nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒12‒08
six papers chosen by
Alexander Harin
Modern University for the Humanities

  1. What do we know about the tax planning of German-based multinational firms? By Hebous, Shafik; Weichenrieder, Alfons J.
  2. Japan’s Corporate Income Tax: Facts, Issues and Reform Options By Ruud A. de Mooij; Ikuo Saito
  3. Shift in tax burden and its impact on economic growth in the European Union By Szarowska, Irena
  4. Current Accounts in the Eurozone Countries: The Role of Euro, Fiscal Policies and Financial Developments By Jaromír Baxa; Tomáš Olešòaník
  5. Constructing a research network: accounting knowledge in production By Vassili Joannides; Nicolas Berland
  6. A Search-Theoretic Approach to Efficient Financial Intermediation By Fabien Tripier

  1. By: Hebous, Shafik; Weichenrieder, Alfons J.
    Abstract: Research results confirm the existence of various forms of international tax planning by multinational firms. Prominent examples for firms employing tax avoidance strategies are Amazon, Google and Starbucks. Increasing availability of administrative data for Europe has enabled researchers to study behavioural responses of European multinationals to taxation. The present paper summarizes what we can learn from these recent studies in general and about German multinationals in particular.
    Keywords: taxation,foreign direct investment,multinational firms
    Date: 2014
  2. By: Ruud A. de Mooij; Ikuo Saito
    Abstract: This paper explores how corporate income tax reform can help Japan increase investment and boost potential growth. Using international and Japan-specific empirical estimates of corporate tax elasticities, investment is predicted to expand by around 0.4 percent for each point of rate reduction. International consensus estimates suggest further that between 10 and 30 percent of the static revenue loss could be recovered in the long run through dynamic scoring, although Japan’s offset may be closer to the lower bound. Compensating fiscal measures are necessary in light of Japan’s tight fiscal constraints. The scope for base broadening in the corporate income tax is found to be limited and some forms of base broadening will undo positive investment effects of a rate cut. Alternative revenue sources include higher consumption and property taxes. A gradual approach toward lowering tax rates mitigates windfall gains and reduces short-run revenue costs. An incremental allowance-for-corporate-equity system could boost investment with limited fiscal costs in the short run.
    Keywords: Corporate income taxes;Japan;Tax reforms;Tax rates;Tax reductions;Investment;Fiscal stimulus;Corporate income tax; Japan; Tax distortions; Investment; Dynamic scoring.
    Date: 2014–08–04
  3. By: Szarowska, Irena
    Abstract: This article deals with a tax burden in the European Union in as financial and economic crisis has impacted also on tax systems in the European Union. Governments´ tax measure aims to consolidate public finance and promote an economic growth. The article provides empirical evidence on a shift in a tax burden and its structure and analyzes the effects of shift in tax burden on economic growth in the EU. It is used the Eurostat definition to categorize tax burden by economic functions and implicit rates of consumption, labour and capital are investigated. The analysis is based on annual data of the EU member states in a period 1995-2010. Pairwise Granger Causality Test was used for examining relations between economic growth and tax burden by economic functions in short-term. Results confirm that there is two-way causality between change of implicit tax rate of consumption and GDP growth; and also GDP growth Granger-cause change of implicit tax rate of capital and implicit tax rate of labour through one-way causality. On average, labour taxes have decreased by 1.9 p.p., capital taxes have also decreased – by 2.1 p.p., but consumption taxes have mildly increased by 0.4 p.p. in the European Union in a period 1995-2010.
    Keywords: tax burden, tax shift, implicit tax rates, growth conductive system, economic functions, economic growth
    JEL: E62 H2 O11
    Date: 2013
  4. By: Jaromír Baxa (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic. Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic, Pod Vodárenskou veží 4, 182 08 Prague 8, Czech Republic); Tomáš Olešòaník (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)
    Abstract: Should we blame the euro for widening of current account deficits in the EMU? In this paper, we employ time-specific fixed effect estimator to study determinants of the current account deficits of the EU countries before and after adoption of the euro. Our aim is to assess to what extent the increased current account deficits could be attributed to the single currency and to the role of other variables, especially fiscal policy and developments of financial sector. We show that euro had negative effect on current account balances of southern countries. Moreover, we provide evidence that the role of fiscal policy in current account dynamics changed with euro adoption and twin deficits emerged in many countries. Finally, we document significant role of growing credits to private sector for built-up of persistent current account deficits, hence the negative effects of excessive lending on external balance should be addressed by the regulators and policy makers in the future.
    Keywords: current account, euro, fiscal balance, financial system
    JEL: E42 E62 F14
    Date: 2014–09
  5. By: Vassili Joannides (GDF - Gestion, Droit et Finance - Grenoble École de Management (GEM)); Nicolas Berland (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris IX - Paris Dauphine)
    Abstract: Purpose - This paper contributes to the sociology-of-science type of accounting literature, addressing how accounting knowledge is established, advanced and extended. Design/methodology/approach - The research question is answered through the example of research into linkages between accounting and religion. Adopting an Actor-Network Theory (ANT) approach, we follow the actors involved in the construction of accounting as an academic discipline through the controversies in which they engage to develop knowledge. Findings - We show that accounting knowledge is established, advanced and developed through the ongoing mobilisation of nonhumans (journals) who can enrol other humans and nonhumans. We show that knowledge advancement, establishment and development is more contingent on network breadth than on research paradigms, which appear as side-effects of positioning vis-à- vis a community. Research limitations - In our analysis, we followed humans and were able to let them share their strategies with us and validate our ex post facto reading of their papers. We were unable to do the same with nonhumans because of their intrinsic properties. Practical implications - This paper provides scholars with analytical tools that could help them position their research projects within a scientific network and understand the need for interactions with other actors in establishing, advancing and developing knowledge. Originality value - The originality of this paper is twofold. Firstly, we apply ANT to accounting knowledge, whereas the accounting literature applies it to the spread of management accounting ideas, methods and practices. Secondly, we develop an original methodology for data collection by inviting authors from the network to give a reflexive account of their writings at the time they joined the network. Well diffused in sociology and philosophy, such an approach is, albeit, original in accounting research.
    Keywords: Research network; Accounting research; Knowledge; Actor-network theory; Controversies; Translation; Knowledge management
    Date: 2013–05–15
  6. By: Fabien Tripier
    Abstract: This article develops a search-theoretic model of financial intermediation to study the efficiency condition of the banking sector. Competitive financial intermediation is determined by the search decisions of both households (to find adequate financial products) and banks (to attract depositors through marketing and to select borrowers through auditing) and by the interest rate setting mechanism. The efficiency of the competitive economy requires that interest rates are posted by banks or are bargained under a specific Hosios (1990) condition, which addresses the hold-up problem induced by search frictions on the credit and deposit markets. Interbank market frictions are introduced to show how an interbank market crisis leads to inefficient financial intermediation characterized by credit rationing and high net interest margin.
    Keywords: Banking;Search;Search;Matching;Switching Costs;Efficiency
    JEL: C78 D83 G21
    Date: 2014–11

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.