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on Accounting and Auditing |
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Issue of 2020‒11‒02
six papers chosen by |
| By: | Georgieva, Daniela; Bankova, Diana |
| Abstract: | An object of analysis in the paper is the quality of the information in the audit reports of forestry in Bulgaria, as a basis for attracting investments, increasing the confidence in the enterprises and achieving sustainability of the industry in macro level. The subject of analysis are the annual financial statements of public and private forestry for the period 2007 - 2017. A priority objective is to analyze the auditor's opinions on the annual financial statements of the Bulgarian forestry. An additional objective is to analyze the overall reporting of the financial-economic status and development of enterprises for the period 2007 - 2017. Main research tasks are: 1) to study the financial development and strategy of public and private forestry, as well as to compare it with the adopted and applied accounting policies; 2) to examine the audited opinions of the financial statements of the target group enterprises for 2017, as well as to analyze the quality of the audit performed and in this respect the reliability of the financial statements. The applied research methods are based on logical, deductive and comparative methods, as well as methods of analysis and synthesis. Main conclusions of the study are: violations of the control environment, lack of disclosed information in the financial statements of enterprises and the application of accounting policies irrelevant to the financial and economic status of organizations. |
| Keywords: | forestry, audit, fraud, disclosures, crimes |
| JEL: | M41 M42 M49 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103246&r=all |
| By: | Paulina Sutrisno (Accounting Department, Trisakti School of Management, Indonesia Author-2-Name: Kashan Pirzada Author-2-Workplace-Name: Asian Research Institute for Corporate Governance (ARICG) and Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok, Malaysia 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 study aims to examine whether audit firm size mitigates the relationship between CEO overconfidence and tax avoidance. CEO overconfidence has the characteristics of a very high level of self-confidence which influences the pattern of thought and the way they make strategic decisions. CEO overconfidence has a tendency to avoid taxes. It aims to show competence in tax management and raise funds for investment. External party oversight, such as by audit firms, will mitigate the relationship between CEO overconfidence and tax avoidance through an attitude of independence, as well as competence and function as examiners of the company's financial reporting. Methodology/Technique - This study uses a sample of Indonesian non-financial companies in the period 2013-2017. This study analyses the data with statistical methods using linear multiple regression. Finding - The results of this study indicate that CEO overconfidence is positively related to tax avoidance, while audit firm size is negatively related to tax avoidance. However, this study has not been able to prove the influence of audit firm size on the relationship between CEO overconfidence and tax avoidance. |
| Keywords: | CEO overconfidence; Tax Avoidance; Audit Firm Size; Big 4; Book Tax Difference. |
| JEL: | M41 M49 |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr188&r=all |
| By: | Clarissa Tonay (Trisakti School of Management, Jakarta, Indonesia Author-2-Name: Paulina Sutrisno Author-2-Workplace-Name: Trisakti School of Management, Jakarta, Indonesia 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 study aims to examine the effect of corporate governance and several factors of corporate financial characteristics on earnings management. Corporate governance mechanisms such as an independent board, board size, and audit committee size are expected to be able to limit the ability of management to carry out earnings management. Meanwhile, a company's financial characteristics such as corporate strategy, company age, operating cash flow, company growth, profitability, company size and leverage are predicted to affect earnings management. Methodology – Many previous studies have involved the examination of corporate governance mechanisms and corporate financial characteristics of earnings management however, the results of those studies give rise to inconsistencies. Hence, this study seeks to re-examine the existence of corporate governance mechanisms and corporate financial characteristics of earnings management. The sample in this research is non-financial companies listed on the Indonesian Stock Exchange between 2016 and 2018. Findings – This data in this study is analysed using statistical methods such as multiple regression linear. The results of this study indicate that one mechanism of corporate governance, the size of the audit committee, has a positive effect on earnings management, while the financial characteristics of companies such as company size and operating cash flow negatively affect earnings management. Novelty – Other corporate financial characteristics such as corporate strategy, company age, operating cash flow and profitability have a positive effect on earnings management. Meanwhile, the other variables such as board size, leverage and company growth do not have an influence on earnings management. Type of Paper - Empirical. |
