nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2020‒11‒23
nine papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Pengaruh Efisiensi Manajemen Modal Kerja Terhadap Kinerja Operasi Perusahaan (Studi Pada Indexperusahaan Manufaktur Bursa Efek Indonesia) By Madi, Riski Amalia; Akzan, Al
  2. Comprehensive Financial Modeling of Solar PV Systems By Baschieri, Davide; Magni, Carlo Alberto; Marchioni, Andrea
  3. Taxation, Automation Capital, and the Functional Income Distribution By Süssmuth, Bernd; Irmen, Andreas; Heer, Burkhard
  4. The Incidence of VAT Evasion By Zareh Asatryan; David Gomtsyan
  5. Improving nature’s visibility in financial accounting. By C. Feger; Alexandre Rambaud
  6. Redistributive Income Taxation with Directed Technical Change By Loebbing, Jonas
  7. The Structure of Business Taxation in China By Zhao Chen; Yuxuan He; Zhikuo Liu; Juan Carlos Suárez Serrato; Daniel Yi Xu
  8. The Inheritance and Gift Tax in Germany - Reform Potentials for Tax Revenue, Efficiency and Distribution By Beznoska, Martin; Hentze, Tobias; Stockhausen, Maximilian
  9. Property Taxes and Dynamic Inefficiency: A Correction of a "Correction" By Martin F. Hellwig

  1. By: Madi, Riski Amalia (Economic and Bussiness Faculty); Akzan, Al
    Abstract: Penelitian ini bertujuan untuk mengkaji secara empiris faktor-faktor yang mempengaruhi efisiensi manajemen modal kerja terhadap kinerja operasi perusahaan. Penelitian ini diuji dengan lima variabel independen yaitu cash conversion cycle (CCC)), current ratio(CR), Net Working Capital Ratio (NWCR), Current Assets Turnover (CAT), Inventory Turnover dan satu variabel dependen yaitu Earning Before Interest Tax(EBIT). Objek pada pada penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia, dengan menggunakan teknik Purposive sampling. Penulis memilih dua puluh enam perusahaan sebagai sampel. Teknik analisis yang digunakan adalah analisis regresi linier berganda dan uji hipotesis dan juga dilakukan uji asumsi klasik yang terdiri dari uji normalitas, uji multikolineritas, uji heterokedastisitas, uji autokerasi Hasil penelitian ini menemukan bahwa variabel cash conversion cycle (CCC)) berpengaruh positif dan signifikan terhadap dan Earning Before Interest Tax(EBIT), current ratio(CR) berpengaruh positif signifikan terhadap Earning Before Interest Tax(EBIT), Net Working Capital Ratio (NWCR) berpengaruh positif dan tidak signifikan terhadap Earning Before Interest Tax(EBIT), Current Assets Turnover (CAT) berpengaruh negative signifikan terhadap Earning Before Interest Tax(EBIT), dan Inventory Turnover berpengaruh positif signifikan terhadap Earning Before Interest Tax(EBIT).
    Date: 2020–11–02
  2. By: Baschieri, Davide; Magni, Carlo Alberto; Marchioni, Andrea
    Abstract: The adoption of a photovoltaic system has positive environmental effects, but the main driver of the choice in the industrial and commercial sector is economic profitability. Switching from acquisition of energy to production of energy is an investment with costs (e.g. leasing annual payment, O&M costs, capital expenditure) and benefits (e.g. savings in the electric bill, sale of the energy exceeding consumptions). In this work, we use an accounting-and-finance model to calculate the Equity Net Present Value in different scenarios and a sensitivity-analysis method (Finite Change Sensitivity Index) to explain the reasons for differences in results. This technique enables identifying the contribution of any input factor in the output value variation. In this way, the investor can draw attention on the most significant critical variables in the initial estimations to ensure success in forecasting.
    Keywords: photovoltaic, economic analysis, financial modelling, financing, estimation, decision
    JEL: C60 C63 C67 G00 G30 G31 G32 G35 M41 O13
    Date: 2020–09–10
  3. By: Süssmuth, Bernd; Irmen, Andreas; Heer, Burkhard
    Abstract: The functional income distribution in the US and most OECD countries has been characterized by an increasing capital income share and a declining wage share over the last decades. We present new evidence for the US economy that this fact is not only explained by technical change and globalization, but also by the dynamics of capital and labor income taxation, automation capital, and population growth. In the empirical analysis, we find indications for cointegrating equations for the 1974-2008 period. Permanent effects on factor shares emanate from labor (relative to capital) tax shocks. Changes in relative factor taxation also permanently affect the use of robots. Variance decompositions reveal that taxing accounts for up to 22% and up to 35% of observed changes in the two income shares and in automation capital, respectively. In a second step, we present a standard neoclassical growth model augmented by automation capital and capital adjustment costs that is able to replicate the dynamics of the observed functional income distribution in the US during the 1965-2015 period. In particular, we demonstrate that the fall in the wage share would have been significantly smaller if labor and capital income tax rates had remained at their respective level of the 1960s.
