nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒10‒04
nine papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Risk management in light of corporate Governance By Ahmad khateeb
  2. Factors influencing tax stamp purchases in Ghana: A case of Twifo-Atti Morkwa sub-tax District. By Amponsah, Stephen; Adu, Kofi Osei
  3. Regulations, institutions and income smoothing by managing technical reserves: international evidence from the insurance industry By Gaganis, Chrysovalantis; Hasan, Iftekhar; Pasiouras, Fotios
  4. Can State Tax Policies Be Used to Grow Small and Large Businesses? By Eric Borchers; John Deskins; Amanda Ross
  5. Renegotiations in Public-Private Partnerships: Theory and Evidence By OECD
  6. Accounting-based asset return smoothing in participating life annuities: Implications for annuitants, insurers, and policymakers By Maurer, Raimond; Mitchell, Olivia S.; Rogalla, Ralph; Siegelin, Ivonne
  7. The 2015 Stability Law: impacts on Tuscany By Claudia Ferretti; Patrizia Lattarulo
  8. The National Audit Office's Value-for-Money Assessment of Transport Investments By Geraldine Barker; Grace Beardsley; Annie Parsons
  9. Dynamics of internal R&D stakeholders in the Fuzzy Front-End of breakthrough engineering projects By Sophie Hooge; Cédric Dalmasso

  1. By: Ahmad khateeb (al-hussein bin talal university)
    Abstract: Corporate Governance operations are carried out by representatives of stakeholders to provide supervision of risk management and control risks of the organization and the emphasis on the adequacy of controls to avoid these risks, which leads to the direct contribution in the achievement of goals and increase the value of the organization, and perhaps is the question "of these actors that contribute to risk management based on rules of corporate Governance? "The answer to this question was the subject of this research to shed light on the concept of risk management and its relationship to the corporate Governance and identification of which can contribute to identifying, measuring and testing and evaluation of risk management. And to identify the extent of the commitment of both boards of directors and the internal auditor and external auditor and audit committees the requirements of corporate governance in risk management in the insurance company and diagnosis the negative and positive aspects of practical applications for risk management and submission of proposals that would increase the effectiveness of risk management in insurance companies The results showed that there is a recognition great importance to these agencies for their role in risk management but differentiated one from the other and to promote this awareness is necessary to Adhere to the principles and standards of the International Auditing and amending legislation related to the duties of these entities and the holding of training courses, continuing all management levels to familiarize them with the elements of corporate governance and effective role in risk management.
    Keywords: corporate Governance , Risk management , insurance company , internal auditor , stakeholders
    JEL: G30 G22 G32
  2. By: Amponsah, Stephen; Adu, Kofi Osei
    Abstract: This study examined the factors that influence number of tax stump purchased in Twifo-Atti Morkwa sub-tax district in Ghana. Data were collected from taxpayers in the study area who qualify for tax stamps and interview schedule was used for the collection of the data from the respondents. In total, 305 taxpayers were interviewed. The study employed negative binomial regression model to examine the factors that influence number of tax stamp purchased. The study found that levels of education, perception towards the importance of payment of tax, application of sanctions, guilt feeling, rate of tax audit and distance to tax office are key predictors of tax stamp purchases. This study strongly recommends that Tax auditors should go round at least at the beginning of every quarter to inspect the number of tax stamps that taxpayers have bought. The study also recommends that Ghana Revenue Authority should apply sanctions promptly when tax auditors catch some tax stamp defaulters.
    Keywords: tax stamp, taxpayers and negative binomial model
    JEL: H2
    Date: 2015–09–26
  3. By: Gaganis, Chrysovalantis (University of Crete); Hasan, Iftekhar (Fordham University and Bank of Finland); Pasiouras, Fotios (University of Surrey, UK, and University of Crete)
    Abstract: This paper investigates the role of technical reserves in the income smoothing behavior of insurance companies. This is one of the first attempts in the literature to trace such relationship in the insurance industry, especially at a multi-country setting. The experience of 770 insurance firms operating in 87 countries over the period 2000-2009 reveals that there is a significant evidence of income smoothing. The paper also finds that institutional characteristics, e.g., the rule of law, common law legal origin, economic freedom, and regulations relating to technical provisions and supervisory power constrain income smoothing but other factors such as capital requirements, tax deductibility of provisions, auditing, and corporate governance do not have a significant effect.
    Keywords: earnings management; income smoothing; insurance; technical reserves
    JEL: G20 G22 M40 M48
    Date: 2015–08–17
  4. By: Eric Borchers (Creighton University); John Deskins (West Virginia University, College of Business and Economics); Amanda Ross (West Virginia University, College of Business and Economics)
    Abstract: The existing literature studying the relationship between small business activity and U.S. state tax policy has focused primarily on a few measures of small business. We expand this literature by estimating the effect of state tax policy on small businesses by using a broader measures of small business activity using a longitudinal dataset for the U.S. states. We also estimate the relationship between state tax policy and large business activity. Results provide evidence that state tax policy can influence small business firm, establishment, payroll, and employment growth in important ways but provide limited evidence that such policy significantly influences large business growth.
