nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2013‒04‒06
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Integrating Personal Expertise: A History of Japanese Audit Firms, 1965-2010 By Karube, Masaru; Fukukawa, Hironori
  2. Reporting on intangibles, a recent survey from Japan By Tadanori Yosano
  3. Einkommensteuertarife in der Bundesrepublik Deutschland und ihre Folgen für die Belastung ausgewählter Haushaltstypen By Alfred Boss; Hans Christian Müller; Axel Schrinner
  4. Fighting Multiple Tax Havens By Elsayyad, May; Konrad, Kai A.
  5. "Indirect Domestic Value Added in Mexico's Manufacturing Exports, by Origin and Destination Sector" By Gerardo Fujii-Gambero; Rosario Cervantes-Martínez

  1. By: Karube, Masaru; Fukukawa, Hironori
    Abstract: To examine empirically the knowledge integration process of professional expertise that individuals have in a professional firm, this paper examines the emergence and growth of four large audit firms (ShinNihon, Azusa, Tohmatsu, and ChuoAoyama) in Japan over a period from the mid- 1960s to 2010. Known as the Big Four, these firms.the product of a series of mergers between more than 70 audit firms.handled the vast majority of audit services for listed companies during this period. After the dissolution of ChuoAoyama in 2006, the remaining three audit firms have dominated the market. A longitudinal case study documents how these professional service firms were successful in providing nationwide services through mergers with domestic competitors and the provision of global services in alliance with large international firms, even though they did not sufficiently realize the systematic attainment of individual expertise. The historical account of this process suggests that the two driving forces underpinning the merger growth of the Big Four were strategic intent in (1) systematizing individual expertise and (2) establishing nationwide and global service networks in response to the increase in size and growing diversity and complexity of their client base. Finally, this paper discusses the knowledge tension between localized individual expertise and organizational knowledge in a global context.
    Date: 2013–03
  2. By: Tadanori Yosano (Graduate School of Business Administration, Kobe University)
    Abstract: This paper strives to explain why the Japanese Intellectual Asset-based Management (IAbM) report is more inclined for the SME-financial institution relationship with a detailed Japanese historical socioeconomic background. The Japanese Ministry of Economy, Trade and Industry (METI) first focus on the listed company-market actor relationship, however, the overlap between the IC information demand and supply was smaller than expected. This paper explains why there was the mismatch for IC information, and also addresses why non-listed SME IC information for financial institutions has been effective in IC disclosures with the previously shown empirical evidence. This paper also addresses why non-listed SME IC information for financial institutions has created some movement in the IC field by capturing main actors, such as METI, Organization for Small & Medium Enterprises and Regional Innovation, Japan (OSMERI), and other key IAbM supporters.
    Date: 2012–05
  3. By: Alfred Boss; Hans Christian Müller; Axel Schrinner
    Abstract: Facing the general election in 2013, the level of the income tax is a major issue of the economic policy debate in Germany. The paper presents data on the income tax burden in the period 1958–2012. The data refer to specific levels of real income as well as to specific levels of income in relation to the income on average. It turns out that the discretionary changes of the income tax rates since 1958 did not suffice to avoid an increase of the marginal tax rates for typical taxpayers. As to the average tax rates, the picture is a bit different; low income earners realized a small decrease of their tax rates if their real income did not rise
    Keywords: Marginal income tax rates in Germany, bracket creep, incentives to work
    JEL: H30
    Date: 2013–03
  4. By: Elsayyad, May; Konrad, Kai A.
    Abstract: This paper develops a competition theory framework that evaluates an important aspect of the OECD’s Harmful Tax Practices Initiative against tax havens. We show that the sequential nature of the process is harmful and more costly than a “big bang” multilateral agreement. The sequentiality may even prevent the process from being completed successfully. Closing down a subset of tax havens reduces competition among the havens that remain active. This makes their “tax haven business” more profitable and shifts a larger share of rents to these remaining tax havens, making them more reluctant to give up their “tax haven business”. Moreover, the outcome of this process, reducing the number of tax havens, but not eliminating them altogether, may reduce welfare in the OECD.
    Keywords: tax haven; harmful tax practices; bidding for haven inactivation
    Date: 2012
  5. By: Gerardo Fujii-Gambero; Rosario Cervantes-Martínez
    Abstract: As domestic exports usually require imported inputs, the value of exports differs from the domestic value added contained in exports. The higher the domestic value added contained in exports, the higher the domestic national income created by exports will be. In this case, exports will expand the domestic market. Therefore, exports will push economic growth in two ways: through their direct effect on aggregate demand, and through their effect on the domestic market. For these reasons, the estimate of the magnitude of the domestic value added contained in exports helps explain the capacity of exports to lead economic growth. Domestic exports may be classified as direct and indirect exports. Direct exports are the goods sold to other countries; indirect exports are the domestically produced inputs incorporated in direct exports. The distinction between direct and indirect exports leads to a distinction between direct and indirect domestic value added contained in exports. The income of the factors directly involved in the production of exports constitutes direct domestic value added; the income contained in domestically produced inputs incorporated into exports constitutes the indirect domestic value added. Therefore, the magnitude of indirect value added depends on the density of the domestic intersectorial linkages. The aim of this paper is to present an estimation of the domestic indirect value added contained in Mexico's manufacturing exports in two ways. The first derives from the fact that a direct exporting sector may be the vehicle through which other sectors export in an indirect way; this leads us to estimate the indirect value added contained in exports by sector of origin. The second refers to the destination of this indirect value added--that is, to the direct exporting sectors in which the value added contained in indirect exports of each sector appears. Based on the input-output table for Mexico (National Institute of Statistics and Geography–INEGI 2008), we estimate the domestic value added contained in inputs used to produce Mexican manufacturing exports. We show separately the domestic value added from maquiladora exports and from exports produced by the rest of the manufacturing sector. In order to distinguish the indirect value added in exports by sector of origin and destination of the intermediate inputs, we work with square matrices of indirect domestic value–added multipliers.
    Keywords: Domestic Value Added in Exports; Indirect Value Added; Indirect Value Added by Sector of Origin; Indirect Value Added by Sector of Destination
    JEL: C67 E01
    Date: 2013–03

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