nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2017‒09‒10
eight papers chosen by

  1. Analyzing the critical effects of creative accounting practices in the corporate sector of Ghana By Ndebugri, Haruna; Tweneboah Senzu, Emmanuel
  2. Du contrôle des risques d'asymétrie informationnelle en Comptabilité d'engagements: que nous enseigne le principe de la "partie double" By Emmanuel Okamba
  3. The effects of a tax allowance for growth and investment: Empirical evidence from a firm-level analysis By Petutschnig, Matthias; Rünger, Silke
  4. Corporate Tax Reform and Tax Incidence in Japan (Japanese) By DOI Takero
  5. L’impact des interactions formelles et informelles entre la fonction d’audit interne et le comité d’audit sur la mise en œuvre des recommandations du rapport d’audit interne By Ahmed Atef Oussii; Neila Taktak Boulila
  6. The capacity of governments to raise taxes By Oguzhan Akgun; David Bartolini; Boris Cournède
  7. Legal tax liability, legal remittance responsibility and tax incidence: Three dimensions of business taxation By Anna Milanez
  8. A pragmatist approach of audit practices : safety demonstration and safety assessment through technical dialogue By Jérémy Eydieux; Stéphanie Tillement; Benoît Journé

  1. By: Ndebugri, Haruna; Tweneboah Senzu, Emmanuel
    Abstract: The studies strive to empirically examine, the adoption of creative accounting methods in financial reporting structures, in the corporate sector of Ghana and it ramification on the financial system.
    Keywords: Creative Accounting, Finance-Economic management,Manipulative Accounting, Deceptive Account Reporting
    JEL: G3 G31 G32 M41 M42 M48
    Date: 2017–09–04
  2. By: Emmanuel Okamba (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)
    Abstract: The universe to two dimensions of commitment accounting is governed by information asymmetry. This asymmetry is controlled by the principle of double entry which ensures the control of operational risk and counterparty by traceability, systemic risk or position of the accounting and financial statements of causality, and partnership risk the quality of Information sent to stakeholders to meet their usefulness. If the rule of traceability has been important normative research that confirms the relevance of the accounting mechanics and make the accounting, technical management, causality that makes accounting a management science, is a fundamental axiom whose exploration by a positivist approach sheds new light on the control of risks associated with information asymmetry in Accounting. It formalises the fundamental equation of Accounting confirming the scientific status of Accounting as a science and a management technic.
    Abstract: L'univers à deux dimensions de la Comptabilité d'engagements est régi par l'asymétrie informationnelle. Cette asymétrie est contrôlée par le principe de la partie double qui assure la maîtrise des risques opérationnel ou de contrepartie par la traçabilité des écritures, le risque systémique ou de positions des Etats comptables et financiers par la causalité, et le risque partenarial lié à la qualité de l'information adressée aux parties prenantes pour satisfaire leur utilité. Si la règle de la traçabilité a fait l'objet d'importantes recherches normatives qui confirment la pertinence de la mécanique comptable et font de la Comptabilité, une technique de gestion, la causalité qui fait de la Comptabilité une science de la gestion, est un axiome fondamental dont l'exploration par une approche positiviste donne un nouvel éclairage sur le contrôle des risques liés à l'asymétrie informationnelle en Comptabilité. Elle permet de formaliser l'équation fondamentale de la Comptabilité qui confirme le statut scientifique de la Comptabilité comme une science et un technique de gestion.
    Keywords: Fundamental equation of accounting,causality,traceability,double entry,operational risk,systemic risk,Equation fondamentale de la comptabilité,causalité,traçabilité,partie double,risque opérationnel,risque systémique
    Date: 2017
  3. By: Petutschnig, Matthias; Rünger, Silke
    Abstract: We contribute to the empirical literature on the debt bias of corporate income taxation through a firm-level evaluation of the European Commission's recent proposal of an Allowance for Growth and Investment (AGI). We use the introduction, the application and the repeal of a similar allowance in Austria during the early 2000s to evaluate the effects of the AGI on corporate equity and profit distribution. Our analysis provides evidence that such an allowance could increase corporate equity ratios by 5.5 percentage points and reduce profit distributions by 7.6 percentage points. These effects are stronger than those the previous literature for traditional Allowance for Corporate Equity (ACE) tax systems has identified. Additionally, we contribute to the recently expanding literature on the influence of ownership on tax planning as we find significant differences in the utilization of the AGI depending on individual specifics of the majority shareholder as well as depending on the number of shareholders of the respective firms
    Keywords: taxes,retained earnings,tax allowance,notional interest deduction,AGI,ACE
    JEL: G32 H24 H25 K34
    Date: 2017
  4. By: DOI Takero
    Abstract: This paper investigates the effects of corporate tax reform in Japan, wherein the (effective) corporate income tax rate decreases from 34.62% to 29.74% and the rates of size-based business taxation (levy on the sum of labor cost and other factor payment) rise at 2.5 times. We implement a simulation based on a dynamic macroeconomic model including capital structure (i.e., choices of equity, debt, and retained earnings) in the proposed model in order to implement investment, and measure the incidence of corporate income tax on labor income. This tax reform implies that the tax base is shifted from corporate income to labor cost, because it accounts for the majority of factor payments for most firms on which the size-based business taxation or "pro-forma" taxation is imposed. We find that the benefit on labor income from reduction of corporate income taxation is decreased by about 30% by expansion of the size-based business taxation from a simulation result. A reason behind the phenomena is distortion stemming from the size-based business taxation. Labor income increases due to lowering (effective) corporate income tax rate, nevertheless it loses due to rising rates of size-based business taxation.
