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on Accounting and Auditing |
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Issue of 2019‒04‒01
six papers chosen by |
| By: | Husaini (Faculty of Economics and Business, Bengkulu University, 38371, Bengkulu, Indonesia Author-2-Name: Saiful Author-2-Workplace-Name: Faculty of Economics and Business, Bengkulu University, 38371, Bengkulu, Indonesia Author-3-Name: Fitrawati Ilyas Author-3-Workplace-Name: Faculty of Economics and Business, Bengkulu University, 38371, Bengkulu, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective – This study aims to examine the relationship between audit committee effectiveness on Audit Report Lag (ARL), and the moderating effect of audit quality on the relationship between audit committee effectiveness and ARL. Methodology/Technique – 109 non-financial Indonesian listed companies are examined from 2012 to 2016. The data is analysed using multivariate regression analysis. Findings – The results show that audit committee effectiveness negatively affects ARL. This indicates that an effective audit committee can accelerate the delivery of audit reports. The results on the interaction between audit committee effectiveness and audit quality also negatively affects ARL. These results indicate that audit quality strengthens the influence of audit committees on the timeliness of financial reporting by reducing audit report lag. Novelty – The results show that there is a relationship of substitution between audit committee effectiveness and audit quality (Big-4) on ARL. The results of this study are consistent with agency theory which states that the implementation of corporate governance, such as an effective audit committee and audit quality, can improve the quality of financial reports. Type of Paper: Empirical. |
| Keywords: | Audit Committee Effectiveness; Audit Quality; Audit Report Lag; Agency Theory. |
| JEL: | M42 M41 |
| Date: | 2019–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr171&r=all |
| By: | Silvy Christina (Trisakti School of Management, Kyai tapa No. 20, 11440, Jakarta, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective – This research aims to empirically examine the effect of tax planning on firm value. The population of this research consists of manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2014 to 2016. Methodology/Technique – This research uses 3 recent years and uses variables not used in previous research. The 43 respondents were chosen using purposive sampling. The hypotheses were tested using multiple regressions with Eviews program to determine the relationship between each independent variable to firm value. Findings – The empirical results show that tax planning that is measured by the cash effective tax rate has a negative effect on firm value, while tax planning measured by effective cash rate and tax savings has no effect on firm value. Novelty – The study recommends the need for firms to institute more robust tax planning practices that will help reduce their effective tax liabilities and therefore improve their overall value. Firms that engage in better tax planning practices are likely to get higher firm value. Type of Paper: Empirical. |
| Keywords: | Firm Performance; Tax Planning; Effective Tax Rate; Cash Effective Tax Rate; Tax Saving. |
| JEL: | M40 M42 M49 |
| Date: | 2019–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr167&r=all |
| By: | Andrea Caponera (Bank of Italy); Carlo Gola (Bank of Italy) |
| Abstract: | TIn this study, we investigate the economic characteristics of bitcoin and similar crypto-assets. Following an introduction to the blockchain protocol, the role of exchanges and of digital wallet providers, we consider the regulatory measures adopted in various jurisdictions. Lastly, we examine the accounting and prudential aspects related to crypto-assets, of which significant uncertainties still remain. The paper provides a taxonomy of crypto-assets, and describes the basic features of the initial coin offerings (ICOs) and related aspects. The literature shows that bitcoin, and similar crypto-assets, do not fully fall within the category of money and financial instruments. This class of digital tokens, based on a permissionless distributed ledger technology (DLT), is highly volatile and absent of intrinsic value. The instability of their price, which is often undetermined, must be considered when evaluating these instruments from an accounting and prudential standpoint. |
| Keywords: | bitcoin, crypto-assets, blockchain, digital tokens, initial coin offerings, exchanges |
| JEL: | E40 E42 E51 G21 G28 K20 M40 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_484_19&r=all |
| By: | Friska Firnanti (Accounting, Trisakti School of Management, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective – This research aims to obtain the empirical evidence on the influence of dividend policy, income tax, firm size, profitability, and leverage on income smoothing. Methodology/Technique – In this research, income smoothing is proxied with the Eckel index and logistic regression is used to test the hypothesis. The research population consists of non-financial companies listed on the Indonesian Stock Exchange from 2013 to 2016. The sampling method used in this research is purposive sampling. The number of companies selected is 79 with 316 data. Findings – The results show that dividend policy, income tax, profitability, and leverage all have an influence on income smoothing. Meanwhile, firm size has no significant influence on income smoothing. Novelty – These findings are consistent with a firm's dividend policy and income tax having an incremental impact on income smoothing behavior. Type of Paper: Empirical. |
| Keywords: | Income Smoothing; Dividend Policy; Income Tax; Firm Size; Profitability; Leverage. |
| JEL: | M40 M41 M49 |
| Date: | 2019–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr169&r=all |
| By: | Michael M. Batty; Jesse Bricker; Joseph S. Briggs; Elizabeth Ball Holmquist; Susan Hume McIntosh; Kevin B. Moore; Eric Nielsen; Sarah Reber; Molly Shatto; Kamila Sommer; Tom Sweeney; Alice M. Henriques |
| Abstract: | This paper describes the construction of the Distributional Financial Accounts (DFAs), a new dataset containing quarterly estimates of the distribution of U.S. household wealth since 1989, and provides the first look at the resulting data. The DFAs build on two existing Federal Reserve Board statistical products --- quarterly aggregate measures of household wealth from the Financial Accounts of the United States and triennial wealth distribution measures from the Survey of Consumer Finances --- to incorporate distributional information into a national accounting framework. The DFAs complement other existing sources of data on the wealth distribution by using a more comprehensive measure of household wealth and by providing quarterly data on a timely basis. We encourage policymakers, researchers, and other interested parties to use the DFAs to help understand issues related to the distribution of U.S. household wealth. |
| Keywords: | Economic data ; Economic measurement ; Household economics ; Inequality ; National accounts ; Wealth distribution ; Wealth dynamics |
| JEL: | N3 E01 H5 H31 |
| Date: | 2019–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2019-17&r=all |
| By: | Mehmet Selman Colak |
| Abstract: | There are several indicators and univariate ratios that measure the soundness of firms' balance sheets (Leverage, profitability, liquidity ratio, etc.). However, each indicator alone cannot measure the overall financial risk or the financial distress level of firms. In this study, we measure the financial strength of the real sector firms quoted in Borsa Istanbul (BIST) by producing a composite index score which is a combination of several different corporate finance ratios. In the first part, we will apply multiple discriminant analysis to the variables used in Altman Z-score (1968), which is the most prevalent composite index score measuring the firms’ financial risks in the literature. In the second part, a new index, named as MFA-score (Multivariate Firm Assessment Score) will be introduced by using the ratios that best explain the characteristics of the BIST companies. Both the tailored version of Altman Z-score and our new index score have a predictive power around 90 percent. Furthermore, MFA-score is capable of detecting the impact of macro-economic developments on firm balance sheets, which enables us to use MFA-score as an early warning indicator of financial distress for Turkish firms. Our analyses with MFA-score suggest that non-exporter firms and firms with FX open position have relatively weaker balance sheets. |
| Keywords: | Balance sheets, Financial risk, Altman Z-score, Multiple discriminant analysis, Financial distress, MFA-score |
| JEL: | G30 G33 C18 C43 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1904&r=all |