is analysed through the relationship between the growth of revenue and the evolution of the macroeconomic framework. Series of actual tax receipts are adjusted to take account of discretionary measures, transformed into implicit tax rates, and then broken down into the structural components. A regression analysis of the trend element shows that the performance of tax revenue depends not only on the main variables used in forecasting models, but also on a number of factors, some of which (interest rates, oil prices, the output gap, and inflation) have a direct impact on implicit tax rates. Other factors (the share of profits of banks and listed companies, the proportion of energy consumption in total spending, and purchases of durable goods) indirectly effect the incidence of taxation by causing shifts in the tax base among sectors with different opportunities for tax evasion.
    Keywords: tax receipts, discretionary measures, breakdown into structural components
    JEL: C22 E62 H2
    Date: 2008–12

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