nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2020‒02‒24
six papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Contribution à l'étude de la qualité de l'audit : une approche fondée sur le management des équipes et le comportement des auditeurs By Inès Gaddour; Jean-François Casta
  2. Impact of auditor rotation on audit quality in the Indian context By Sudershan Kuntluru; Athira A
  4. The relation between territoriality of corporate taxation and economy By Jean-Marie Monnier
  5. Readability of Indian Accounting Standards and International Financial Reporting Standards By Rachappa Shette
  6. Dealer Balance Sheets and Corporate Bond Liquidity Provision By Tobias Adrian; Nina Boyarchenko; Or Shachar

  1. By: Inès Gaddour (DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique); Jean-François Casta (DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This study develops and empirically tests an explanatory model in order to study the dysfunctional behaviors of financial auditors in France. it proposes extending the scope of the determinants in a relational and managerial perspective. To this end, this research mobilizes mainly Leader-ember Exchange theory (LMX), but also the role modeling and the assessment style of auditors performance. The results show that the three dimensions of Leader Member-Exchange (LMX), namely affection, loyalty and contribution have a negative and significant impact on the adaptivebehaviors (respectively unprofessional behaviors : CNP, mismanagement of the audit team : MGEand Quality-Threatening Behavior : QTB). Also, results highlight under the effect of mimetic, managerial behaviors adopted by a superior have been shown to reduce the MGE, but also QTB and CNP. In addition, it was revealed that a favorable perception of organizational support and anevaluation focused on social criteria result in less QTB and MGE respectively.
    Abstract: Cette étude développe et teste empiriquement un modèle explicatif des comportements dysfonctionnels des auditeurs financiers en France. Elle propose d'étendre le périmètre des déterminants sous un angle relationnel et managérial. A cette fin, cette recherche mobilise principalement l'approche de la relation supérieur - subordonné (LMX), mais aussi le "role modeling" et le style d'évaluation de la performance des auditeurs.
    Keywords: Audit légal,Comportements dysfonctionnels,Management des équipes d'audit,Théorie du LMX,Statutory audit,Audit quality,Dysfunctional behaviors
    Date: 2019
  2. By: Sudershan Kuntluru (Indian Institute of Management Kozhikode); Athira A (Indian Institute of Management Kozhikode)
    Abstract: The aim of audit is to provide a reliable independent examination of the financial statements which will be useful to users of financial statements in taking effective decisions. This study examines the impact of auditor rotation on audit quality of NSE listed companies in India. Our results show that the audit partner rotation contributes negatively to audit quality and audit firm rotation is not an important determinant of audit quality. The present study is based on a sample of 1644 NSE listed companies during the period of 2011-2018. It constitutes a large panel sample of 11205 firm-year observations on NSE listed companies in India. Our study contributes to the literature on auditor rotation and audit quality by providing evidence at both audit partner as well as audit firm level. The findings state that audit partner rotation adversely affects audit quality.
    Keywords: Audit partner rotation, Audit firm rotation, Audit quality, Discretionary accrual
    Date: 2019–06
  3. By: Jagriti Srivastava (Indian Institute of Management Kozhikode); Pankaj Kumar Baag (Indian Institute of Management Kozhikode)
    Abstract: Positive Accounting Theory (PAT) is related to dealing with such matters such as possibility regarding the choice of accounting policies by firms and in which manner the firms will react to prospective new accounting standards. In relation to this, the existing agency theory breaks down as a positive theory as it does not cater for theory of accounting regulatory development. It stems from its dependence on the rationality assumption of the investor. We need to develop affluent theories based on either better rationality assumption or which considers broader view of organisational behaviour.
    Keywords: Positive Accounting Theory, Accounting Standards, Agency Theory, Rationality
    Date: 2019–10
  4. By: Jean-Marie Monnier (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The communication is mainly of a methodological nature. It aims to emphasize the role of the three main characteristics of the new capitalism in the analysis of the territorial foundations of the corporate tax. The first part is devoted to a brief presentation of the architecture of the tax system during the Fordist period, which is the result of a process of sedimentation linked to the accumulation of successive layers of devices. However, major changes resulting from the globalisation of economy have led to a gradual imbalance between tax bases and the territoriality of the tax. This misalignment has been accentuated by the emergence of the information economy and the new capitalism. This results in the deterritorialization of potentially taxable bases.
    Abstract: La communication est principalement de nature méthodologique. Elle vise à souligner le rôle des trois caractéristiques majeures du nouveau capitalisme dans l'analyse des fondements territoriaux de l'impôt sur les sociétés. La première partie est consacrée à une rapide présentation de l'architecture du système de prélèvements durant la période fordiste qui est issu d'un processus de sédimentation lié à l'accumulation de strates successives de dispositifs. Cependant, des mutations importantes résultant de la mondialisation de l'économie ont initié un progressif désajustement entre bases taxables et territorialité de l'impôt. Ce désajustement s'est accentué avec l'émergence de l'économie de l'information et du nouveau capitalisme. Cela aboutit à la déterritorialisation des bases potentiellement taxables. Abstract The communication is mainly of a methodological nature. It aims to emphasize the role of the
    Keywords: Tax system,Corporate tax,Taxable base,New capitalism,Système fiscal,Impôt sur les sociétés,Assiette imposable,Nouveau capitalisme
    Date: 2018–06–21
  5. By: Rachappa Shette (Indian Institute of Management Kozhikode)
    Date: 2019–03
  6. By: Tobias Adrian; Nina Boyarchenko; Or Shachar
    Abstract: Regulatory reforms since the financial crisis have sought to make the financial system safer and severe financial crises less likely. But by limiting the ability of regulated institutions to increase their balance sheet size, reforms?such as the Dodd-Frank Act in the United States and the Basel Committee's Basel III bank regulations internationally?might reduce the total intermediation capacity of the financial system during normal times. Decreases in intermediation capacity may then lead to decreased liquidity in markets in which the regulated institutions intermediate significant trading activity. While recent commentary by market participants claims that this is indeed the case?a Wall Street Journal article [subscription required] notes that ?three-quarters of institutional bond investors say that liquidity provided by bond dealers has declined in the past year...??empirical studies have struggled to find evidence supporting this narrative. In this post, we summarize the findings of our recent article in the Journal of Monetary Economics that addresses the apparent disconnect between the market-participant commentary and the empirical evidence by focusing on the relationship between bond-level liquidity and financial institutions? balance sheet constraints.
    Keywords: bond liquidity; dealer constraints; regulation
    JEL: G1 G2

This nep-acc issue is ©2020 by Alexander Harin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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.