nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2011‒01‒16
ten papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Change-over within little scope: On the decision neutrality of recent tax reform proposals By Siemers, Lars-H. R.; Zöller, Daniel
  2. Capital taxation during the U.S. Great Depression By Ellen R. McGrattan
  3. Tax Competition and Migration: The Race-to-the-Bottom Hypothesis Revisited By Assaf Razin; Efraim Sadka
  4. Preparing for Basel IV : why liquidity risks still present a challenge to regulators in prudential supervision (II) By Ojo, Marianne
  5. A Set of Limited Asian Pacific Corporate Governance Standards After Financial Crisis, Corporate Scandals and Manipulation By Dinh, Tran Ngoc Huy
  6. The Summarized Evaluation of The US and Latin America Corporate Governance Standards After Financial Crisis, Corporate Scandals and Manipulation By Tran Ngoc Huy, DInh
  7. On the Crowding-Out Effects of Tax-Financed Charitable Contributions by the Government By Alan Krause
  8. The Effects of Taxation on Migration: Some Evidence for the ASEAN and APEC Economies By Edda Claus; Iris Claus; Michael Dörsam
  10. The Use of International Standards in Technical Regulation By Barbara Fliess; Frédéric Gonzales; Jeonghoi Kim; Raymond Schonfeld

  1. By: Siemers, Lars-H. R.; Zöller, Daniel
    Abstract: Political economy aspects make progressive income taxation and taxation of capital income imperative in practise. International tax competition and profit shifting, in turn, put pressure on corporate and capital taxes. Hence, the scope for a politically feasible change-over to a status of improved taxation is little. We provide an extended dynamic general equilibrium model and analyze politically feasible recent reform proposals referring neutrality. We then propose an alternative tax reform that, in contrast to these proposals, guarantees even growth neutrality, without necessarily jeopardizing political feasibility.
    Keywords: Dynamic general equilibrium models; taxation; tax reform; decision neutrality; ACE; dual income tax
    JEL: H21 H25 H24 D58
    Date: 2011–01–06
  2. 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.
    Date: 2010
  3. By: Assaf Razin; Efraim Sadka
    Abstract: The literature on tax competition with free capital mobility cites several reasons for the race-to-the-bottom hypothesis in the sense that tax competition may yield significantly lower tax rates than tax coordination. With a fixed (exogenously given) population that can move from one fiscal jurisdiction to another, the Tiebout paradigm suggests that tax competition among these jurisdictions yields an efficient outcome, so that there are no gains from tax coordination. The Tiebout paradigm considers the allocation of a given population among competing localities. Our model of international tax-transfer and migration competition among host countries deviates from the Tiebout paradigm in that the total population in the host countries and its skill distribution are endogenously determined through migration of various skills. As a result, competition needs not be efficient. This paper suggests that when a group of host countries faces an upward supply of immigrants, tax competition does not indeed lead to a race to the bottom; competition may lead to higher taxes than coordination.
    JEL: F2 H2
    Date: 2011–01
  4. By: Ojo, Marianne
    Abstract: Whilst the predecessor (Part I) to this paper addresses criticisms and challenges which have arisen in response to recent Basel Committee's initiatives aimed at addressing capital and liquidity standards, the present paper highlights further measures which are being introduced by the Basel Committee to address such criticisms and challenges. As well as presenting and drawing attention to proposals which could serve as means of addressing challenges presented by liquidity risks, Part I of the paper concludes with the result that market based regulation is an essential and vital tool in the Basel Committee's efforts to address some of the challenges presented by liquidity risks. The present paper highlights the Basel Committee's acknowledgement of this conclusion. Furthermore, it draws attention to other areas which are considered to constitute fertile substrates for purposes of future research. This paper will also illustrate why the potential of banking regulations and disclosure requirements to impact risk taking levels is not only dependent on certain factors such as the dissemination of information to appropriate recipients, appropriate volume of disseminated information, when to disseminate such information, but also on other factors such as ownership structures and effective corporate governance measures aimed fostering monitoring, supervision and accountability.
    Keywords: liquidity risks; systemic risks; capital; standards; Basel III; moral hazard; disclosure; information; Liquidity Coverage Ratio (LCR); Net Stable Funding Ratio (NSFR); accountability; corporate governance
    JEL: K2 E32 G3 D8
    Date: 2010–12–30
  5. By: Dinh, Tran Ngoc Huy
    Abstract: Up to now there are some researches done in the field of giving a framework of implementation of corporate governance standards after corporate scandals, negative market manipulation during the post-crisis periods. This paper mainly concentrates on empirical research for findings in this field. First, it comes up with four (4) groups of findings on corporate governance subjects in the post-crisis and post-scandal time. It found out that companies in these periods have certain corporate governance issues such as how to better organize an information disclosure system. Second, it compared and identified differences in current and latest corporate governance standard system in four (4) countries in Asian Pacific region: Japan, Australia, Philippines and Korea. Third, this paper provide with a short summary of evaluation of current corporate governance principles in these four countries which can enable corporations to seek and to compare to their current codes. Last but not least, it aims to realize a limited general set of standards of Asian Pacific corporate governance and give proper recommendations to relevant governments and organizations.
