nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒06‒28
six papers chosen by
Alexander Harin
Modern University for the Humanities

  1. IFRS and the need for non-financial information By Tristan Boyer; Elena Chane-Alune
  2. Rates of return and early retirement disincentives: Evidence from a German pension reform By Lüthen, Holger
  3. Sunk Costs and the Measurement of Commercial Property Depreciation By W. Erwin Diewert; Kevin J. Fox
  4. Did the EBA Capital Exercise Cause a Credit Crunch in the Euro Area? By J-S. Mésonnier; A. Monks
  5. Capital structure and financing decisions of agricultural cooperatives: Spanish evidence By Mateos-Ronco, Alicia; Lajara-Camilleri, Natalia
  6. Fiscal consolidation strategy: An update for the budget reform proposal of march 2013 By Cogan, John F.; Taylor, John B.; Wieland, Volker; Wolters, Maik Hendrik

  1. By: Tristan Boyer; Elena Chane-Alune
    Abstract: We aim at giving a general view of the context in which appears the latest
    Keywords: Corporate Governance, IFRS, Financial information, Non-Financial information
    JEL: G30 G14 M41
    Date: 2014–06–16
  2. By: Lüthen, Holger
    Abstract: To counteract the financial pressure emerging in aging societies, statutory pay-as-you-go pension schemes are undergoing fundamental reforms in many Western countries. Starting with cohort 1937, Germany introduced permanent pension deductions for early retirement. This paper examines the evolution of the profitability of pension contributions against the background of this reform for cohorts 1935-1945. I measure the profitability with the internal rate of return (IRR) and use high quality administrative data. For men the IRR declines from 2.4% to 1.2% and for women from 5.2% to 3.7%. The results suggest that the deductions introduced by the reform only cause some part of this trend. The majority of the trend, about 75%-80%, is caused by increased pension contributions. --
    Keywords: pensions,reform,early retirement,disincentives,pay-as-you-go,rates of return,Germany
    JEL: D02 D04 D14 D91 H55
    Date: 2014
  3. By: W. Erwin Diewert (University of British Columbia and School of Economics, Australian School of Business, the University of New South Wales); Kevin J. Fox (School of Economics, Australian School of Business, the University of New South Wales)
    Abstract: This paper develops a new framework for measuring prices and quantities of commercial properties. In particular, it addresses problems associated with obtaining separate estimates for the land and structure components of a property. A key contribution is to address the problem of estimating structure depreciation taking into account the fixity of the structure. We find that structure depreciation is determined primarily by the cash flows that the property generates rather than physical deterioration of the building.
    Keywords: Property price indexes, net operating income, discounted cash flow, System of National Accounts, Balance Sheets, land and structure prices, goodwill amortization, intangible assets
    JEL: C2 C23 C43 D12 E31 R21
    Date: 2014–06
  4. By: J-S. Mésonnier; A. Monks
    Abstract: We exploit a unique monthly dataset of bank balance sheets to document the lending behaviour of euro area banks that were subject to the EBA's 2011/12 Capital Exercise. This exercise was announced in October 2011 and required large European banking groups to meet a higher Tier 1 capital ratio by June 2012, after accounting for an unprecedented temporary buffer against exposure to sovereign debt. Controlling for bank characteristics and demand at the level of country of residence, we find that banks in a banking group that had to increase its capital by 1 percent of risk-weighted assets tended to have annualized loan growth (over the 9 month period of the exercise) that was between 1.2 and 1.6 percentage points lower than for banks in groups that did not have to increase their capital ratio. Looking at aggregate effects at the country level, we also find that banks that did not have to recapitalize did not substitute for more constrained lenders. Our results are of particular relevance for the decisions facing the new European Single Supervisor in advance of its Asset Quality Review due in November 2014.
    Keywords: bank capital ratios, credit supply, EBA, euro area, asset quality review.
    JEL: C21 E51 G21 G28
    Date: 2014
  5. By: Mateos-Ronco, Alicia; Lajara-Camilleri, Natalia
    Abstract: The study of the financial structure is a complex and recurrent line of research in the field of corporate finance. Increasing the understanding of the financial structure and its implications on corporate governance is the starting point for improving the access to external financing and reduce transaction costs as to optimize internal funding policies. There is no universal theory of financial structure although partial theories have arisen from empirical studies, attempting to relate structure with different variables. However, at the micro level, the impact of different types of funding could vary according to the economic situation or the type of company. While financial theory has traditionally been based on using internal indicators of the companies as explanatory variables of their financial structure, the empirical evidence reveals that this structure varies over time as a result of macroeconomic conditions of the environment in which they are immersed. This paper provides empirical evidence on the financial structure of cooperatives in Spain and its possible relationship with different variables through a regression model, particularizing the study to agricultural cooperatives. The use of accounting data in different time horizons eases the analysis of the effect of macroeconomic conditions and financial constraints on the determinants of the capital structure of these entities.
    Keywords: agricultural cooperatives, capital structure, debt, macroeconomic conditions, regression, Agribusiness, Agricultural Finance, Marketing, Risk and Uncertainty, Q13, G32, M41,
    Date: 2014–04
  6. By: Cogan, John F.; Taylor, John B.; Wieland, Volker; Wolters, Maik Hendrik
    Abstract: Recently, we evaluated a fiscal consolidation strategy for the United States that would bring the government budget into balance by gradually reducing government spending relative to GDP to the ratio that prevailed prior to the crisis (Cogan et al, JEDC 2013). Specifically, we published an analysis of the macroeconomic consequences of the 2013 Budget Resolution that was passed by the U.S. House of Representatives in March 2012. In this note, we provide an update of our research that evaluates this year’s budget reform proposal that is to be discussed and voted on in the House of Representative in March 2013. Contrary to the views voiced by critics of fiscal consolidation, we show that such a reduction in government purchases and transfer payments can increase GDP immediately and permanently relative to a policy without spending restraint. Our research makes use of a modern structural model of the economy that incorporates the long-standing essential features of economics: opportunity costs, efficiency, foresight and incentives. GDP rises because households take into account that spending restraint helps avoid future increases in tax rates. Lower taxes imply less distorted incentives for work, investment and production relative to a scenario without fiscal consolidation and lead to higher growth. --
    Date: 2013

This nep-acc issue is ©2014 by Alexander Harin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.