| Keywords: | Earnings Management; Corporate Strategy; Audit Committee Size; Company Age; Operating Cash Flows. |
| JEL: | G3 G34 G39 |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr172&r=all |
| By: | Clemens Fuest; Felix Hugger; Susanne Wildgruber |
| Abstract: | While corporate tax rates in OECD countries declined over the last decades, revenues from corporate taxation relative to GDP remained remarkably stable. This paper uses a comprehensive firm-level dataset to provide an explanation for this rate-revenue puzzle in corporate taxation. Focusing on the period 1995-2016, we show that the reduction in corporate tax rates was counterbalanced by a pronounced increase in corporate profits before taxes. We decompose the rise in profits into changes in EBITDA, depreciation, and financial profits. On average, these three factors contributed almost equally to the tax base expansion, albeit differently across sectors, countries, and firm sizes. |
| Keywords: | corporate income taxation, corporate tax revenues, corporate profitability |
| JEL: | H25 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8605&r=all |
| By: | Ulrich Glogowsky |
| Abstract: | The desirability of inheritance and gift taxes depends on individuals’ tax responsiveness. This paper demonstrates how strongly, and in what way, the German inheritance and gift tax influences taxpayer behavior. To that end, it combines administrative data with cross-bracket tax variation: a convex kink in the tax liability precedes a concave kink. Extending the bunching approach to such double-kinked tax schedules, I document that individuals tailor their taxable wealth transfers to the schedules. One type of response dominates for inheritances: testators engage in testament planning. The magnitude of the testament-planning response is comparable to that of inter vivos gifts. However, neither the overall responses of gifts nor those of inheritances heavily interfere with tax revenue collection: the associated short-run net-of-tax elasticities of taxable wealth transfers lie below 0.1. |
| Keywords: | wealth-transfer tax, inheritance tax, gift tax, estate tax, real responses, tax avoidance, tax evasion, behavioral responses, bunching at kinks |
| JEL: | H20 H20 H21 H24 H26 H31 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8628&r=all |
| By: | Oluseun Paseda Ph.D (Department of Banking and Finance, University of Ibadan, Nigeria Author-2-Name: Babatunji Samuel Adedeji Ph.D. Author-2-Workplace-Name: Department of Accounting and Finance, School of Business and Economics, Universiti Putra Malaysia. 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 - Empirical finance literature has added a new twist to the debt conservatism puzzle within the broader capital structure puzzle, namely the phenomenon of zero leverage. Motivated by Strebulaev and Yang (2013), this study investigates the attributes of zero leverage firms in Nigeria in an attempt to add a developing country perspective to the zero-leverage phenomenon observed in firms. Methodology/Technique - The non-financial corporations quoted on the Nigerian Stock Exchange (NSE) for the period 1999-2014 constitute the population of the study. Firms with market leverage ratios ranging from 0% to 5% met the criteria for inclusion. Panel data regression techniques such as the generalized method of moments (GMM) and two stage least squares (2SLS) were used in the study. Finding - Zero leverage is persistent across 13 industries and is a declining function of the marginal tax rate, firm size, profitability, and liquidity. Firms that follow a zero-leverage (and almost zero-leverage) policy have higher growth opportunities, more tangible assets, pay higher dividends, are older, and have access to debt markets. Non-debt tax shields do not explain zero-leverage behaviour. Originality/Value - This study addresses the gaps related to the questions of why and how firm-specific attributes affect zero leverage behaviour among Nigerian quoted firms. It sheds light on the economic mechanisms driving zero leverage phenomenon within firms with high debt capacity. |
| Keywords: | Capital Structure; Zero Leverage Puzzle; Tax Benefits; Debt Capacity; Financing Decisions. |
| JEL: | G30 G32 |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr187&r=all |