nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒08‒16
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Bank transactions: pathway to the single tax ideal A modern tax technology;the Brazilian experience with a bank transactions tax (1993-2007) By Cintra, Marcos
  2. Intellectual capital communication: evidence from social and sustainability reporting By Passetti, Emilio; Tenucci, Andrea; Cinquini, Lino; Frey, Marco
  3. Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries By Henrik Jacobsen Kleven; Claus Thustrup Kreiner; Emmanuel Saez
  4. The responsive approach by the Basel Committee (on Banking Supervision) to regulation: Meta risk regulation, the Internal Ratings Based Approaches and the Advanced Measurement Approaches. By Ojo, Marianne
  5. Computerization, accounting transparency and competitiveness of public administration: a regional analysis By Carlo Maria Arpaia; Raffaele Doronzo; Paquale Ferro
  6. Les déterminants de la qualité des divulgations non-financières – Le cas du Carbon Disclosure Project By Yann Kervinio
  7. Long-Run Impacts of Inflation Tax with Endogenous Capital Depreciation By Fujisaki, Seiya; Mino, Kazuo

  1. By: Cintra, Marcos
    Abstract: Globalization is eroding the efficiency of conventional taxes, such as VAT´s (value added taxes). Meanwhile, a new form of taxation, levied on bank transactions, was successfully used in Brazil (1993-2007). Based on digital technology, this tax innovation proved to be evasion-proof, more efficient and less costly than orthodox tax models. Furthermore, the significant revenue-raising capacity of bank transactions taxation revived the centuries old ideal of the Single Tax. This book carries out a qualitative and quantitative in-depth comparison of the efficiency, equity and compliance costs of a bank transactions tax relative to orthodox tax systems, and opens new perspectives for the use of modern banking technology in tax reform across the world.
    Keywords: bank debit tax; tax reform; taxation; bank transactions tax;
    JEL: H22 H21 H26
    Date: 2009–07
  2. By: Passetti, Emilio; Tenucci, Andrea; Cinquini, Lino; Frey, Marco
    Abstract: The purpose of this study is to investigate the level and quality of intellectual capital information communicated through social and sustainability report for a sample of 37 Italian listed company over two years (2005 and 2006). The study use the resource based theory to explain the relationship between corporate social responsibility and intellectual capital. Content analysis is applied through a multidimensional framework composed by three main disclosure profiles(time orientation, nature and type of information) which permits to analyse in depth the quality of intellectual capital information. The results highlight significant and increasing presence of intellectual capital information in CSR reports which is communicated principally in non financial, quantitative and non time specific terms. Human capital is the most reported category followed by relational and organisational capital. There are many similarities between the two typology of report contributing to the ongoing debate on corporate reporting practices.The results suggest that the integration between IC report and CSR report is a plausible issue and that could be useful to enhance the transparency and the understanding of company processes and activities both for internal and external stakeholders. Very few studies have analysed the intellectual capital in CSR report in atheoretical and mono-dimensional way. Moreover the resource base theory has been scarcely applied to explain the disclosure of intellectual capital even if there are several similarities between the two perspectives.
    Keywords: intellectual capital; disclosure; social and sustainability reporting; resource based view; corporate social responsibility
    JEL: M41
    Date: 2009–06
  3. By: Henrik Jacobsen Kleven; Claus Thustrup Kreiner; Emmanuel Saez
    Abstract: This paper presents a simple agency model to explain why third-party income reporting by employers dramatically improves income tax enforcement. Modern firms have a large number of employees and carry out complex production tasks, which requires the use of accurate business records. Because such records are widely used within the firm, any single employee can denounce collusive tax cheating between employees and the employer by revealing the true records to the government. We show that, if a firm is large enough, such whistleblowing threats will make tax enforcement successful even with low penalties and low audit rates. Embedding this agency model into the standard Allingham-Sandmo tax evasion model, we show that third-party reporting improves tax enforcement if the government disallows self-reported losses or audits such losses more stringently, which fits with actual tax policy practices. We also embed the agency model into a simple macroeconomic growth model where the size of firms grows with exogenous technological progress. In early stages of development, firms are small, tax rates are severely constrained by enforcement, and the size of government is too small. As firm size increases, the enforcement constraint is slackened, and government size is growing. In late stages of development, firm size is sufficiently large to make third-party tax enforcement completely effective and government size is socially optimal.
