nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2018‒01‒08
five papers chosen by

  1. Responses of Firms to Tax, Administrative and Accounting Rules: Evidence from Armenia By Zareh Asatryan; Andreas Peichl
  2. Are external accounts sustainable in Portugal? By Jorge Silva
  3. Some issues in the measurement of profit Accountants versus economists By Hasan, Zubair
  4. Gender Quota and Inequalities inside the Boardroom By Antoine Rebérioux; Gwenael Roudaut
  5. Bank Lending in the Knowledge Economy By Giovanni Dell'Ariccia; Dalida Kadyrzhanova; Camelia Minoiu; Lev Ratnovski

  1. By: Zareh Asatryan; Andreas Peichl
    Abstract: Using panel data on the full population of corporate tax returns from Armenia, we study behavioral responses of firms to three size-dependent regulations. We find: i) a strong response to an accounting notch where IFRS becomes mandatory; ii) a moderate response to an administrative notch below which the frequency of filing taxes declines; and iii) no response to the VAT registration threshold notch. Exploiting tax audits, we provide evidence suggesting that income under-reporting drives the bunching response of firms. Additional evidence suggests that firms respond to audits by compensating additional reported income by a 0.90 dollar increase in deductions.
    Keywords: small and medium enterprises, size-dependent regulation, value added tax, tax administration, tax accounting, tax evasion
    JEL: H25 H26 O12
    Date: 2017
  2. By: Jorge Silva
    Abstract: This study assesses the sustainability of the Portuguese external accounts during the period 1999-2014 and the role of the public sector.There was evidence of higher import content of the non-construction investment and private investment. Therefore, the high import content of the non-construction investment was an additional challenge because its increase did not create a strong positive multiplier effect on the Portuguese economy. Exports in volume were determined by the economic growth rate of the euro area, the share of the Portuguese nominal exports in the total exports of the euro area, unit labour costs of the private sector due to the compensation of employees and real productivity, the exchange rate and the terms of trade. There was no evidence of twin deficits. Additionally, there was a negative correlation between the internal and the external balance. Furthermore, we analysed the determinants of the liabilities related to the international investment position, decomposing the external funding and identifying their determinants.
    Keywords: Current account, financial markets, Portugal, international investment position, economic and financial adjustment programme
    JEL: C22 F32 F34 G01
    Date: 2017–12
  3. By: Hasan, Zubair
    Abstract: This paper discusses a topic rarely addressed in the literature on profit theory over the decades. In empirical work on subjects like growth, efficiency and welfare in mainstream or Islamic economics business profits at times appear as one of the determinants. Such studies perforce use profit data reported in the accounting records. This data is invariably at variance in important ways with the economists’ theoretical view of profit. The cause of divergence is the cosmopolitan forward looking ex ante view of entrepreneurism the economists take in the matter as opposed to the narrow conservative ex post focus of the accountants needed to protect the interest of business proprietors who pay them for the job. There is a need to narrow this gap to improve the results of empirical explorations. This paper identifies and examines some issues like maintenance of capital, evaluation of inventories and the impact of conservatism as causes of divergence as focal points for reducing the gap. It concludes that the economists are obliged more to take cognizance of accounting compulsions than the other way round in the reconciliation process.
    Keywords: : Business profits, Efficiency, capital maintenance, inventory evaluation, Conservatism
    JEL: M0 M2 M4
    Date: 2017–04–18
  4. By: Antoine Rebérioux (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Gwenael Roudaut (Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)
    Abstract: – This paper examines the evolution of within-board gender inequality following the adoption of a board-level gender quota for French listed companies in 2011. We show that the quota has succeeded in opening the doors of boardrooms to new, unseasoned women, who present distinctive characteristics. However, conditional on these characteristics, we provide evidence that female new comers are less likely that their male counterparts (both seasoned and new comers) to hold key positions within boards (namely, audit, compensation and nominating committee membership and chairing). This positional segregation is the main driver of a within-firm gender fees gap that amounts to 5.5% post-quota, as against 3.3% pre-quota.
    Keywords: gender inequality,board gender quota,board committees,gender fees gap
    Date: 2017–10–18
  5. By: Giovanni Dell'Ariccia; Dalida Kadyrzhanova; Camelia Minoiu; Lev Ratnovski
    Abstract: We study bank portfolio allocations during the transition of the real sector to a knowledge economy in which firms use less tangible capital and invest more in intangible assets. We show that, as firms shift toward intangible assets that have lower collateral values, banks reallocate their portfolios away from commercial loans toward other assets, primarily residential real estate loans and liquid assets. This effect is more pronounced for large and less well capitalized banks and is robust to controlling for real estate loan demand. Our results suggest that increased firm investment in intangible assets can explain up to 20% of bank portfolio reallocation from commercial to residential lending over the last four decades.
    Keywords: Intangible capital;bank lending, commercial loans, real estate loans, liquid assets, Financial Markets and the Macroeconomy, Government Policy and Regulation
    Date: 2017–11–07

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