nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒02‒07
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Financial Leverage and Corporate Taxation : Evidence from German Corporate Tax Return Data By Nadja Dwenger; Viktor Steiner
  2. The Benefits and Problems of Linking Micro and Macro Models - Evidence from a Flat Tax Analysis By Peichl A
  3. Generational policy and the macroeconomic measurement of tax incidence By Juan Carlos Conesa; Carlos Garriga
  4. Information Disclosure and Corporate Governance By Hermalin, Benjamin E.; Weisbach, Michael S.
  5. International corporate taxation and US multinationals' behaviour: an integrated approach By Céline Azémar

  1. By: Nadja Dwenger; Viktor Steiner
    Keywords: financial leverage, financial structure, debt ratio, corporate income taxation, corporate tax return data
    JEL: G32 G38 H25 H32
    Date: 2009
  2. By: Peichl A (Institute for the Study of Labor (IZA))
    Abstract: The aim of this paper is to describe the state-of-the-art in simulation and to illustrate benefits and problems of linking micro and macro models by analysing flat tax proposals for Germany. The analysis shows that a personal income flat tax can indeed overcome the fundamental equity efficiency trade-off while simultaneously increasing the tax revenue. However, this result does not hold for a flat tax combining a personal income flat tax with a corporate cash flow flat tax, even when allowing for an ex-post loss in revenue as the top of the distribution still gains the most.
    Date: 2009–01–28
  3. By: Juan Carlos Conesa; Carlos Garriga
    Abstract: In this paper we show that the generational accounting framework used in macroeconomics to measure tax incidence can, in some cases, yield inaccurate measurements of the tax burden across age cohorts. This result is very important for policy evaluation, because it shows that the selection of tax policies designed to change generational imbalances could be misleading. We illustrate this problem in the context of a Social Security reform where we show how fiscal policy can affect the intergenerational gap across cohorts without impacting the distribution of welfare. We provide a more accurate procedure that only measures changes in generational imbalances derived from policies with real effects.
    Keywords: Fiscal policy ; Taxation
    Date: 2009
  4. By: Hermalin, Benjamin E. (?); Weisbach, Michael S. (Ohio State U)
    Abstract: Disclosure is widely assumed to play an important role in corporate governance. Yet governance has not been the focus of previous academic analyses of disclosure. We consider disclosure in the context of corporate governance. We argue that disclosure is a two-edged sword. On one side, disclosure of information permits principals to make better decisions. On the other, it can create or exacerbate agency problems: The release of information has the potential to harm agents (e.g., management) either through the actions the principals take as a consequence (e.g., dismiss the agent) or because the agents care about how they are perceived (e.g., the agents have career concerns or hold equity in the firm). This can lead agents to pursue actions that are not in the principals' interests. Moreover, these problems become worse, the more precise the principals' information. We present a series of models formalizing this idea. These models lead to a number of empirical implications, both for disclosure-increasing regulations and for the relation between disclosure and governance.
    Date: 2008
  5. By: Céline Azémar
    Abstract: Using data from the International Revenue Service, this paper explores the effects of corporate taxation on U.S. capital invested abroad and on tax planning practices (dividend payments, income shifting, and passive investment). The econometric analysis first indicates that investment is strongly influenced by average tax rates, with a magnified impact for particularly low-tax rates implying that the attractiveness of low-tax countries is not weakened by anti-deferral rules and cross-crediting limitations. Further explorations suggest that firms report higher profit and are less likely to repatriate dividends when they are located in low-tax jurisdictions. Firms also report higher Subpart F income in countries in which they shift their profit, suggesting that cross-crediting provides an incentive to shift passive income in low-tax countries and that passive investment can be an alternative strategy to minimize taxes when active investment opportunities are lacking. Finally, the paper estimates the role of effective transfer pricing regulation on income shifting activities using the quality of host countries' law enforcement. It appears that low degrees of law enforcement are associated with higher income-shifting.
    Keywords: Uncertainty, Multi-Prior Beliefs, Suspension Schemes, Panic-Driven Bank Runs.
    JEL: D81 G21
    Date: 2008–08

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