nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2018‒09‒17
eight papers chosen by

  1. Management accountants? role in moving towards sustainability reporting system of Thai-listed companies By PHANTHIPA SRINAMMUANG; Neungruthai Petcharat; Neungruthai Petcharat
  2. Macroeconomic variables and current account balance in Namibia By Eita, Joel Hinaunye; Manuel, Victoria; Naimhwaka, Erwin
  3. Should there be lower taxes on patent income? By Fabian Gaessler; Bronwyn H. Hall; Dietmar Harhoff
  4. The Role of Corporate Taxes in the Decline of the Startup Rate By Julian Neira; Rish Singhania
  5. Sweat Equity in U.S. Private Business By anmol bhandari; Ellen McGrattan
  6. Tax Evasion with a Conscience By Dufwenberg, Martin; Nordblom, Katarina
  7. Capital Taxes and Redistribution: The Role of Management Time and Tax Deductible Investment By Juan Carlos Conesa; Begona Dominguez
  8. Balance Sheet Outlook: Strong but Deteriorating Financial Positions on Grain Farms By Schnitkey, Gary

  1. By: PHANTHIPA SRINAMMUANG (Faculty of Business Administration, KASETSART UNIVERSITY); Neungruthai Petcharat (Gulf College of Oman); Neungruthai Petcharat (Gulf College of Oman)
    Abstract: This study examines (1) management accountants? roles in driving sustainable success to create a corporate sustainability, (2) environmental information in annual reports based on the indicators of the Global Reporting Initiatives (GRI), and (3) environmental information in the reports and the information identified by the environmental management accounting (EMA) practices. Management accountants drive as a collaborator with a company to provide environmental information incorporating in the reports for investment decisions. A set of survey is created to conduct environmental performance indicators in annual reports of 2011 and 2012 of two-hundred listed companies in Thailand. Regression analysis is considered appropriate for this study to analyse the relationship among variables. The results reveal that environmental information incorporated in annual reports is positively relevant to the indicators of the GRI guidelines. Environmental information in the reports is also significantly related to the data identified based on the EMA practices. Although management accountants are not fully involved in capturing data, they are intending to play an important role in creating sustainable value towards a corporate sustainability. Thus, management accountant?s roles in driving as a collaborator with a company are related to creating a corporate sustainability from promoting environmental sustainability significantly.
    Keywords: Management accountants? role, corporate sustainability, Environmental Management Accounting (EMA) practices, Environment Performance Indicators, Thailand
    JEL: M41
    Date: 2018–06
  2. By: Eita, Joel Hinaunye; Manuel, Victoria; Naimhwaka, Erwin
    Abstract: This paper investigates macroeconomic determinants of the current account balance in Namibia. The results show that there is evidence of twin deficit hypothesis in Namibia. Evidence of twin deficit hypothesis suggest that it is important for Namibia to have fiscal discipline in order to improve its current account. Increase in capital flows, real GDP or per capita, results in a deterioration of the current account. Increase in interest rate, commodity prices and population cause the current account balance to improve. This suggest that contractionary monetary policy contributed to reduction of unproductive imports and improved the current account balance.
    Keywords: current account, balance of payments, cointegration, Namibia
    JEL: C19 F3 F30 F32
    Date: 2018–03–13
  3. By: Fabian Gaessler (Institute for Fiscal Studies); Bronwyn H. Hall (Institute for Fiscal Studies and University of California, Berkeley); Dietmar Harhoff (Institute for Fiscal Studies and University of Munich)
    Abstract: A “patent box” is a term for the application of a lower corporate tax rate to the income derived from the ownership of patents. This tax subsidy instrument has been introduced in a number of countries since 2000. Using comprehensive data on patent filings at the European Patent Office, including information on ownership transfers pre- and post-grant, we investigate the impact of the introduction of a patent box on international patent transfers, on the choice of ownership location, and on invention in the relevant country. We find that the impact on transfers is small but present, especially when the tax instrument contains a development condition and for high value patents (those most likely to have generated income), but that invention itself is not affected. This calls into question whether the patent box is an effective instrument for encouraging innovation in a country, rather than simply facilitating the shifting of corporate income to low tax jurisdictions.
    Keywords: patent box, IP box, innovation tax, BEPS, EPO, invention incentive, patent ownership
    Date: 2018–07–25
  4. By: Julian Neira (University of Exeter); Rish Singhania (University of Exeter)
    Abstract: The Role of Corporate Taxes in the Decline of theStartup Rate∗Julian NeiraUniversity of ExeterRish SinghaniaUniversity of ExeterOctober 26, 2017AbstractThe business startup rate in the United States has exhibited a large secular declinein recent decades. The reasons behind the decline are not well understood. This paperhypothesizes that the startup rate declined in large part because corporate taxes raisedthe opportunity cost of entrepreneurship. We formalize this thesis using a model ofoccupational choice that features firm entry and exit. Quantitatively, the model accountsfor much of the decline in the startup rate. Taxes alone account for one-fifth of thedecline. Cross-sectoral patterns in US data support our results.
    Date: 2018
  5. By: anmol bhandari (university of minnesota); Ellen McGrattan (University of Minnesota)
    Abstract: This paper uses theory disciplined by U.S.~national accounts and business census data to measure private business sweat equity, which is the value of time to build customer bases, client lists, and other intangible assets. We estimate an aggregate sweat equity value of 0.65 times GDP, with little cross-sectional dispersion in valuations when compared to business net incomes and large cross-sectional dispersion in rates of return. Our estimate of sweat equity is close to the estimate of marketable fixed assets used in production by private businesses, implying a high ratio of intangible to total assets. We use the model to evaluate the impact of greater tax compliance of private businesses and lower tax rates on the net income of both privately held and publicly traded businesses.
    Date: 2018
  6. By: Dufwenberg, Martin (University of Arizona, University of Gothenburg); Nordblom, Katarina (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: How do moral concerns affect tax compliance and the need for audits? We propose answers by exploring an inspection game, modified to incorporate belief-dependent taxpayer guilt, unawareness, and third-party audience effects. Novel conclusions are drawn regarding whose behavior is affected by moral concerns (it's the authority's more than the citizen's) and regarding policy, in particular fines vs. jail, the role of information campaigns, and the use of a principle of public access whereby tax returns are made public information.
    Keywords: tax evasion; guilt; inspection game; policy
    JEL: D03 H26 H83
    Date: 2018–08
  7. By: Juan Carlos Conesa; Begona Dominguez
    Abstract: Should capital income be taxed for redistributional purposes? Judd (1985) suggests that it should not. He finds that the optimal capital tax is zero at steady state from the point of view of any agent. This paper re-examines this question in an innitely-lived worker-capitalist model, in which capitalists devote management time to build capital. Two forms of capital taxation are considered: one for which investment is not tax deductible (corporate tax) and a second one for which investment is fully and immediately tax deductible (dividend tax). Our main results are as follows. The optimal corporate tax is zero at steady state from the point of view of any agent. However, the optimal dividend tax is in general not zero at steady state and depends on preference parameters, life-time wealth and the point of view (Pareto weights) of the benevolent policymaker. For Pareto weights that lead to Pareto-improving reforms, we find that labor tax rates should be eliminated while dividend tax rates should be increased to around 36 percent at steady state.
    Date: 2018
  8. By: Schnitkey, Gary
    Keywords: Crop Production/Industries, Financial Economics

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.