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on Accounting and Auditing |
| By: | Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez) |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:uai:wpaper:wp_029&r=acc |
| By: | Cici, Gjergji; Kempf, Alexander; Sorhage, Christoph |
| Abstract: | We are the first to show that financial advisors generate tangible benefits for their clients in the form of useful tax advice. Investors who purchase mutual funds through financial advisors exhibit a stronger tendency of avoiding taxable distributions than those who do not. Our calculations imply that this tendency could generate after-tax returns that are higher by 63 basis points per year, on average. The benefits from financial advice increase when investors face large and hard to predict tax liabilities and pay more for advice. Evidence from December distributions is consistent with financial advisors also helping clients with tax-loss selling. -- |
| Keywords: | Mutual funds,Taxable fund distributions,Financial advisors,After-tax returns |
| JEL: | D14 G11 G24 H24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfrwps:1209r2&r=acc |
| By: | Christopher Reicher |
| Abstract: | This paper provides a set of detailed estimated fiscal reaction functions for a panel of twenty industrialized countries, and it discusses commonalities and differences with regard to systematic fiscal policies across countries. In general, the countries in the panel adjust tax revenues strongly in response to the public debt, and they adjust tax revenues and transfer payments, but, interestingly, not tax rates, strongly in response to output fluctuations. Some countries such as Germany appear to adjust government consumption and investment relatively strongly in response to the public debt, while the United States adjusts capital tax rates relatively strongly. In general, an increased emphasis in the theoretical literature on the effects of procyclical tax revenues and countercyclical transfer payments as automatic stabilizers may be warranted |
| Keywords: | Fiscal policy, fiscal rule, deficits, taxes, government purchases, transfer payments |
| JEL: | E62 E63 H20 H62 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1850&r=acc |
| By: | Kunihiko Konishi (Graduate School of Economics, Osaka University) |
| Abstract: | This note reexamines the growth effects of commodity taxation and a manufacturing subsidy. By incorporating endogenous labor supply into a variety expansion model following Grossman and Helpman (1991), we derive new results. First, if households consider leisure to be important, an increase in the commodity tax rate can decrease the growth rate in the short run. Second, a small elasticity of substitution and a small manufacturing subsidy halt economic growth. Third, when the elasticity of substitution is small and sustained growth is possible, a decrease in the subsidy raises the short-run growth rate and decreases the long-run growth rate. |
| Keywords: | Commodity taxation, Subsidy, Labor supply, Endogenous growth |
| JEL: | E62 O41 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1322&r=acc |
| By: | Alesia Kalbaska |
| Abstract: | This paper analyzes the evolution of the banking system sensitivity to cross-border contagion over the period of 2006-2011. The study is performed on the basis of the BIS data on crossborder exposures and the Bankscope data on Tier 1 capital of 20 banking systems (Australia, Austria, Belgium, Canada, Finland, France, Germany, Greece, India, Ireland, Italy, Japan, the Netherlands, Portugal, Spain, Sweden, Switzerland, Turkey, the UK and the US). Since the European sovereign debt crisis took a decisive turn at the end of 2009, markets started looking at its main protagonists - so called PIIGS (Portugal, Ireland, Italy, Greece and Spain) - with a lot of anxiety. However, unexpectedly, the analysis of the data shows that a single failure among PIIGS could be absorbed by the network in 2011. Nevertheless, multiple initial failures (especially combinations including Italy and/or Spain) could be more dangerous. The simulation results reveal that the resilience of banking systems to contagion risks tends to improve over the years. The most systemically important countries are those of the US, the UK, France and Germany. Besides, a shock to the US is capable of destroying the UK banking system already in the ?rst round, whereas the UK would not lead to the failure of the US banking system even after all rounds of contagion. The results also show that the banking systems of the US, Turkey and Finland are completely immune to contagion effects. At the same time, there exist considerable risks for Switzerland and Ireland as their banking systems default also with high recovery rates. |
| Keywords: | contagion, Furfine algorithm, stress testing, PIIGS |
| JEL: | F34 F37 G01 G15 G21 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:680&r=acc |
| By: | Geoffrey G. Jones (Harvard Business School, General Management Unit); Christina Lubinski (German Historical Institute) |
| Abstract: | This working paper examines the growth of corporate environmentalism in the West German chemical industry between the 1950s and the 1980s. It focuses on two companies, Bayer and Henkel and traces the evolution of their environmental strategies in response to growing evidence of pollution and resulting political pressures. Although German business has been regarded as pioneering corporate environmentalism, this study reveals major commonalities between the German and American chemical industries until the 1970s, when the two German firms diverged from their American counterparts in using public relations strategies not only to contain fallout from criticism, but also as opportunities for changes in corporate culture. The working paper finds no evidence for variety of capitalism explanations why German firms should have been early in their sustainability strategies, partly because of the importance of regional as opposed to national influences, but the study is supportive of organizational sociology theories which have identified the importance of visibility in corporate green strategies. |
| Keywords: | environmental strategies, corporate responsibility, sustainability, chemical industry, detergents, Germany |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:14-018&r=acc |
| By: | Ansgar Belke |
| Abstract: | Small and medium size enterprises (SMEs) of southern euro area economies (e.g. Italy, Spain) pay significantly higher borrowing rates than their peers of the core (e.g. Germany, France) and this divergence is widening. It is argued that severe market failures prevent SMEs in southern euro area countries from access to key inputs, in particular access to finance. This paper makes an assessment of feasible options to improve finance access of SMEs, available to EU institutions as well as to the ECB in the context of its price stability mandate. Because of nonnegligible moral hazard issues, the paper is sceptical about a stronger involvement of the ECB in the (indirect) financing of SMEs through the securitisation of banks`loans or their use as collateral for monetary policy operations. The paper concludes with some proposals for extending finance access of SMEs, including through mutual guarantee institutions along the lines recently pursued by the European Investment Bank. |
| Keywords: | ECB; financial crisis; bank-firm relationships; credit guarantee schemes; monetary policy transmission; small business finance |
| JEL: | E23 E51 G21 O16 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0430&r=acc |