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on Accounting and Auditing |
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Issue of 2018‒02‒12
four papers chosen by |
| By: | Aghion, Philippe; Akcigit, Ufuk; Lequien, Matthieu; Stantcheva, Stefanie |
| Abstract: | We study the effects of fiscal incentives for self-employment using new French tax data from 1994 to 2012. France serves as a good quasi-laboratory: It has three fiscal regimes - or modes of taxation - for the self-employed, which differ in their financial payoffs and in their administrative simplicity. These regimes have changed extensively over time - offering the opportunity to study how people learn about them and understand them. We find that the self-employed respond to the tax and administrative notches created by the eligibility thresholds: there is strong bunching right before the eligibility thresholds, which we use to estimate self-employed taxable income elasticities and the value of administrative simplicity. Even a small preference for administrative simplicity could explain the bunching observed. There is a sizable cost of tax complexity; agents are not immediately able to understand what the right regime choice is and there is evidence for costly learning over time. The cost of complexity is regressive because it affects mostly the uneducated, low income, and low skill agents. Agents who can be viewed as more informed and knowledgeable (e.g., the more educated or high-skilled) are more likely to make the correct regime choice and to learn faster |
| Keywords: | self-employment; taxation; entrepreneurship |
| JEL: | H21 |
| Date: | 2017–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86613&r=acc |
| By: | Gareeva Yuliya (National Research University Higher School of Economics); Dranev Yury (National Research University Higher School of Economics); Kucherov Alexander (National Research University Higher School of Economics) |
| Abstract: | The current worldwide tendency to transform the global economy into a knowledge economy indicates that there is a need to analyze intellectual capital and approaches to its measurement, management and influence on company value. Taking into account the intangible nature of intellectual capital its measurement is an unconventional task for researchers with tough choices of adequate proxies. In this paper, we differentiate between components of intellectual capital and focus on innovation capital. We propose a methodology to measure intellectual capital and we analyze how intellectual capital influences company value in emerging markets. For this purpose, we investigate the relation between intellectual capital and the cost of equity influencing a company’s value through a discount rate |
| Keywords: | innovation capital; intellectual capital; cost of equity; asset pricing; emerging markets |
| JEL: | G32 O3 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:79sti2018&r=acc |
| By: | Prados de la Escosura, Leandro |
| Abstract: | Spain experienced an investment boom over 1850-1874. Historians attributed a significant role to foreign capital inflow. Sudrià (2018) challenged the consensus on the basis of Moro, Nuño, and Tedde (2015) capital balance account estimates that imply a much lower capital inflow. Dishoarding of bullion and previous savings would have catered for an increasing investment demand providing the means to meet the current account deficit without causing deflation. It is argued here that the empirical basis for Sudrià's claim is flawed. Moro et al. (2015) direct appraisal of the capital balance account resulted in an underestimate of the net capital inflow and a substantial upward bias of the change in reserves. The current account deficit resulted from an inflow of capital that allowed investment to raise facilitating imports of capital goods and raw materials. Foreign capital made a significant contribution to the investment boom of 19th century and boosted Spanish performance. |
| Keywords: | Spain; Growth; Saving; Investment; Capital Inflow; Balance of Payments |
| JEL: | N13 F32 F21 |
| Date: | 2018–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cte:whrepe:26196&r=acc |
| By: | Ron Alquist; Nicolas Berman; Rahul Mukherjee; Linda Tesar |
| Abstract: | This paper examines how external finance dependence, financial development, and institutions influence brownfield foreign direct investment (FDI). We develop a model of cross-border acquisitions in which the foreign acquirer's choice of ownership structure reflects a trade-off between easing target credit constraints and the costs of operating in an environment of low institutional quality. Using a dataset of cross-border acquisitions in emerging markets, we find evidence supporting the central predictions of the model that: (i) a foreign firm is more likely to fully acquire a target firm in sectors that are more reliant on external finance, or in countries with lower financial development/higher institutional quality; (ii) the level of foreign ownership in partially foreign-owned firms is insensitive to institutional factors and depends weakly on financial factors; (iii) the share of foreign acquisitions in all acquisition activity is also higher in external finance dependent sectors, or financially under-developed/high institutional quality countries; and (iv) sectoral external finance dependence accentuates the effect of country-level financial development and institutional quality. The theory and empirical evidence provide insight into the interaction between the financial, institutional and technological determinants of North-South brown field FDI. |
| JEL: | F21 F23 F36 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24241&r=acc |