    JEL: H2 H7 R1
    Date: 2015–05
  5. By: OECD
    Abstract: Public-private partnerships (PPPs) have the potential to increase efficiency and improve resource allocation. However, contract renegotiations are common and make us question the benefits to PPPs. Under current accounting standards, PPPs allow intertemporal reallocations of infrastructure spending that do not occur under traditional methods of procuring infrastructure and which allow governments to escape the constraints of congressional purview. We review the theoretical results in Engel et al. [2009a] as well as data from Colombia, Chile and Peru, comprising 610 highway PPPs and 540 renegotiations processes to verify these predictions. The data and original analysis comes from Bitran et al. [2013], complemented with additional descriptive statistics. The empirical evidence supports the predictions of the theoretical model.
    JEL: H21 L51 L91
    Date: 2014–11
  6. By: Maurer, Raimond; Mitchell, Olivia S.; Rogalla, Ralph; Siegelin, Ivonne
    Abstract: This chapter outlines the conditions under which accounting-based smoothing can be beneficial for policyholders who hold with-profit or participating payout life annuities (PLAs). We use a realistically-calibrated model of PLAs to explore how alternative accounting techniques influence policyholder welfare as well as insurer profitability and stability. We find that accounting smoothing of participating life annuities is favorable to consumers and insurers, as it mitigates the impact of short-term volatility and enhances the utility of these long-term annuity contracts.
    Date: 2015
  7. By: Claudia Ferretti; Patrizia Lattarulo (Istituto Regionale per la Programmazionae Economica della Toscana)
    Abstract: By and large, the 2015 Stability Law has been welcomed as a considerable break from the interventions of previous governments, as it introduces measures to recover the economy within a rigid framework of public finance constrains. In this direction, the most significant actions at local level concern: 1. the confirmation of the 80-euro monthly bonus on the personal income tax (IRPEF) for workers with incomes below 26,000 Euros; 2. the reduction of the regional tax on productive activities (IRAP) for the share relative to labour cost; 3. the imposition of new financial constraints to regional budgets (from the expenditure ceiling to the balance compliance), as well as a 4-billion reduction of spending power; 4. the reduction of the spending power of provinces and metropolitan cities, and related effects on the process of institutional reorganization; the reduction of personnel; 5. the loosening of the goals set for municipalities by the internal stability pact, which will be partly offset by the introduction of harmonised accounting standards that also impact on the pact itself; (bad debt loans). It should be noted how financially-stringent measures are coupled with interventions in accounting (for municipalities, provinces and regions) and personnel matters (for the provinces alone). These constitute additional constraints that will limit the capacity for action of these bodies. This paper illustrates the main implications of the Stability Law for Tuscan local authorities as well as for families and firms.
    Keywords: stability law, municipalities
    Date: 2015
  8. By: Geraldine Barker; Grace Beardsley; Annie Parsons
    Abstract: The UK National Audit Office (NAO) scrutinises public spending on behalf of Parliament, helping it to hold government departments to account and helping public bodies improve performance and delivery. We publish around 60 value for money studies each year across a range of government activities, of which, around three of these usually cover transport topics. Our reports look at how government projects, programmes and initiatives have been implemented and make recommendations on how it can be improved. Our value for money work is not strictly ex-post assessment in the usual sense of assessing a programme once it has been in operation for some time. Due to the length of time needed to complete major transport investments and our remit to focus on accountability, we often carry out an assessment of a project before its completion. In some cases, particularly for significant infrastructure investments, a series of value for money reports is appropriate as the programme will develop over time. These tend to focus on how the programme is being delivered, in terms of the planning, procurement or construction phases of infrastructure projects.
    Date: 2014–08
  9. By: Sophie Hooge (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Cédric Dalmasso (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: In competitive industries, intensive innovation is a recognized necessity (Wheelwright and Clark, 1992; Le Masson et al., 2010). One success factor of breakthrough R&D projects lies in the knowledge articulation between innovation definition phases, composed of fuzzy front-end (FFE) and innovative new product development (NPD) stages (Koen et al, 2002; Cooper et al, 2001), and industrial development processes. Then, central issue for innovation projects managers becomes internal R&D stakeholders’ management (Elias et al., 2002) and sustainable learning dynamics across the two parts of the organization (O’Connor, 2008). Our paper fits into this research gap for local breakthrough R&D in the dominant design. We discuss the role of technical expertise level of NDP stakeholders involved in early stages of innovative projects. The research mobilized two longitudinal studies (Yin, 1989) carried out with a global car manufacturer through collaborative management research (Radaelli et al., 2012) since 2005, one focusing on the FFE management, while the other was devoted to learning dynamics of engineering development departments. A cartography of the internal network of breakthrough R&D (Mitchell et al, 1997) underlined a stable organizational network across projects. Nevertheless, a quantitative analysis of accounting data on 8 projects highlights important dynamics of involvement or dis-engagement within the network. The analysis showed that the accounting reporting at the portfolio level used to hide to top-managers the heterogeneity and depth of resources dynamics at the project level. The impacts of local breakthrough R&D on the engineering development organization was similar to waves: some stakeholders, who played roles of experts, spokespersons or innovation design strategists, were able to involve quickly the individuals to maintain the project progress, sometime generating an over-commitment on innovation projects. At the opposite, a lack of trust of the design partners generated withdrawal of resources that needed a strong stakeholder management to be prevented.
    Keywords: Breakthrough R&D, Stakeholders management , Commitment
    Date: 2015–06–17

This nep-acc issue is ©2015 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.
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