nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2017‒03‒05
five papers chosen by

  1. Accounting discretion, market discipline and bank behaviour: some insights from fair value accounting By Bouther, Regis; Francis, Bill
  2. Whose Balance Sheet is this? Neural Networks for Banks' Pattern Recognition By Leon Rincon, Carlos; Moreno, José Fernando; Cely, Jorge
  3. Capital Taxation in a Fiscal Union – Implications of Simultaneous Horizontal and Decentralized Leadership By Sjögren, Tomas
  4. Taxation, infrastructure, and firm performance in developing countries By Lisa CHAUVET; Marin FERRY
  5. PERSEPSI MAHASISWA AKUNTANSI MENGENAI FAKTOR-FAKTOR PEMILIHAN PROFESI (Studi PERSEPSI MAHASISWA AKUNTANSI MENGENAI FAKTOR-FAKTOR PEMILIHAN PROFESI (Studi Emperis pada Mahasiswa Akuntansi di Perguruan Tinggi di Medan-Sumatera Utara) pada Mahasiswa Akuntansi di Perguruan Tinggi di Medan-Sumatera Utara) By Hutapea, Herti Diana

  1. By: Bouther, Regis (Bank of England); Francis, Bill (Bank of England)
    Abstract: Using quarterly data on FAS 157 fair value disclosures for US bank holding companies from 2008 to 2013, we test whether capital ratios and the effects of market discipline differ according to extent and nature of assets recognized under Level 3 standards. These standards offer management significant discretion for measuring fair values, potentially reducing bank transparency and affecting market perceptions about bank risk. We find limited evidence that capital ratios are lower at institutions engaging in Level 3 trading activities for given risk levels, consistent with opportunistic behaviour. We also find that market discipline, as measured by whether an institution has a US stock exchange listing or dependence on short-term, uninsured funding sources, is effective in moderating this behaviour. At these institutions capital ratios are higher, consistent with there being a direct (ex ante) disciplining effect on bank behaviour.
    Keywords: Banking; market discipline; accounting discretion; regulatory capital ratios
    JEL: G21 G28 G32
    Date: 2017–02–17
  2. By: Leon Rincon, Carlos (Tilburg University, Center For Economic Research); Moreno, José Fernando; Cely, Jorge
    Abstract: The balance sheet is a snapshot that portraits the financial position of a firm at a specific point of time. Under the reasonable assumption that the financial position of a firm is unique and representative, we use a basic artificial neural network pattern recognition method on Colombian banks’ 2000-2014 monthly 25-account balance sheet data to test whether it is possible to classify them with fair accuracy. Results demonstrate that the chosen method is able to classify out-of-sample banks by learning the main features of their balance sheets, and with great accuracy. Results confirm that balance sheets are unique and representative for each bank, and that an artificial neural network is capable of recognizing a bank by its financial accounts. Further developments fostered by our findings may contribute to enhancing financial authorities’ supervision and oversight duties, especially in designing early-warning systems.
    Keywords: supervised learning; machine learning; artificial neural networks; classification
    JEL: C45 C53 G21 M41
    Date: 2017
  3. By: Sjögren, Tomas (Department of Economics, Umeå University)
    Abstract: This article concerns capital taxation and public good provision in a two-layer fiscal union where the federal government uses lump-sum transfers to redistribute resources between two local jurisdictions, and where each local government uses a capital tax and a lump-sum tax to finance the provision of a local public good. The novelty is to allow for simultaneous horizontal and decentralized leadership (double leadership) which means that one of the local governments is able to exercise Stackelberg leadership both vis-a-vis the other local government and vis-a-vis the federal government. Among the results it is shown that the capital tax becomes redundant as a policy instrument for the double leader if the other state government acts as a decentralized leader vis-a-vis the federal government. If, instead, the other state government does not exercise leadership vis-a-vis the federal government then the double leader will implement a capital tax which is allocatively efficient from the perspective of the fiscal union as a whole. It is also shown that double leadership exacerbates the under-taxation inefficiency that earlier research has shown exists in a fiscal union with decentralized leadership.
    Keywords: Federalism; capital taxation; commitment; leadership
    JEL: H10 H21 H77
    Date: 2017–02–23
    Abstract: This paper investigates the relationship between taxation and firm performance in developing countries. Taking firm-level data from the World Bank Enterprise Surveys (WBES) and tax data from the Government Revenue Dataset (ICTD/UNU-WIDER), our results suggest that tax revenue benefits to firm growth in developing countries, especially in low-income countries and lower-middle income countries. These findings are robust to the inclusion of alternative covariates and specifications, and do not appear to be sample dependent. We also provide evidence that the positive effect of taxation on firm growth falls significantly when corruption is too pervasive, and when the origin of tax revenue origin reduces government accountability. Lastly, our paper finds that the positive effect of domestic revenue on firm performance could channel through the financing of public infrastructures vital to firms operating in lower-income countries.
    Date: 2016–09
  5. By: Hutapea, Herti Diana
    Abstract: The aim of this research is to identify the perception of accounting students about the factors which differentiate of career selection as public accountant, company accountant, government accountant, teachers accountant. The factors used as variabel is financial reward (salary), professional training, professional recognition, social values, work environment, labor market considerations, personality, family and friends and to know what types of careers are much in demand by accounting students in North Sumatra, Medan. Samples criteria were universities in North Sumatra accounting study program are accredited minimum B are HKBP Nommensen University (UHN), North Sumatra University (USU), Medan State University (UNIMED), Methodis University, Muhammadyah North Sumatra University (UMSU), Dharmawangsa University, Panca Budi University, Medan Area University (UMA). With this method of sampling is sampling quotas, the quota by the amount of 20 respondents in each university and the total respondents were 160 respondents. Analysis using Kruskal-Wallis method. The results showed that differences between accounting student at Medan, North Sumatra in terms of financial reward (salary), professional training, , social values and personality. On the other no differences between accounting student in terms of professional training, work environment, labor market considerations, family and friends and the profession's favorite choice of student for the overall university is a government accountant is because the future is more assured. Followed by the company's accountants and the next public accountants and the last one is an accountant educators.
    Keywords: Keywords: Financial reward (salary), professional training, professional recognition, social values, work environment, labor market considerations, personality, family and friends.
    JEL: G00
    Date: 2016–10–14

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