    Keywords: Corporate governance structure; CEO; Chair; principles; Board of Directors; Compliance; Internal audit
    JEL: G30 M10
    Date: 2010–12–24
  6. By: Tran Ngoc Huy, DInh
    Abstract: There are many analytical papers and researches done in the field of examining and analyzing consequences of the Sarbanes Oxley Act (2002) and some done in the corporate governance in some Latin American countries. This paper chooses a different approach. First, it selects The US, Brazil and Chile, which represents for Latin American countries, as three (3) American countries to analyze their best suitable policies and corporate governance practices, in consideration of factors after crisis and scandals. Second, it aims to build a selected comparative set of standards for corporate governance system in the US and representative Latin American countries. Last but not least, this paper illustrates corporate governance standards that it might give proper recommendations to relevant governments and institutions in re-evaluating their current ones.
    Keywords: corporate governance standards; board structure; code of best practice; financial crisis; corporate scandals; market manipulation; internal audit
    JEL: G00 G30
    Date: 2011–01–05
  7. By: Alan Krause
    Abstract: An important question in the literature on charitable contributions is the extent to which tax-financed contributions by the government crowd out private contributions. This paper examines a simple model of charitable contributions in which there exist both warm-glow and public good motives for giving, but where the warm-glow motive is competitive in the sense that individuals evaluate their own contribution relative to that of their peers. It is shown that the competitive element of the warm-glow motive may exacerbate or attenuate the crowding-out effect, depending upon certain preference and income parameters. However, as the warm-glow motive for giving becomes purely competitive, crowding out is exacerbated and is almost dollar-for-dollar.
    Keywords: Charitable contributions, warm-glow, crowding out, public goods
    JEL: H23 H41
    Date: 2011–01
  8. By: Edda Claus (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, and IIIS); Iris Claus (Inland Revenue and Centre for Applied Macroeconomic Analysis); Michael Dörsam (Universität Mainz)
    Abstract: This paper investigates the effects of taxation on migration. It develops a stylized, two country model to examine the impact of taxation on labor mobility. The theoretical prediction that taxation affects migration decisions is supported by some empirical evidence for the ASEAN and APEC economies. Average tax rates are found to have a larger impact on migration choices than marginal rates. Moreover, the results suggest that educated migrants are more responsive to taxation than migrants with no education. Average tax rates are most important for migrants with secondary education, while marginal rates have a greater influence on the decisions of migrants with tertiary education than secondary educated migrants. The finding that taxation affects migration decisions, in particular of educated migrants, has important policy implications.
    Keywords: International migration, taxation
    JEL: F22 H24 H31
    Date: 2010–12
  9. By: Valentin – Stelian BADESCU (Romanian - German University, Sibiu)
    Abstract: In Romania, the introduction of internal audit is relatively recent fall in the overall effort to modernize financial management in both private and public sectors. Also, note that the introduction of public sector internal audit is not transposed in the Romanian economy features of the acquis communitarian, for the simple reason that there is no internal audit. At the same time, there is no legal framework and procedures to adapt to one of our member countries, since it does not correspond to current concepts of internal auditing and internal controls.
    Keywords: Internal audit, public law, management control systems
    JEL: M42
    Date: 2010–08
  10. By: Barbara Fliess; Frédéric Gonzales; Jeonghoi Kim; Raymond Schonfeld
    Abstract: To what extent are governments drawing on relevant international standards in their technical regulations, as mandated by the WTO TBT Agreement? A number of sources of data exist, including electronic databases maintained by governments, but they cannot be used to obtain systematic, international perspective, because there is no harmonised international format and they are incomplete. This study develops an analytical frame for collecting and presenting data on the use of standards in regulation in any sector, as a basis for effective monitoring of the actual extent of use of international standards in regulation and for empirical analysis of the trade effects. This template is then applied to collect and report for five OECD countries detailed factual information on technical regulations, their objectives and standards use in three sectors – electrical household appliances, equipment for natural gas and telephony. The research finds that core government policies confirm the receptiveness of policy and regulation to the use of international standards. It illustrates the difficulty of identifying, for a given sector, which standards are used, for which regulatory objectives, and with which links – direct or indirect – to standards used internationally. The data collected in the harmonised format of the template show how transparency of data on standards use could be improved. Improved transparency can facilitate efforts to improve harmonisation where this can help to remove barriers to trade. Explicit identification of regulatory objectives can ensure that attempts to promote wider harmonisation take account of those objectives. Also, the range of non-national standards actually used as a basis for technical regulation is greater than sometimes acknowledged, and wider knowledge of their availability and use could be helpful to regulators. Another benefit of transparency is that factual presentations of the use of standards in technical regulations provide a source of rich and accurate data for use in empirical work on how regulatory use of standards influences international trade.
    Keywords: Korea, Mexico, Canada, European Union, United States, transparency, natural gas, standards, WTO, technical barriers to trade, technical regulations, harmonisation, international standards, telephones, Agreement on Technical Barriers to Trade, household appliances
    Date: 2010–07–19

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