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on Accounting and Auditing |
| By: | Abdelhakim Benali (LARTIGE - Laboratoire de Recherche en Technologie d'Information, Gouvernance et Entreprenariat - Faculté des Sciences Economiques et de Gestion de Sfax) |
| Abstract: | The goal of our research work is to show the effect of the presence of joint auditors (BIG4) and a few mechanisms of governance on the shareholders' confidence. We are trying to explore the relationship between its different variables in the French context during the period 2005-2010. The empirical results show a positive and significant relationship between, on the one hand, the presence of two auditors BIG4, the opinion of the auditors, the independence of the members of the audit committees and the boards of directors and the asset efficiency and the confidence of the shareholders of the counterpart. On the other hand, the audit fees, the collaboration period between the associate signatories, the size and the debts of the companies seem to have a negative and significant effect on the shareholders' confidence. |
| Keywords: | confidence; shareholders; effectiveness; joint auditors |
| Date: | 2013–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01054921&r=acc |
| By: | World Bank |
| Keywords: | Private Sector Development - Business Environment Banks and Banking Reform Private Sector Development - Competitiveness and Competition Policy Private Sector Development - Business in Development Finance and Financial Sector Development - Debt Markets |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16681&r=acc |
| By: | World Bank |
| Keywords: | Banks and Banking Reform Private Sector Development - Business Environment Private Sector Development - Competitiveness and Competition Policy Private Sector Development - Business in Development Finance and Financial Sector Development - Debt Markets |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16783&r=acc |
| By: | World Bank |
| Keywords: | Public Sector Corruption and Anticorruption Measures Private Sector Development - Business Environment Private Sector Development - Competitiveness and Competition Policy Private Sector Development - Business in Development Banks and Banking Reform Public Sector Development Finance and Financial Sector Development |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16682&r=acc |
| By: | Crass, Dirk; Licht, Georg; Peters, Bettina |
| Abstract: | This paper investigates the role intangible capital plays for economic growth in different sectors in Germany. It consists of two major parts. In the first part, we aim at measuring investment in intangibles at the sector level. We shed light on differences across sectors but also compare these figures with investment in physical capital and with investment in intangibles in the UK as European benchmark. The second part explores the role of intangible assets for stimulating growth at the sector level by performing growth accounting analyses. We find that German firms have boosted investments in intangible capital from 1995-2006 by 30%. Furthermore, results reveal differences in the investment patterns among the UK and Germany. In nearly all sectors investments in design and computerized information are larger in the UK. In contrast, German firms invest a higher proportion of gross output in R&D in all sectors, and advertising is also more common except for the sector trade & transport. Intangible assets have stimulated labour productivity growth in all sectors. The contribution varies between 0.17 (construction) and 0.59 (manufacturing) percentage points. In manufacturing, financial and business services innovative property capital is the most influential type of intangible capital for labour productivity, followed by economic competencies and computerized information. In all other sectors, economic competencies play the most prominent role for labour productivity growth. -- |
| Keywords: | intangible assets,economic growth,sector |
| JEL: | E22 O47 L60 L80 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14049&r=acc |
| By: | Francis A. Longstaff; Ilya A. Strebulaev |
| Abstract: | We study the relation between leverage and corporate tax rates using an extensive data set constructed from all corporate income tax returns filed with the IRS from 1926 to 2009. This data set includes financial statement data from millions of private and public corporations of all sizes. We show that corporate leverage has increased significantly over the past century. We find strong evidence that changes in corporate leverage are directly related to changes in corporate tax rates for all but the smallest firms. These results are robust to the inclusion of control variables for the costs of financial distress, corporate liquidity, and capital market and macroeconomic conditions. The adjustment of leverage to changes in corporate tax rates is slower for smaller firms facing financial constraints. We find that the capital structures of the smallest firms are driven much more by external shocks than is the case for larger firms. |
| JEL: | G32 G38 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20372&r=acc |
| By: | Evers, Maria Theresia; Finke, Katharina; Matenaer, Sebastian; Meier, Ina; Zinn, Benedikt |
| Abstract: | The German Accounting Law Modernization Act (BilMoG) represents a change in paradigm with regard to the traditionally close relationship between financial and tax accounting in Germany. At the same time, requirements on the disclosure of deferred taxes were revised considerably. We make use of these new disclosure provi-sions to disaggregate firms' deferred tax position and to analyze the components of temporary book-tax differences that add to the reporting gap in Germany. To this end, we apply a unique dataset of hand-collected information from individual financial statements for the fiscal year 2010. We find considerable differences between financial and tax accounting and observe that temporary book-tax differences are mainly associ-ated with mandatory differences in accounting for provisions. The scope and quality of tax-related disclosures vary substantially and the overall disclosure quality is low. In order to identify the determinants of the heterogeneity of disclosure quality, we con-struct an index for voluntary and mandatory disclosure of deferred tax information and conduct multivariate analyses to explain firms' disclosure decisions. We show that the recognition of deferred tax assets and liabilities on the face of the balance-sheet is sig-nificantly and positively related with disclosure quality in the notes to the financial statements. Further, our results suggest that larger firms are more likely to have high-quality tax disclosures and that high implementation costs could also explain the ob-served shortfalls in disclosure quality. Moreover, we find that different reporting incen-tives might apply if reporting on losses is assessed in isolation. We use these insights to derive implications for the discussion about whether and how to reform disclosure re-quirements under German GAAP. -- |
| Keywords: | book-tax conformity,book-tax differences,deferred taxes,disclosure quality,tax reporting |
| JEL: | H20 H25 K34 M41 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14047&r=acc |
| By: | Thomas Hemmelgarn (European Commission); Daniel Teichmann |
| Abstract: | The paper studies the link between corporate income tax reforms and domestic bank entities' financing decisions. We use a dataset of corporate income tax (CIT) reforms and estimate the effect of tax rate changes on leverage, dividend policies and earnings management of banks. The results suggest that taxation influences all three variables in the first three years after the reform. Leverage increases with the CIT rate. The reason is that the statutory CIT rate determines the value of the debt tax shield. A higher tax rate increases incentives to use debt finance when interest payments are deductible from the CIT base. The tax effects we find are statistically and economically significant but considerably lower than those found in previous research. Also, dividend pay-outs increase after an increase of CIT rates. This could indicate that banks actively manage their pay-out policies around tax reforms and adjust their capital structure with changes in dividends. Furthermore, banks increase loss loan reserves in anticipation of tax rate cuts since losses become less valuable with lower CIT rates. In the context of the current regulatory reform in the financial sector, which focuses strongly on improving equity ratios of banks, our results suggest that future tax policies should focus on eliminating the favourable treatment of debt for banks. The reason is that this distortion at least partly undermines the regulatory objectives of increasing (regulatory) capital. |
| Keywords: | Corporate income tax, tax reform, debt-equity bias, leverage, banks. |
| JEL: | G21 H25 H32 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:tax:taxpap:0037&r=acc |