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on Accounting and Auditing |
| By: | Palea Vera (University of Turin) |
| Abstract: | Using a sample of Italian firms, I investigate whet her separate financial statements are useful to capital market investors and IFRS are more value-relevant than domestic GAAP. I find significant differences in value-relevance between Italian GAAP and IFRS, with IFRS being more informative than Italian GAAP. However, while results are robust for book value, they provide mixed evidence on net income. I also investigate the value-relevance of separate financial statements under IFRS relative to consolidate financial statements and I find that the former are more value-relevant than the latter. Overall, this study provides evidence supporting the choice of adopting IFRS for separate financial statements. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201309&r=acc |
| By: | James Alm (Department of Economics, Tulane University) |
| Keywords: | property tax, state and local finance, assessment, tax base elasticity |
| JEL: | H2 H7 R3 R5 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:1307&r=acc |
| By: | James Alm (Department of Economics, Tulane University); Robert D. Buschman (Fiscal Research Center, Andrew Young School of Policy Studies, Georgia State University); David L. Sjoquist (Department of Economics, Georgia State University) |
| Keywords: | property tax, state and local finance, assessment, tax base elasticity |
| JEL: | H2 H7 R3 R5 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:1308&r=acc |
| By: | James Alm (Department of Economics, Tulane University) |
| Abstract: | Taxpayers face well-known and well-identified individual motivations in their compliance decisions, motivations that originate with the standard economic model of tax evasion in which financial incentives are shaped by audit, penalty, and tax rates. However, there is growing evidence that these individual incentives, while important, are not always decisive. Individuals do not always behave as the selfish, rational, self-interested individuals portrayed in the standard neoclassical paradigm, but rather are often motivated by many other factors that have as their main foundation some aspects of social norms, morality, altruism, fairness, or the like, factors that I broadly and no doubt imprecisely lump together as group motivations. I argue that the compliance puzzle can be explained, at least in part, by expanding the standard analysis of individual compliance behavior to incorporate the important ways in which individual decisions are shaped by group motivations. I also provide empirical and experimental evidence to support these arguments, and, I suggest – and predict – some promising lines of future research. |
| Keywords: | tax evasion, behavioral economics, experimental economics |
| JEL: | H2 H26 D03 C9 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:1309&r=acc |
| By: | James Alm (Department of Economics, Tulane University); Yongzheng Liu (Department of Economics, Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | In the late 1990s, China enacted a rural tax reform known as the "Tax-for-Fee Reform" (TFR), largely driven by a desire to address farmers' complaints about their perception of a heavy and regressive tax burden. This paper examines the impact of the TFR on inequality in rural villages in China. Our results suggest an effective role of the TFR in reducing inequality within villages. Its impact on a consumption-based measure of inequality took effect immediately; its impact on per capita household income inequality took somewhat longer. Our results also suggest that it is "rich" and/or "coastal" villages that exhibited a significant reduction of inequality from the TFR, while "poor" and/or "inland" villages experienced no significant changes in inequality from the reform. |
| Keywords: | tax-for-fee reform, inequality, rural China |
| JEL: | H7 I2 I3 O1 O5 P3 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:1304&r=acc |
| By: | James Alm (Department of Economics, Tulane University); Yongzheng Liu (Department of Economics, Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | China enacted a rural tax reform – the "Tax-for-Fee Reform" (TFR) – in the late 1990s. A crucial but unanswered question is whether this reform improved farmers' welfare in rural areas. This paper uses village-level survey data from the Chinese Household Income Project in order to examine the effect of the TFR on farmers' direct and indirect welfare. We find no evidence that the direct welfare effects improved farmer's net income. In contrast, the reform appears to have reduced the villages' financing capacity, and hence to have lowered their overall expenditures. These indirect effects have had significant negative impacts on farmers' welfare. |
| Keywords: | tax-for-fee reform, inequality, rural China |
| JEL: | H7 I2 I3 O1 O5 P3 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:tul:wpaper:1305&r=acc |
| By: | doğru, bülent |
| Abstract: | The goal of this study is to test the implication of optimal seigniorage theory that in the long run higher tax rates are associated with higher inflation rates and higher nominal interest rates. For this purpose, we examine the long run relationship between nominal interest rates, inflation and tax revenue using time series dataset for Turkish Economy for the period 1980-2011. We estimate the Mankiw’s (1987) optimal seigniorage model for Turkish Economy with the cointegration and vector error correction methods (VECM). According to econometric result, in long run there is a causality relationship from inflation and tax revenue to nominal interest rates. However, in short run we could not find any evidence that support a causality from inflation and tax revenue to nominal interest rates. |
| Keywords: | Seigniorage, Inflation Tax, Turkish Economy, Error Correction Model, Cointegration Analysis. |
| JEL: | E40 E60 E62 |
| Date: | 2013–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:45538&r=acc |
| By: | Palea Vera (University of Turin) |
| Abstract: | The European Regulation 1606/2002 has required European firms listed on the European stock markets to prepare, starting from 2005, their consolidated financial statements according to the international accounting standards IAS/IFRS. The purpose of such a regulation is to ensure a high degree of transparency and comparability of financial statements and, hence, an efficient functioning of the European capital market. This paper investigates whether such a purpose can be considered as reached by focusing on the firms’ cost of capital. It shows that early evidence documents beneficial effects from the IAS/IFRS adoption, even though such effects vary due to differences still persisting in the European countries’ institutional frameworks and firms’ incentives. The paper also makes some suggestions for future research and policy-making discussion |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201310&r=acc |
| By: | Monda, Barbara; Giorgino, Mrco |
| Abstract: | In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value. Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure. By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value. |
| Keywords: | Corporate Governance, Corporate Governance Index, firm value |
| JEL: | G30 G32 G34 |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:45422&r=acc |