nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒01‒09
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. AUDIT FEE DETERMINANTS IN THE HOSPITAL SECTOR By Vanderbeke Dave; Christiaens Johan; Verbruggen Sandra
  2. The Taxation of Owner-Occupied House in Italy: 1974-2014 By Bruno Bises; Antonio Scialà
  4. Commercial Property Price Indexes and the System of National Account By W. Erwin Diewert; Kevin J. Fox; Chihiro Shimizu
  5. Corporate Disclosure of Non-financial Information and Ownership by Foreign Shareholders (Japanese) By KODAMA Naomi; TAKAMURA Shizuka
  6. Accounting normalization in France since the First World War and in Great-Britain during the 1970-1980's, a first step to a comparative analysis. Actors and limits of the institutionalization of the accounting normalization in France and in Great Britain, crossed approach By Touchelay, Béatrice; Chantiri-Chaudemanche, Rouba
  7. Transition and path-dependence in knowledge-intensive industry location: Case of Russian professional services By Denis Ivanov
  8. Income taxation and equity: new dominance criteria and an application to Romania By Brunori, Paolo; Palmisano, Flaviana; Peragine, Vito

  1. By: Vanderbeke Dave; Christiaens Johan; Verbruggen Sandra (-)
    Abstract: Although the number of non-profit audit fee studies recently has risen, evidence in the hospital sector is rather scarce. Apart from NHS studies, hospitals are a fairly new topic and several specific fee determinants are yet to be tested. For instance, hospitals can have a private or a public status and they have a distinct number of clinical services. These and other dependent variables known from earlier research are added to a fee model and investigated. As hypothesized the hospital status does affect the fee as well as the auditor’s experience. Public status positively influences the fee. Considering the auditor’s experience, higher skill levels appear to have a negative impact on the fee. More experience cannot be converted into cash.
    Keywords: Audit fee, health care, pricing model
    Date: 2014–11
  2. By: Bruno Bises (Università Roma Tre); Antonio Scialà (Università Roma Tre)
    Abstract: The taxation of the owner-occupied house – the “principal dwelling‖ was a recurrent central issue in the political and economic debate in Italy especially in the last 15 years. It may be useful, therefore, to address this issue, by both examining the theoretical aspects and reviewing the Italian legislation since the general tax reform of the seventies – whose starting point for direct taxation was the year 1974 – with respect to the two tax bases that can be used in the taxation of owner-occupied dwellings, namely the imputed income and the asset value. This paper first analyzes the tax treatment of principal dwellings in Italy on both equity and efficiency grounds over the past forty years and compares it with the solutions adopted in other countries; second an empirical assessment of the evolution of the total tax burden on owner-occupied houses in Italy is proposed.
    Keywords: Housing taxation, Imputed rent, Irpef, Ici, Imu
    JEL: H21 H24 H71
    Date: 2014–11
  3. By: Borivoje B. Prokolović, Maja Lj. Arsić-Trajković, Mariya Pavlova (H.S.Prokopovic,Serbia; St. Cyril and St. Methodius University of Veliko Trnovo, Department of “Accounting and Finance”, Bulgaria)
    Abstract: Nowadays different national accountant practices cause numerous problems in international financial reporting. Those problems are caused by the fact that financial reports prepared and made according to the principles and rules of recognition, measuring and publishing on national level do not correspond to the users of other national economies. Тhis is the reason why cоmpanies are forced to translate, that is make financial reports produced in one national economy in accordance with the rules of the other national economy. Companies are thus facing the problem of financial reports preparation and creation, because different accounting practices enable comparison of financial reports. This is especially expressed in making investment decisions in international financing.
    Keywords: International standards, globalization, SRRS, IFAC...
    JEL: M41
    Date: 2014–04
  4. 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); Chihiro Shimizu (Reitaku University and University of British Columbia)
    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: 2014–10
  5. By: KODAMA Naomi; TAKAMURA Shizuka
    Abstract: This paper examines the relationship between corporate disclosure of non-financial information and ownership by foreign shareholders using panel data of listed companies in 2003-2011. The results employing fixed effects model show that companies which disclosed non-financial information significantly raised their percentage of foreign investors, and the tendency is especially true in the period after the 2008 financial crisis, although the average ownership ratio by foreign investors in Japanese companies has been decreasing. In addition, we find that the companies which disclosed non-financial information maintain a stable performance as measured by the return on assets, return on equity, and Tobin's Q.<br />These results imply that improvements in company disclosure contribute to improving corporate governance and decreasing information asymmetry for outside investors. The disclosure of non-financial information containing female participation in management may help improve corporate governance and broaden the investor base.
    Date: 2014–12
  6. By: Touchelay, Béatrice; Chantiri-Chaudemanche, Rouba
    Keywords: Comptabilité; Normes; Histoire; Accounting normalization; 20th century; France; 1970's; 1980's; Great Britain;
    JEL: N84 M41
    Date: 2014–03
  7. By: Denis Ivanov
    Abstract: This paper searches for roots of current spatial pattern of professional services in location of Soviet-era R&D sector. The Soviet economy sponsored massive R&D oriented mainly on military purposes. Research was carried out in large institutions affiliated with academia or industry. After the collapse of socialism, military spending and related R&D decreased dramatically. Many researchers left Soviet-style institutions and succeed in the market economy. Did however this process mean anything for geography? Under the centrally planned economy, locational decisions were driven by non-market motives. Moreover, it was near-impossible for planners to anticipate which regions would be more promising under market. I focus on professional services since these industries do not rely on physical capital endowments, so sunk costs are unlikely to impose path-dependence. Professional services in Russia typically hire young educated persons which are expected to be mobile, so imperfect labor market is also unlikely to stick people to places ? unlike human capital externalities which are plausibly to do so. I regress employment in professional services in 2009-2011 by 76 Russian regions on the number of R&D staff in 1991. I consider three industries: architecture and engineering; information technology; accounting, auditing and management consulting. Controls to capture industry location fundamentals include modern-day gross regional product or overall employment, number of employees with university degree, number of R&D staff and urbanization. It should be noted that present-day number of R&D staff comprises primarily employees of state-owned Soviet-style institutions while professional service providers are typically up-to-date privately-owned firms. Results reveal that employment in Soviet R&D positively and significantly affects present-day employment in engineering and in IT. No such evidence is found for accounting, auditing and management consulting in which industries researchers' skills were less relevant. Results remains when shares in employment of professional services and R&D sector are plugged into regression instead of absolute numbers. I consider different explanations for this phenomenon. I attempt to track influence of 1991 R&D-related employment on current output-per-worker in IT and engineering and find positive correlation, although marginally significant. So, it is unlikely that Soviet-era pools of human capital created regional poverty traps due to low migration rates, and human capital externalities theory seems plausible. I also find that regions with greater number of R&D staff in 1991 now have greater number of SMEs both in business services and in the rest of economy, so entrepreneurship is a likely mechanism to impose path-dependence.
    JEL: N74 R12
    Date: 2014–11
  8. By: Brunori, Paolo; Palmisano, Flaviana; Peragine, Vito
    Abstract: This paper addresses the problem of the normative evaluation of income tax systems and income tax reforms. While most of the existing criteria, framed in the utilitarian tradition, are uniquely based on information about individual incomes, this paper, building upon the opportunity egalitarian theory, proposes new equity criteria which take into account also the socio-economic characteristics of individuals. Suitable dominance conditions that can be used to rank alternative tax systems are derived by means of an axiomatic approach. Moreover, the theoretical results are used to assess the redistributive effects of an hypothetical tax reform in Romania through a microsimulation analysis.
    Date: 2014–12–01

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