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on Accounting and Auditing |
| By: | Ojo, Marianne |
| Abstract: | Why should differences between regulatory and accounting policies be mitigated? Because mitigating such differences could facilitate convergence – as well as financial stability. The paper “Fair Value Accounting and Procyclicality: Mitigating Regulatory and Accounting Policy Differences through Regulatory Structure Reforms and Enforced Self Regulation” illustrates how the implementation of accounting standards and policies, in certain instances, have contrasted with Basel Committee initiatives aimed at mitigating procyclicality and facilitating forward looking provisioning. The paper also highlights how and why differences between regulatory and accounting policies could (and should) be mitigated. This paper focuses on how recent regulatory reforms – with particular reference to the Dodd Frank Act, impact fair value measurements. Other potential implications for accounting measurements and valuation, will also be considered. Given the tendencies for discrepancies to arise between regulatory and accounting policies, and owing to discrepancies between Basel III and the Dodd Frank Act, would a more imposing and commanding role for international standards not serve as a powerful weapon in harmonizing Basel III and Dodd Frank – whilst mitigating regulatory and accounting policy differences? |
| Keywords: | financial stability; OTC derivatives markets; counterparty risks; disclosure; information asymmetry; transparency; living wills; Volcker Rule; Basel III; Basel II; pro cyclicality; international auditing standards; Dodd Frank Act; fair values |
| JEL: | E02 D0 K2 D8 G01 E3 |
| Date: | 2012–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36149&r=acc |
| By: | Ojo, Marianne |
| Abstract: | Through a consideration of factors which have resulted in a more reduced role for the external auditor in certain jurisdictions – when compared to others, this paper will consider, as well as highlight why an enhanced awareness of the role of the external auditor in such jurisdictions will be vital in an increasingly globalised financial system. It will do so through a consideration of the current, past and future perceptions of external auditors’ roles – with particular reference to selected jurisdictions from Africa, Asia and Latin America. |
| Keywords: | external auditor; audits; regulation; financial; bank; fraud; error; financial statements; Brazil; Malaysia; Nigeria |
| JEL: | E02 K2 G2 D02 D8 |
| Date: | 2012–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36471&r=acc |
| By: | Feld, Lars P.; Heckemeyer, Jost H.; Overesch, Michael |
| Abstract: | This paper provides a quantitative review of the empirical literature on the tax impact on corporate debt financing. Synthesizing the evidence from 46 previous studies, we find that this impact is substantial. In particular, the tax rate proxy determines the outcome of primary analyses. Measures like the simulated marginal tax rate (Graham (1996a)) avoid a downward bias in estimates for the debt response to tax. Moreover, debt characteristics, econometric specifications, and the set of control-variables affect tax effects. Accounting for misspecification biases by means of meta-regressions, we predict a marginal tax effect on the debt ratio of 0.3. -- |
| Keywords: | capital structure,corporate income tax,meta-analysis |
| JEL: | G30 H32 F23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11075&r=acc |
| By: | Spengel, Christoph; Lazar, Sebastian; Evers, Lisa; Zinn, Benedikt |
| Abstract: | We trace back Romania's development to a low-tax country among the Member States of the European Union by analysing the major tax law changes in corporate taxation since 1992. We find that the significant reduction of the corporate income tax rate from 45% in 1992 to 16% since 2005 has not been accompanied by a comprehensive broadening of the corporate income tax base as prevalent in many longstanding Member States of the EU and the OECD. Our analysis is not limited to a comprehensive description of the development of corporate taxation in Romania, but goes on with a numerical analysis of the tax burdens at different periods of time which constitute milestones in the development of corporate taxation in Romania. For this purpose, we apply the European Tax Analyzer, which is a computer-based model firm approach. We find that the average company tax burden of the underlying model company has dropped significantly by almost 65% since 1992. Furthermore, our numerical analysis does not confirm the tax base broadening policy. As a result, Romania holds position two among the group of Central and Eastern European EU Member States. -- |
| Keywords: | corporate taxation,effective tax burden,transition economy,EU accession countries,tax reform,tax-rate-cum-base-broadening reform |
| JEL: | H22 H25 O38 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12003&r=acc |
| By: | Gumpert, Anna; Hines, James R.; Schnitzer, Monika |
| Abstract: | This paper analyzes the tax haven investment behavior of multinational firms from a country that exempts foreign income from taxation. High foreign tax rates generally encourage firms to invest in tax havens, though significant costs of reallocating taxable income dampen these incentives. The behavior of German manufacturing firms from 2002-2008 is consistent with this prediction: at the mean, one percentage point higher foreign tax rates are associated with three percentage point greater likelihoods of owning tax haven affiliates. This contrasts with earlier evidence for U.S. firms subject to home country taxation, which are more likely to invest in tax havens if they face lower foreign tax rates. Foreign tax rates appear to be unrelated to tax haven investments of German firms in service industries, possibly reflecting the difficulty they face in reallocating taxable income. -- |
| Keywords: | tax havens,multinational firms,tax avoidance,profit shifting,manufacturing FDI,service FDI |
| JEL: | H87 F23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdp1:201130&r=acc |
| By: | Niels Johannesen (Department of Economics - University of Copenhagen - University of Copenhagen); Gabriel Zucman (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | During the financial crisis, G20 countries compelled tax havens to sign bilateral treaties providing for exchange of bank information. Is it the end of bank secrecy? Exploiting a unique panel dataset, we study how the treaties affected bank deposits in tax havens. Our results suggest that most tax evaders did not respond to the treaties but that a minority responded by transferring their deposits to havens not covered by a treaty. Overall, the G20 tax haven crackdown caused a modest relocation of deposits between havens but no significant repatriation of funds: the era of bank secrecy is not yet over. |
| Keywords: | Tax havens ; Tax evasion |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00665054&r=acc |
| By: | Ivanyna, Maksym; von Haldenwang, Christian |
| Abstract: | Some countries fail to ensure that their citizens and businesses make an appropriate contribution to the financing of public tasks. But not all countries with a low tax ratio automatically fall into this cat-egory. This paper presents an approach to bridge the gap between probabilistic statements based on statistical analyses, and country-specific information. Rather than defining general across-the-board criteria, the approach accounts for different development levels and other influencing factors, such as regional patterns, non-tax revenue and governance. Findings on individual countries or groups of countries should put governments, donors and international organisations in a better position to decide on tax reform programmes and aid modalities. -- |
| Keywords: | tax system,tax ratio,governance,developing countries |
| JEL: | H20 H60 H27 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201210&r=acc |