    JEL: H11 H20
    Date: 2009–08
  4. By: Ojo, Marianne
    Abstract: The use of complex and sophisticated financial instruments, such as derivatives, in the modern financial environment, has triggered the emergence of new forms of risks. As well as the need to manage such types of risks, this paper investigates developments which have instigated the Basel Committee in developing advanced risk management techniques such as the Internal Ratings Based (IRB) approaches and the Advanced Measurement Approaches (AMA). Developments since the inception of the 1988 Basel Capital Accord have not only led to growing realisation that new forms of risks have emerged, but that previously existing and managed forms require further redress. Basel II has evolved to a form of meta regulation – a type of regulation which involves the risk management of internal risk within firms. This paper attempts to illustrate the extent to which the Basel II Capital Accord has responded to global and financial developments and concludes on the basis of available research evidence, that given the difficulties attributed to the constantly evolving nature of risk and the need for regulators to remain one step ahead, that Basel II, to an extent, has been responsive in meeting with regulatory demands. However, the existence of unregulated instruments such as hedge funds still implies that, despite its advancements and achievements, the Basel Committee still faces uphill challenges in its efforts to address and regulate risks.
    Keywords: Basel; Committee; bank; regulation; AMA; IRB; risk
    JEL: K2
    Date: 2009–08
  5. By: Carlo Maria Arpaia (Banca d'Italia); Raffaele Doronzo (Banca d'Italia); Paquale Ferro (Banca d'Italia)
    Abstract: The aim of this work is to provide information of use in evaluating Italian local public entities from two angles: 1) computerization and supply of web-services; 2) “accounting transparency†and use of accounting information for internal control and benchmarking. The analysis is based on data gathered periodically by the Bank of Italy. In order to give a broader view of the quality of Italian public administration, the outcome of the analysis is compared with the Formez research on business activity policies, employment policies and territorial competitiveness policies. The computerization index shows a better performance by northern regions. The “accounting transparency†index, based on SIOPE data, instead reveals that geographical location is not a crucial determinant of the performance gap between Italian regions.
    Keywords: Public administration, competitiveness, computerization, Mezzogiorno
    JEL: H11 R58
    Date: 2009–07
  6. By: Yann Kervinio
    Abstract: Non-financial disclosures are mainly discretionary and, consequently, environmental and social data about firms are incomplete and difficult to assess. In this report, we raise the issue of the quality of these data. A review of the literature first presents the broad range of conclusions reached and highlights the main results. This leads us to question the ability of current data to meet the goals which are expected from them, and to reconsider the relevance of somewhat regulating social and environmental disclosures. Next, we turn to the case of the Carbon Disclosure Project, which frames and promotes voluntary disclosures concerning greenhouse gas emissions. We analyse the determinants of responses and their quality using a sample from the Fortune Global 500. Consistently with prior results, we find that the size of firms influences both participation and the quality of responses, and that firms with more dispersed ownership are more likely to participate. Our findings also point at the weak quality of responses from firms associated with the BRIC group of countries (Brasil, Russia, India and China). Finally, we introduce a model which aims at addressing the main econometric problems encountered and we outline an agenda for future research. <P>De la part des entreprises, les divulgations non-financières restent essentiellement soumises à la discrétion des dirigeants, ce qui conduit à une information environnementale et sociale lacunaire à l’interprétation délicate. En particulier, la question de la qualité de ces divulgations est soulevée. Une revue de littérature présente tout d’abord les principaux résultats parmi la diversité des conclusions auxquelles aboutissent les études. Cette revue nous amène à douter de la possibilité d’assurer une information de qualité par voie volontaire et à nous interroger sur la pertinence d’un encadrement. Nous nous penchons ensuite sur le cas du Carbon Disclosure Project qui encadre et stimule la divulgation volontaire d’informations relatives aux émissions de gaz à effet de serre de la part des grandes entreprises. À partir des données recueillies pour l’échantillon du Fortune Global 500, nous analysons les déterminants de la réponse et de la qualité de celle-ci. En cohérence avec les résultats de la littérature, nous trouvons que la taille influence positivement à la fois la propension à participer et la qualité des réponses et que les entreprises dont l’actionnariat est diffus participent plus facilement au programme. Les résultats pointent par ailleurs la qualité médiocre des divulgations des entreprises des BRIC. Au final, nous utilisons un modèle qui vise à traiter l’ensemble des problèmes économétriques soulevés et nous suggérons des voies de développement pour les recherches à venir.
    Keywords: Data disclosures, disclosures mecanism, divulgation de données, mécanismes de divulgation
    Date: 2009–08–01
  7. By: Fujisaki, Seiya; Mino, Kazuo
    Abstract: This paper examines the long-run impact of inflation tax in the context of a generalized Ak growth model in which the rate of capital depreciation is endogenously determined. It is assumed that the rate of capital depreciation positively depends on capital utilization rate and negatively depends on maintenance spending. Money is introduced via a cash in advance constraint that may apply to the maintenance expenditure as well as to consumption and investment spending. We find that the long-run effects of inflation tax are more complex than those obtained in the monetary Ak growth model with a fixed capital depreciation rate. In particular, the relation between inflation and growth is highly sensitive to the specifications of the capital depreciation technology as well as to the forms of cash-in-advance constraint.
    Keywords: cash-in-advance constraint; AK growth model; endogenous capital depreciation; maintenance expenditures
    JEL: E22
    Date: 2009–07–13

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