|
on Accounting and Auditing |
|
Issue of 2017‒11‒26
six papers chosen by |
| By: | Céline Antonin (OFCE-SCIENCES PO); Vincent Touzé (OFCE Sciences Po) |
| Abstract: | This article addresses the issue of capital taxation relying on three levels of analysis. The first level deals with the multiple ways to tax capital (income or value, proportional or progressive taxation, and the temporality of the taxation) and presents some of France's particular features within a heterogeneous European context. The second area of investigation focuses on the main dynamic properties generated by capital taxation: the principle of equivalence with a tax on consumption; the issue of double taxation if it targets taxation of nominal income; neutrality of the uniform tax on the capital value; lastly, the risk of confiscatory taxation if there is a disjunction between taxation of the value and the income. The final level of analysis consists in assessing the debate on the optimal level of capital taxation drawing on the lessons in the literature. These discussions are organized into eight themes: (1) double taxation, (2) optimal growth, (3) property, (4) tax competition, (5) supervisory arguments, (6) measuring capital gains, (7) complexity and (8) fiscal stability |
| Keywords: | Taxation, savings, accumulation of capital |
| JEL: | D90 E21 H20 |
| Date: | 2017–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1708&r=acc |
| By: | Natalia Konovalova (RISEBA University) |
| Abstract: | Abstract Transition towards regulation of banking activity based on Basel III requirements was caused by consequences of global financial and economic crisis 2007 ? 2009 that endangered the financial system stability in many countries. The banks were forced to form a large volume of accumulations to cover bad debts and could not deal with absorption of losses. It means that the system of banking regulation and supervision existing at that time did not fully reflect the banking sector risks during the periods of economic and financial shocks. The purpose of the study is to identify the influence of Basel III nonmonetary regulation methods on the banking system stability and economic growth. The study has been carried out based on financial accounting of banks in countries of East Europe. The article gives an assessment of banking activity regulation based on the implementation of Basel III requirements, which have become a response of supervisory bodies to the prevention of crisis events. It was reflected in the toughening of requirements for the capital and liquidity, which in turn required the revision of banking activity management methods. Results of the research. Bank regulation based on Basel III requirements may have both positive and adverse aspects and consequences. Positive: Growing requirements for the capital and liquidity will increase the borrowing power and solvency of banks and, therewith, the sustainability of the entire banking sector. Banking system and economy in general will be more resistant to financial shocks. Regulation based on Basel III will also contribute to reduction in systemic risk and prevention of systemic crises in future. Negative: Increase in the capital of banks as well as improvement of its structure and quality will lead to growing expenditures of banks, which in turn can entail growth in credit rates and reduction of banking activity. As a result, economic growth will slow. Reduction of banking activity will have adverse impact on profitability of banking business. |
| Keywords: | Key words: Capital adequacy, Bank?s liquidity, Capital safety margin, Financial leverage, Economic growth, Economic stability |
| JEL: | G21 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:5808191&r=acc |
| By: | Brandon Gipper; Luzi Hail; Christian Leuz |
| Abstract: | This paper provides the first partner tenure and rotation analysis for a large cross-section of U.S. publicly listed firms over an extended period. We analyze the effects on audit quality as well as economic tradeoffs related to partner tenure and rotation with respect to audit hours and fees. On average, we find no evidence for audit quality declines over the tenure cycle and little support for fresh-look benefits after rotations. Nevertheless, partner rotations have significant economic consequences. We find increases in audit fees and decreases in audit hours over the tenure cycle, which differ by partner experience, client size, and competitiveness of the local audit market. More generally, our findings are consistent with efforts by the audit firms to minimize disruptions and audit failures around mandatory rotations. We also analyze special circumstances, such as audit firm switches and early partner rotations, and show that they are more disruptive than mandatory rotations, and also more likely to exhibit audit quality effects. |
| JEL: | G30 J44 J62 K22 L84 M21 M41 M42 M51 M54 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24018&r=acc |
| By: | Pérez Caldentey, Esteban; Cruz Luzuriaga, Manuel |
| Abstract: | Flow-of-funds accounting permit to monitor the financial sector in terms of flows and stocks and to analyze its relationship with the real sector. These show inter-sectoral financial flows, capture balance sheet positions and all financial transactions by instrument, type and economic sector. In this paper we explain the methodology for the construction of flow-of-funds accounts and we exemplify their use for two source cases of study: the Mexican Crisis (1994-1995) and the Asian Crisis (1997-1998). Using similar sources of data, the same methodology and approach for the construction of all the flow-of-funds matrices allow comparisons among countries relating to the impact, manifestations of these crisis episodes and policy reactions to confront their effects. The use of homogeneous data and methodology also permits to trace contagion effects between countries. |
| Keywords: | CONDICIONES ECONOMICAS, DESARROLLO ECONOMICO, EVALUACION, CONTABILIDAD DE LA CORRIENTE DE FONDOS, ESTUDIOS DE CASOS, CRISIS ECONOMICA, INDICADORES ECONOMICOS, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, EVALUATION, FLOW OF FUNDS ACCOUNTING, CASE STUDIES, ECONOMIC CRISIS, ECONOMIC INDICATORS |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col035:42362&r=acc |
| By: | Markus Lampe (Vienna University of Economics and Business); Paul Sharp (University of Southern Denmark, CEPR) |
| Abstract: | We argue that Danish agriculture provides an ideal opportunity to understand how and why modern accounting emerged. Denmark underwent an unusually rapid and successful agricultural transformation in the second half of the nineteenth century, largely based on dairying, for which we present unique Ôreal timeÕ data on the process of the development of accounting. We observe that economic actors first argued for the introduction of modern accounting at a time of crisis during the Napoleonic Wars and immediately after, when the proscriptive arguments offered failed to take hold. Then, in the 1850s and 1860s, a group of Ôrational farmersÕÐ owners and administrators of landed estates Ð made a second attempt. During this latter period, they succeeded in spreading their ideas: initially to their peers, but later even to the peasantry through the cooperative movement, thus transforming agricultural practice in their wake. We analyze this within a theoretical framework borrowed from the international relations literature, and see the rational farmers as an example of the creation of an Ôepistemic communityÕ: they emerged during a period of uncertainty, offered interpretations based on their normative understanding of reality, and finally institutionalized praxis through for example scientific journals and schooling. |
| Keywords: | Accounting, bookkeeping, dairies, Denmark |
| JEL: | M41 N53 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0115&r=acc |
| By: | Davis, Scott (Federal Reserve Bank of Dallas); Zlate, Andrei (Federal Reserve Bank of Boston) |
| Abstract: | This paper measures the effect of monetary tightening in key advanced economies on net capital flows and exchange rates around the world. Measuring this effect is complicated by the fact that the domestic monetary policies of affected economies respond endogenously to the foreign tightening shock. Using a structural VAR framework with quarterly panel data we estimate the impulse responses of domestic policy variables and net capital flows to a foreign monetary tightening shock. We find that the endogenous responses of domestic monetary policy depends on each economy’s capital account openness and exchange rate regime. We develop a method to plot counter-factual impulse responses for net capital outflows under the assumption that domestic interest rates are held constant despite foreign monetary tightening. Our results suggests that failing to account for the endogenous response of domestic monetary policy biases down the estimated elasticity of net capital flows to foreign interest rates by as much as ¼ for floaters and ½ for peggers with open capital accounts. |
| JEL: | E5 F3 F4 |
| Date: | 2017–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:328&r=acc |