nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2013‒12‒06
nine papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Effects of territorial and worldwide corporation tax systems on outbound M&As By Feld, Lars P.; Ruf, Martin; Scheuering, Uwe; Schreiber, Ulrich; Voget, Johannes
  2. Politiques de R&D, Taxe Carbone et Paradoxe Vert By Grimaud, André; Neubauer, Mauricio; Rougé, Luc
  3. The influence of financial constraints and real options on corporate investment decisions By Ekaterina Kuzmicheva; Kirill Kuzmichev
  4. On the Pigouvian Tax Rule in an Open Economy: Opening the Gate to the Eco-industry By Idrissa Sibailly
  5. Financial stability: the role of the Federal Reserve System By Thomas C. Baxter, Jr.
  6. Taxes, agglomeration rents and location decisions of firms. By Crabbé, Karen; De Bruyne, Karolien
  7. Revenue autonomy preference in German state parliaments By Heinemann, Friedrich; Janeba, Eckhard; Moessinger, Marc-Daniel; Schröder, Christoph
  8. Intellectual Capital Investments: Evidence from Panel Var Analysis By Iuliia Naidenova; Petr Parshakov
  9. Financial architecture and corporate performance: evidence from Russia By Maria Kokoreva; Anastasia Stepanova

  1. By: Feld, Lars P.; Ruf, Martin; Scheuering, Uwe; Schreiber, Ulrich; Voget, Johannes
    Abstract: Repatriation taxes reduce the competitiveness of multinational firms from tax credit countries when bidding for targets in low tax countries. This comparative disadvantage with respect to bidders from exemption countries violates ownership neutrality, which results in production inefficiency due to second-best ownership structures. This paper empirically estimates the magnitude of these effects. The abolishment of repatriation taxes in Japan and in the U.K. in 2009 has increased the number of acquisitions abroad by Japanese and British firms by 31.9% and 3.9 %, respectively. A similar policy switch in the U.S. is simulated to increase the number of U.S. cross-border acquisition by 17.1 %. We estimate the yearly gain in efficiency to be around 525 million dollar due to the Japanese reform and 13.5 million dollar due to the U.K. reform. Simulating such a reform for the U.S. results in a yearly efficiency gain of 1134 million dollar. --
    Keywords: international mergers and acquisitions,business taxation,repatriation taxes,ownership neutrality
    JEL: H25 G34
    Date: 2013
  2. By: Grimaud, André; Neubauer, Mauricio; Rougé, Luc
    Abstract: We study an economy in which a final good is produced by two sectors. One uses a non-renewable and polluting resource, the other a renewable and clean resource. A specific type of research is associated to each sector. The public authorities levy a carbon tax and simultaneously subsidize both research sectors. We study the impact of such a policy scheme on the rate of resource extraction and emissions. The subsidy to research in the clean sector goes in the opposite direction of the effects of the carbon tax. If the tax creates a green paradox, the subsidy moderates it; if the tax slows down resource extraction, then the subsidy generates a green paradox
    Keywords: carbon tax, directed technical change, green paradox, R&D policy
    JEL: O32 O41 Q20 Q32
    Date: 2013–11
  3. By: Ekaterina Kuzmicheva (National Research University Higher School of Economics (Nizhny Novgorod, Russia)); Kirill Kuzmichev
    Abstract: This paper presents evidence of the negative combined effect of financial constraints and real options on corporate investment. Using panel data on public companies functioning in developed countries, the authors prove that with increasing uncertainty surrounding a firm, the real options effect increases the influence of financial constraints on investment. To this end we have found the threshold value of the option multiple, which switches the uncertainty regimes from relatively high to relatively low, and we have constructed an index of financial constraints.
    Keywords: investment decisions; index of financial constraints; real options to delay
    JEL: C12 C23 C24 D22
    Date: 2013
  4. By: Idrissa Sibailly (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, LEI - Laboratoire d'Economie Industrielle - Centre de Recherche en Économie et STatistique (CREST))
    Abstract: This note investigates the impact of (international) technology transfer on optimal pollution taxation. To use a patented pollution abatement technology, the polluters subject to the emissions tax only pay fixed license fees to an (international) eco-industry (whose profits are shared among national and foreign suppliers). The second-best emissions tax is shown to decrease as the exogenous share of imported technology increases. When the domestic polluting industry is imperfectly competitive, this tax is always lower than the marginal damage. In contrast, when the polluting industry is perfectly competitive, the second-best emissions tax is lower than the marginal damage only in the case of incoming technology transfer. If the technology is transferred domestically, the second-best emissions tax is equal to the marginal damage. These results contrast with the literature on the impact of market power in the eco-industry on optimal policy design, initiated by David and Sinclair-Desgagné (2005).
