nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2016‒01‒03
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Capitalization of capital gains taxes: (In)attention and turn-of-the-year returns By Eichfelder, Sebastian; Lau, Mona
  2. Toward a more business friendly tax regime : key challenges in South Asia By Reva,Anna
  3. Corporate Governance Legal Issues By Svetlana Chekhovskaya
  4. Economic Integration, Corporate Tax Incidence and Fiscal Compensation By Nelly Exbrayat; Benny Geys
  5. Assessing Internal Controls among Insurance companies in Ghana By Amponsah, Stephen; Adu, Kofi Osei; Amissah, Anthony

  1. By: Eichfelder, Sebastian; Lau, Mona
    Abstract: We argue that the tax capitalization effect is a function of the attention of market participants. Market reactions can therefore be driven not only by the announcement dates of tax events but also by factors influencing the dissemination of tax information, such as deadlines and media reports. Analyzing the introduction date of the earlier-announced German capital gains tax reform of 2009 by triple-difference estimation, we find evidence of a delayed market reaction long after the announcement date. Within the last two (five) trading days before the deadline, we observe a sharp increase in abnormal trading volumes of 151.7% (104.0%). The aggregate abnormal return of the German capital market in the last five trading days in 2008 was 10.6%. Furthermore, we find a significant and positive correlation between trading volumes and measures for awareness of the upcoming tax reform (Google searches and media reports).
    Keywords: capital gains tax,asset pricing,tax awareness,tax arbitrageM,turn-of-the-year effect,market efficiency
    JEL: G02 G12 H24 M41
    Date: 2015
  2. By: Reva,Anna
    Abstract: This paper discusses competitiveness-related issues surrounding the design and administration of corporate and value added/sales taxes in four South Asian countries -- Bangladesh, India, Pakistan, and Sri Lanka. The paper is based largely on analysis of tax legislation; in addition, data from the World Bank's enterprise surveys, the Doing Business report, as well as industry studies are used for evidence on tax compliance costs for business. The review of tax regulations in the region shows several commonalities: (1) widespread use of tax incentives to support selected industries, types of firms, and industrial locations; (2) many exemptions from value-added taxes as well as the practice of levying multiple indirect taxes on the same base; and (3) high costs of tax compliance for businesses. The paper discusses the consequences of tax policies for the competitiveness of South Asian producers, describes the main problems in tax administration, and outlines key directions for reforms.
    Keywords: Tax Law,Public Sector Development,Debt Markets,Emerging Markets,Taxation&Subsidies
    Date: 2015–12–14
  3. By: Svetlana Chekhovskaya (National Research University Higher School of Economics)
    Abstract: This paper aims to add to the literature on the connection between corporate governance and corporate law development. “Corporate governance” came into vogue in the 1970s in the United States. Corporate governance had become the subject of debate worldwide by scholars, regulators, investors etc. This paper considers the nature and extent of corporate law contribution to the development of corporate governance and vice versa. In the last years, Russia and most continental countries (Germany, France, Italy) have enacted significant corporate law reforms. In Europe these reforms aim to strengthen the mechanisms of internal governance, empower shareholders, enhance disclosure requirements, and toughen public enforcement, which are the most effective tools for countering abuses by dominant shareholders. It is very much discussed among legal professionals in Russia that now we have the urgent need for the comprehensive review and modernization of corporate law and governance. However, the last two years Russian Civil Code and Federal Law “On Joint Stock Companies” were changed deeply. Under the new Civil Code, all legal entities (both commercial and non-commercial) are divided into corporate and unitary entities
    Keywords: Russian corporate law, soft corporate law, corporate governance
    JEL: K29
    Date: 2015
  4. By: Nelly Exbrayat (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France, Université Jean Monnet, Saint-Etienne, F-42000, France); Benny Geys (Norwegian Business School BI, Nydalsveien 37, N-0442 Oslo, Norway ; Vrije Universiteit Brussel (VUB), Pleinlaan 2, B-1050 Brussels, Belgium)
    Abstract: Higher corporate taxes are often argued to depress wages (a tax incidence effect), while higher wages may require compensation via lower corporate tax rates (a fiscal compensation effect). Yet, existing empirical evidence ignores that i) both effects are likely to occur simultaneously (necessitating a joint estimation approach), and ii) capital mobility might play a critical moderating role for the strength of both effects. Using a panel dataset comprising 24 OECD countries over the period 1982-2007, we address both these deficiencies. This clearly illustrates the simultaneous existence of tax incidence and fiscal compensation effects. Moreover, capital mobility (and the ensuing relative bargaining power of economic agents) has a significant influence on both the prevalence and strength of these effects.
    Keywords: Tax Incidence, Fiscal Compensation, Corporate taxation, Wage bargaining, Capital mobility
    JEL: H22 H25 J21 J31 H32
    Date: 2015
  5. By: Amponsah, Stephen; Adu, Kofi Osei; Amissah, Anthony
    Abstract: This study assessed the internal controls system in the insurance companies in Ghana. Data were collected from internal auditors in the insurance industry in Ghana and in total, 91 questionnaires were successfully administered. The study employed multivariate analysis of variance (MANOVA) as the analytical tool.There was a statistically significant difference among categories of insurance companies on the combined dependent variables (internal control variables-Control Activities, Monitoring, Information and Communication, Control Environment, and Risk Analysis). When the results for the dependent variables were considered separately, the variables that contributed to the statistical significance are the Control Activities, Monitoring, Control Environment and Risk Analysis.The study recommended that National Insurance Commission should organise seminar on effective implementation of internal controls for the insurance companies in Ghana with much focus on brokerage reinsurance, reinsurance and lost adjusters companies.
    Keywords: Internal Control Variables, Categories of insurance companies and MANOVA
    JEL: M1 M2
    Date: 2015–12–25

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