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on Accounting and Auditing |
| By: | Watanabe, Yuichi |
| Abstract: | This paper concerns the measurement of the impact of tax differentials across countries on inflow of Foreign Direct Investment (FDI) by using comprehensive data on the foreign operations of U.S. multinational corporations that has been collected by the Bureau of Economic Analysis (BEA), the U.S. Department of Commerce. In particular, this research focuses on examining: (1) how responsive FDI locations are to tax differentials across countries, (2) how different the tax effect on FDI inflow is between developed and developing countries, and (3) whether investment location decisions have become more or less sensitive to tax differences between countries over time ranging from the late 1990s to the early 2000s. Estimation results suggest that high rates of corporate income taxation are associated with reduced foreign assets of U.S. multinational firms in all industries by decreasing the return to foreign asset investment. Further, foreign assets of U.S. multinationals in all industries have become more responsive to non-income tax differentials across countries than to income tax differences from 1999 to 2004. Empirical estimates also indicate that foreign investment by American firms is associated with higher tax sensitivity more in developed countries than in those that are developing. |
| Keywords: | Developing countries, United States, Foreign investments, International business enterprises, Taxation, Tax differentials, FDI inflow, Developed/Developing countries, Income/Non-income taxation, Developed countries |
| JEL: | F21 F23 H25 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper263&r=acc |
| By: | Dima (Cristea), Stefana Maria; David, Delia; Păiuşan, Luminiţa |
| Abstract: | The objective of the present paper is to provide a synopsis of the recent international financial reporting developments as well as to identify some of the related worldwide implications. The unprecedented joint activity of the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) has caused, in the last decade, a series of debates on whether or not International Financial Reporting Standards (IFRSs) represent what is best of the international accounting practices. The adoption of these IFRSs by more than one hundred jurisdictions around the world is probably one of the most important recent changes in financial information environment. In this context it is imperative to examine the position of the United States of America and European Union in relation to the endorsement of these standards, in order to differentiate the institutional decisions able to influence greatly the adoption process. Moreover, this paper explores several aspects connected to the changes in IASB’s conceptual framework and in the main accounting standards. From the proposed analysis, it emerges the image of IASB’s standards complex nature and the role played by these recent developments in reshaping the future of accounting. |
| Keywords: | International Financial Reporting Standards;International Accounting Standards Board (IASB) |
| JEL: | M40 |
| Date: | 2010–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27166&r=acc |
| By: | Itaya, Jun-ichi; Okamura, Makoto; Yamaguchi, Chikara |
| Abstract: | This paper investigates the conditions under which partial harmonization for capital taxation is sustained in a repeated interactions model of tax competition when there are three heterogenous countries with respect to their capital endowments. We show that regardless of the structure of the coalition (i.e., any group of countries), whether partial tax harmonization is sustainable or not crucially depends on the capital endowment of the median country relative to those of the large and small countries. The most noteworthy finding is that the closer the capital endowment of the median country to the average capital endowment of the large and small countries, the less likely is the tax harmonization including the median country to prevail and the more likely is the partial tax harmonization excluding the median country to prevail. |
| Keywords: | Tax coordination, Asymmetric countries, Repeated game, Tax competition, |
| JEL: | H73 F59 F21 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:hok:dpaper:229&r=acc |
| By: | Giacomo Ricotti (Banca d'Italia); Vittorio Pinelli (Banca d'Italia); Giovanni Santini (Banca d'Italia); Laura Santuz (Banca d'Italia); Ernesto Zangari (Banca d'Italia); Stefania Zotteri (Banca d'Italia) |
| Abstract: | The paper considers several approaches to the measurement of firms’ tax burden in order to identify significant indicators for the banking sector. It also analyses features of tax provisions which are peculiar to the Italian system. On these bases, it looks at measures affecting the tax burden on the Italian banking system over the period 2000-09. Inter alia, the analysis shows the role played by the rules for a firm’s tax base and for tax relief and considers the increasing importance of deferred tax assets. The comparison between the Italian banking sector and those of other countries, in relation to commercial banks, shows that over the period 1998-2008 all jurisdictions experienced a reduction in both effective and statutory tax rates. Even if the tax burden on Italian banks has seen one of the largest reductions, this tax indicator is still the highest among the countries considered. |
| Keywords: | tax burden, banks |
| JEL: | G21 H25 H87 K34 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_80_10&r=acc |
| By: | Ellen R. McGrattan |
| Abstract: | Previous studies of the U.S. Great Depression find that increased taxation contributed little to either the dramatic downturn or the slow recovery. These studies include only one type of capital taxation: a business profits tax. The contribution is much greater when the analysis includes other types of capital taxes. A general equilibrium model extended to include taxes on dividends, property, capital stock, and excess and undistributed profits predicts patterns of output, investment, and hours worked more like those in the 1930s than found in earlier studies. The greatest effects come from the increased tax on corporate dividends. |
| JEL: | E13 E32 H25 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16588&r=acc |
| By: | Dima (Cristea), Stefana Maria; David, Delia; Păiuşan, Luminiţa |
