nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒10‒13
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Capital Gains Taxation Under Different Tax Regimes, Asset Pricing and Investment Decisions - a Monte-Carlo-Ssimulation of the Influence of Tax Systems on Dividend and Timing Behaviour By Caren SURETH; Dirk LANGELEH
  2. Heterogeneous Tax Sensitivity of Firm-level Investments By Egger, Peter; Erhardt, Katharina; Keuschnigg, Christian
  3. An ACE Model of International Tax Competition By Flavio Cesar; Klimis Vogiatzoglou
  4. Review of Russian Legislation in the Sphere of Tax and Civil Legislation in 2013 By Irina Tolmacheva
  5. Is a Detailed Tax Planning for Investment Decisions Worthwhile? Evidence From Germany By Deborah Knirsch
  6. Commercial Property Price Indexes and the System of National Accounts By Diewert, Erwin W.; Fox, Kevin J.; Shimizu, Chihiro
  7. French banks performance in 2012. By Capitaine G.; Guilmo J.; Mercier L.; Point E.
  8. Japan's Balance of Payments for 2012 By International Department

  1. By: Caren SURETH; Dirk LANGELEH
  2. By: Egger, Peter (ETH Zuerich); Erhardt, Katharina (ETH Zuerich); Keuschnigg, Christian (Institute for Advanced Studies, Vienna and University of St. Gallen)
    Abstract: Firms are heterogeneous in size, productivity, ownership concentration, governance, financial structure and other dimensions. This paper introduces a stylized theoretical framework to account for such differences and to explain the heterogeneous tax sensitivity of firm-level investments across firm types. We econometrically test the theoretical predictions, taking account of selection of firms into different regimes. We find important differences in the tax sensitivity of investment of small entrepreneurial and larger managerial firms in different financial regimes that are largely in line with theoretical results.
    Keywords: Corporate tax, personal taxes, firm heterogeneity, access to capital, manager-shareholder conflicts
    JEL: D22 G32 H25 L21
    Date: 2014–09
  3. By: Flavio Cesar; Klimis Vogiatzoglou
  4. By: Irina Tolmacheva (Gaidar Institute for Economic Policy)
    Abstract: This paper deals with a review of the tax and civil legislation in Russia.
    Keywords: Russian tax and civil legislation
    JEL: K1 K2 K3
    Date: 2014
  5. By: Deborah Knirsch
  6. By: Diewert, Erwin W.; Fox, Kevin J.; Shimizu, Chihiro
    Abstract: The paper studies the problems associated with the construction of price indexes for commercial properties that could be used in the System of National Accounts. Property price indexes are required for the stocks of commercial properties in the Balance Sheets of the country. Related service price indexes for the land and structure input components of a commercial property are required in the Production Accounts of the country if the Multifactor Productivity of the Commercial Property Industry is calculated as part of the System of National accounts. The paper reviews existing methods for constructing an overall Commercial Property Price Index (CPPI) and concludes that most methods are biased (due to their neglect of depreciation) and more importantly, not able to provide separate land and structure subindexes. A class of hedonic regression models that is not subject to these problems is discussed.
    Keywords: Commercial property price indexes, Net Operating Income, discounted cash flow, System of National Accounts, Balance Sheets, methods of depreciation, land and structure prices, hedonic regressions, repeat sales method
    JEL: C2 C23 C43 D12 E31 R21
    Date: 2014–09
  7. By: Capitaine G.; Guilmo J.; Mercier L.; Point E.
    Abstract: In a challenging economic environment for 2012, characterised by a 0.6% drop in Eurozone GDP, the French largest banking groups benefited from the stabilisation of markets following decisive actions by the European Central Bank (ECB) introducing Very Long Term Refinancing Operation (VLTRO) and Outright Monetary Transactions (OMT). In 2012 the top 6 French banking groups generated an aggregated profit after tax of EUR 8.4 billion, sharply down, as compared with EUR 14.5 billion in 2011, owing to several exceptional items such as significant divestments from Greece. Setting exceptional items aside, Net Banking Income (NBI) was 2.4 % down and profit after tax dropped by 6.3 % in line with what was observed at foreign banking peers. 2012 was characterised for French banks by a steady decrease in interest margins in a protracted period of low interest rates, a slight reduction in fees and commissions due to a slowing economy, a deterioration of cost-to-income ratios and –putting aside the 2011 write-off of the Greek debt– an uptick in the cost of risk. The subdued economic environment is urging banks to improve cost efficiency; in 2013 they are launching new plans to cut costs. As far as risks are concerned, after a temporary reduction in 2011, past due loans slightly increased in the second half of 2012 reaching 1.9% of total loans. Doubtful loans have remained stable at 4.3% of gross loans since mid-2010 and the coverage ratio of specific provisions over doubtful loans has slightly increased, reaching 54.3 % at end 2012, so that French banks compare relatively well with European peers. Yet, in order to address lasting uncertainties on asset quality of European banks, it is essential that banks, under the control of their statutory auditors, keep a watchful eye on the early identification and the classification of non-performing loans, the prudent valuation of assets and the rigorous recognition of provision impairments. Concerning balance sheet adjustments, although French banks total assets increased in 2012, loans -including foreign claims- slightly decreased. Moreover the volume of liquid assets and deposits with the European Central Bank has been rising, as banks are building liquidity buffers in a still volatile market environment also in anticipation of the implementation of the liquidity coverage ratio (LCR). This situation is nevertheless weighing on interest margins. Deleveraging plans, which accelerated during the summer 2011 crisis, gradually reduced funding needs especially in US dollars, whereas funding has been refocused on the most stable resources in order to reduce short term wholesale funding. Loan-to-deposit ratios have been decreasing in a more balanced direction thanks to growing customer deposits. The solvency of French banks has significantly improved. The top 6 banks strengthened their Core Tier 1 by EUR 15 billion in 2012. Risk weighted assets declined as exposures shifted towards less risky counterparties. The largest French banks have confirmed their target to reach CRD4 fully loaded Common Equity Tier 1 (CET 1) ratios above 9% by the end of 2013.
    Keywords: net banking income, operating costs, cost-to-income ratio, cost of risk, net income, solvency ratio, key risk indicators.
    Date: 2013
  8. By: International Department (Bank of Japan)
    Abstract: Japan's current account surplus halved to 4.8 trillion yen in 2012 from 9.6 trillion yen in 2011, mainly due to an increase in the deficit on goods. The capital and financial account shifted to net outflows of 8.2 trillion yen in 2012 from net inflows of 1.2 trillion yen in 2011, mainly because portfolio investment shifted to net outflows due to a decrease in net purchases of Japanese securities by foreign investors (inflows) and an increase in net purchases of foreign securities by Japanese investors (outflows). Reserve assets decreased for the first time in 14 years, falling by 3.1 trillion yen in 2012, compared to an increase of 13.8 trillion yen in 2011. This was mainly because no foreign exchange interventions were conducted and some of the assets were employed in loans to the Japan Bank for International Cooperation, which are not classified as reserve assets.
    Date: 2013–07–24

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