    Date: 2017–08
  5. By: Ahmed Atef Oussii (DEFI - ESSECT); Neila Taktak Boulila (DEFI - ESSECT)
    Abstract: L’objectif de ce papier est d’analyser l’impact de ces interactions formelles et informelles entre la fonction d’audit interne et le comité d’audit sur la mise en œuvre des recommandations du rapport d’audit interne. Les tests portent sur 159 observations parmi les entreprises tunisiennes cotées (période 2013-2015). Les analyses multivariées montrent que la mise en œuvre des recommandations du rapport d’audit interne augmente avec l’ampleur de plusieurs formes d’interactions formelles et informelles entre le comité d’audit et la fonction d’audit interne.
    Keywords: Audit interne, comité d’audit, interactions formelles, échanges informelles, rapport d’audit interne.
    Date: 2017–01–19
  6. By: Oguzhan Akgun; David Bartolini; Boris Cournède
    Abstract: This paper investigates the factors that shape governments’ capacity to collect revenue. To do so, it analyses how tax revenue responds to tax rates using evidence from a panel of 34 OECD countries over 1978-2014. The estimations show that the response of revenue to rates weakens as rates become higher, confirming the existence of a hump-shaped relationship between tax revenue and rates for corporate income taxation and providing a new contribution by analysing value-added taxation. Importantly, the estimated responses of revenue to tax rates vary, in some cases very strongly from an economic perspective, depending on country-specific policies and framework conditions. In particular, the corporate income tax revenue-generating potential of hiking the effective rate shrinks much more quickly in more open economies than in more closed ones. Tax revenue is found to be more responsive to tax increases in countries where the tax authorities have more resources. The investigations also cover personal income taxation. They point to diminishing revenue returns of increasing the effective marginal tax rates that apply at substantially above-average income levels.
    Keywords: country-specific circumstances, effective marginal tax rate, framework conditions, interactions, Laffer curve, personal income tax, social security contributions, value added tax
    JEL: H20 H24 H26
    Date: 2017–09–11
  7. By: Anna Milanez
    Abstract: This paper examines the role of businesses in the tax system. In addition to being taxed directly, businesses act as withholding agents and remitters of tax on behalf of others. Yet the share of tax revenue that businesses remit to governments outside of direct tax liabilities is under-studied. This paper develops two measures of the contribution of businesses to the tax system and applies both these measures for 24 OECD countries. The results show that businesses play an important role in the tax system, both as taxpayers and as remitters of tax. However, care should be taken in interpreting any measure of the business tax burden, which must be understood against the backdrop of economic incidence. This paper highlights that the economic incidence, or burden, of a tax is not necessarily borne by the person on whom the tax is imposed under legal statute, but may be passed on to others in the economy, whether it be owners of capital, workers or consumers.
    Date: 2017–09–18
  8. By: Jérémy Eydieux (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes); Stéphanie Tillement (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes); Benoît Journé (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)
    Abstract: In France, nuclear risks are partly governed by a "technical dialog" surrounding safety demonstrations. In order to get an authorization for creating, running, or dismantling a nuclear installation, each nuclear operator must demonstrate to the ASN, and the national expert IRSN, that everything will be fine in the field. The purpose of this paper is to examine, with Dewey’s Theory of Valuation, by which methods action is conducted when a demonstration is to be produced by a nuclear operator, and an assessment by IRSN. Indeed, a stabilized literature has thought auditing practices, but without clarification concerning how actors demonstrate or assess what has to be evaluated. We study two cases, one related to a demonstration and the other to an assessment. We mainly rely on document collection, and did a few interviews to complement. We analyzed the material through document analysis (types of documents and of intertextuality), and then did a narrative analysis based on two interpretive frameworks. Our results show that each organization realizes a management of beliefs and doubts, its own and those of other organizations. They also unfold 8 kinds of works, implemented in both cases, and finally show how they contribute to the management of managerial issues of auditing practices. We thus contribute to literature of these interorganizationnal relationships, by giving a few elements toward a pragmatist approach of them. We suggest that, as researchers, we should investigate more deeply these objects from a methodological standpoint, and make a few methodological and managerial contributions.
    Keywords: Auditing practices, Risks governance, Pragmatist philosophy
    Date: 2017–07–06

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