| Abstract: | The objective of this paper is to provide a synopsis of Islamic accounting characteristics as well as to identify some of the determinants which led to its specificity. It explores several aspects related to the Islamic accounting principles and its institutional framework. The cultural paradigm is viewed as a differentiating key factor in the elaboration and implementation of the accounting standards in the Islamic Word. Based on Hofstede approach, the elements of this paradigm are linked to the relative preference for IFRS adoption of different Islamic countries. From the proposed analysis, it emerges the image of Islamic Accounting’s complex nature, which may be seen as a distinct alternative to the principles and views promoted by IFRS. |
| Keywords: | Islam; accounting; IFRSs; culture; banking; AAOIFI |
| JEL: | M41 |
| Date: | 2010–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27174&r=acc |
| By: | Dima, Bogdan; Dima(Cristea), Stefana Maria; Moldovan, Nicoleta; Pirtea, Marilen Gabriel |
| Abstract: | This study is focused on the linkages between the legislative families as descriptors of national legislative systems and International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB). We consider such analysis as a case study for the more general issue of explaining the preferences of national regulators in the adoption of foreign norms, rules, standards and practices. By using a dataset of 162 jurisdictions and dummy variables designed to capture the current stage of IFRSs adoption and, respectively, the taxonomy of their legislative systems, we find that a full IFRSs adoption is more likely to occur in countries which have principles-based on legislative mono-systems. In addition, we observe that a strong rule of law, with an effective mechanism of property rights reinforcement, as well as the pre-adoption existence of a pro-growth set of public policies can contribute to the encouragement of IFRSs adoption. |
| Keywords: | IFRSs adoption• Legislative families |
| JEL: | K49 M49 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27172&r=acc |
| By: | Stuart Adam (Institute for Fiscal Studies and IFS); James Browne (Institute for Fiscal Studies) |
| Abstract: | <p><p>Governments wishing to reduce inequality by redistributing money from the rich to the poor face the dilemma that in doing so (by increasing tax rates and means-tested benefits, for example) they reduce the incentive for individuals to increase their incomes. Policy-makers have tried to balance these objectives in different ways and, partly as a result of this, the tax and benefit system today is very different from the one that existed thirty years ago. In this paper we look at how the tax and benefit system redistributed income and affected incentives to work in 2009-10, and at the effect of tax and benefit reforms between 1978-79 and 2009-10 on the level of inequality and work incentives.</p></p> |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:10/24&r=acc |
| By: | D K Srivastava; C Bhujanga Rao (Madras School of Economics) |
| Abstract: | Extensive reforms of India‟s indirect taxes at the central and the state levels has prepared the necessary ground for the implementation of a comprehensive goods and services tax (GST). The Empowered Committee of the State Finance Ministers in their First Discussion Paper and the Thirteenth Finance Commission in their recently submitted report have suggested GST models which are quite different in many respects. This paper identifies these differences and argues that within the regime of taxation of goods and services in India environmental tax reform should also be incorporated to make the tax regime play a significant role in managing environment. The environment tax reforms will yield both a fiscal double dividend and an economic double dividend making the Indian economy pursue a path of sustainable development. |
| Keywords: | Taxes, environment |
| JEL: | H6 H11 H20 H23 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:2406&r=acc |
| By: | D K Srivastava; C Bhujanga Rao (Madras School of Economics) |
| Abstract: | This paper looks at the quality of forecasts/assessments made by some of the recent Finance Commissions for the shareable central taxes and own tax revenues of selected states. The Commissions covered under this analysis are Ninth to Twelfth Finance Commissions. It is observed that while direct taxes are underestimated in general, revenues from indirect taxes partially Union excise duties and custom duties have been over estimated. In respect of states, four selected states viz., Andhra Pradesh, Gujarat, Orissa and Assam are examined. While there is similarity between the approaches of Ninth, Tenth and Twelfth Finance Commissions in regard to middle and high income states, the Eleventh Finance Commission required that they raise tax revenues higher than what they were able to achieve. |
| Keywords: | Central Taxes, Own Tax Revenues, Finance Commission |
| JEL: | H2 H5 H7 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:financ:2407&r=acc |
| By: | Dima, Bogdan; Cuzman, Ioan; Dima (Cristea), Stefana Maria; Şărămăt, Otilia |
| Abstract: | The issuance of the European Union Regulation (EC) 1606/2002 and the 2007 adoption of the Markets and Financial Instruments Directive in Romania determined us to sett the goal of the present study at investigating the impact of public information disclosure on market values in the case of the Romanian companies listed on Bucharest Stock Exchange. Our focus is mainly on comparing the value relevance of Internet disclosed information provided by annual and interim financial reports and other non-financial news in the decision making process of investors. Consistent with the literature, we anticipate a positive and significant incremental relevance of such information items, even if an important non-uniformity of prices’ adjustments can be expected. In order to have a benchmark for our results, we compare these with the ones specific to a more developed market, the Madrid Stock Exchange. Empirical tests support our research hypothesis according to which there will be a relative incremental value of a higher volume and a better quality of information, reflecting prices’ overreactions even in the case of a market with imperfect trading mechanisms. |
| Keywords: | KEY WORDS Disclosure; Valuation; Bucharest Stock Exchange; Madrid Stock Exchange |
| JEL: | D81 D83 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27169&r=acc |