    Keywords: Pigouvian Taxes, Eco-Industry, Technology Transfer, International Trade
    Date: 2013–11–29
  5. By: Thomas C. Baxter, Jr.
    Abstract: Remarks at the Future of Banking Regulation and Supervision in the EU Conference, Frankfurt, Germany.
    Keywords: European Central Bank ; Banks and banking, Central ; Federal Reserve System ; Federal Reserve Act ; Financial institutions - Law and legislation ; Financial Regulatory Reform (Dodd-Frank Act) ; Financial stability ; Financial crises
    Date: 2013
  6. By: Crabbé, Karen; De Bruyne, Karolien
    Abstract: The goal of this paper is to analyse the individual impact of tax rates and agglomeration rents as well as their interaction on location decisions of manufacturing firms within Belgium. Theoretically, both location determinants may weaken each other’s impact. Using a unique 10-year dataset concerning the number of newly setup firms at the sector level for 43 Belgian districts, we show that local effective tax rates have a negative impact on location decisions. Moreover, location-specific supply-side agglomeration rents attract new firms and their impact appears to be even stronger for more spatially concentrated sectors. Finally, we show that a higher effective tax rate in a district does not necessarily deter new firms in more agglomerated districts, pointing to the existence of taxable location-specific agglomeration rents.
    Keywords: Taxes; agglomeration rents;
    Date: 2013
  7. By: Heinemann, Friedrich; Janeba, Eckhard; Moessinger, Marc-Daniel; Schröder, Christoph
    Abstract: Fiscal federalism in Germany is characterized by lacking sub-national tax autonomy and intensive fiscal equalization. Due to a sunset clause, the current equalization system has to be renegotiated by the year 2019. Against this backdrop, this contribution studies the reform preferences of members of state parliaments. The study makes use of a self-conducted survey among the members of all 16 German state parliaments. It tests to which extent the preferences of these veto players for tax autonomy and fiscal equalization are driven by states' self-interest, party ideology and individual characteristics. The results are helpful to understand the political-economic constraints of federal reforms. They indicate that besides the individual ideological position higher state wealth and lower debt levels are linked to larger reform support. Therefore, a promising new reform would have to address budgetary legacies like high pre-existing debt. --
    Keywords: fiscal equalization,tax competition,fiscal federalism
    JEL: H63 H74 H77
    Date: 2013
  8. By: Iuliia Naidenova (1National Research University Higher School of Economics. Laboratory of Investment Analysis and Department of Financial management); Petr Parshakov (2National Research University Higher School of Economics. Asset Pricing Department)
    Abstract: It is believed that investments in intellectual capital enable a company to create a competitive advantage that results in the ability to earn economic profits and increase company value. However, this influence is reciprocal: Companies that generate more money can invest more funds in intellectual capital. The aim of this study is to use vector autoregression (VAR) to analyze the return on investments for companies in tangible and intellectual assets. This instrument allows us to take into account both the lag effect and the mutual influence of intellectual capital components
    Keywords: vector autoregression, intellectual capital, return on assets, economic value added, investments, panel data
    JEL: C22 C33 G30 O30
    Date: 2013
  9. By: Maria Kokoreva (National Research University Higher School of Economics. Department of Finance, Corporate Finance Center); Anastasia Stepanova (National Research University Higher School of Economics. Department of Finance, Corporate Finance Center)
    Abstract: In this paper we study the performance effects of capital structure, ownership structure and corporate governance of Russian companies. To address the lack of research in corporate performance modeling in emerging markets we contribute to the literature by introducing a cluster analysis of the financial architecture and market performance of Russian companies. Our goal is to find out the most efficient and inefficient types of financial architecture in emerging markets. Using a sample of 52 of the largest Russian non-financial companies between 2005-2010 we demonstrate the existence of three sustainable types of financial architecture. Using cluster analysis we form clusters of companies in the pre-crisis period and then demonstrate the relationship between the type of financial architecture and the level of market performance
    Keywords: capital structure, ownership structure, emerging markets, performance
    JEL: G32 G34
    Date: 2013

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