    Keywords: Functional income distribution,labor income share,income taxes,automation capital,demography,growth
    JEL: D33 E62 O41 J11 J20
    Date: 2020
  4. By: Zareh Asatryan; David Gomtsyan
    Abstract: Who benefits from the evasion of value added taxes (VAT)? Using a reform that enforced VAT on previously non-compliant large retailers in Armenia, we estimate a one-third passthrough of the tax burden on prices. This suggests that pre-enforcement evasion rents were broadly shared with consumers through lower prices. Our theoretical and empirical results explain this low passthrough rate by the supply-chain effects and second-order compliance responses of firms to VAT enforcement. Our distributional analysis shows that households at the bottom of the income distribution benefit more from the rents of evasion.
    Keywords: value added tax, incidence, passthrough, evasion, enforcement, distributional effects
    JEL: D11 H22 H26
    Date: 2020
  5. By: C. Feger (AgroParisTech, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - UM1 - Université Montpellier 1 - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Alexandre Rambaud
    Date: 2020–04–15
  6. By: Loebbing, Jonas
    Abstract: This paper studies the implications of (endogenously) directed technical change for the design of non-linear labor income taxes in a Mirrleesian economy augmented to include endogenous technology development and adoption choices by firms. First, I identify conditions under which any progressive tax reform induces technical change that compresses the pre-tax wage distribution. The key intuition is that progressive tax reforms tend to increase labor supply of less skilled relative to more skilled workers, which induces firms to develop and use technologies that are more complementary to the less skilled. Second, I provide conditions under which the endogenous response of technology raises the welfare gains from progressive tax reforms. Third, I show that directed technical change effects make the optimal tax scheme more progressive, raising marginal tax rates at the right tail of the income distribution and lowering them (potentially below zero) at the left tail. For reasonable calibrations, the directed technical change effects of actual tax reforms on wage inequality appear to be small, but the impact of directed technical change on optimal taxes is considerable. Optimal marginal tax rates increase monotonically over the bulk of the income distribution instead of being U-shaped (as in most of the previous literature) and marginal tax rates on incomes below the median are reduced substantially
    Keywords: Optimal Taxation,Directed Technical Change,Endogenous Technical Change,Wage Inequality.
    JEL: H21 H23 H24 J31 O33
    Date: 2020
  7. By: Zhao Chen; Yuxuan He; Zhikuo Liu; Juan Carlos Suárez Serrato; Daniel Yi Xu
    Abstract: This paper documents facts about the structure of business taxation in China using administrative tax data from 2007 to 2011 from the State Taxation Administration. We first document the importance of different business taxes across industries. While corporate income taxes play an important role for manufacturing firms, these firms also remit a large share of their tax payments through the value-added tax system, through the excise tax system and through payroll taxes. Gross receipts taxes play an important role for firms in other industries, leading to spillovers that may affect the overall economy. Second, we evaluate whether the structure of China’s tax revenue matches its stage of development. A cross-country comparison of sources of government revenue shows that China collects a high share of tax revenue from taxes on goods and services and a high share of income tax on corporations. Finally, we study whether firm-level differences in effective tax rates can be an important source of allocative inefficiencies. Decomposing the variation in effective tax rates across firms, we find that government policies, including loss carry-forward provisions and preferential policies for regional, foreign, small, and high-tech firms, have significant explanatory power. Nonetheless, while effective tax rates vary along a number of dimensions, tax policy does not explain the large dispersion in the returns to factors of production across firms.
    JEL: E22 H25
    Date: 2020–11
  8. By: Beznoska, Martin; Hentze, Tobias; Stockhausen, Maximilian
    Abstract: The inheritance tax is often seen as an effective tool to reduce wealth inequality, to raise public budgets if needed, and to increase incentives to work by lowering the tax burden on labour, which is especially high in Germany according to the OECD. The purpose of this paper is therefore to shed light on the question whether the inheritance tax is a promising tool for fighting wealth inequality without having distorting effects for the economy. For this purpose, the distributional effects of inheritances on the wealth distribution are evaluated for Germany first and are set into comparison with Austria and France using data from the Household Finance and Consumption Survey (HFCS). A change in the German inheritance tax law in 2009 is further used in a difference-in-difference analysis to identify the behavioural effects of the inheritance tax change on the volume of bequests, which are large and robust for different specifications. Second, the insight from part one is applied to design an inheritance tax reform for Germany. The potential tax revenue of the reform can be estimated by using the data from the inheritance and gift tax statistics for Germany. A revenue shift from income to inheritance tax could be used to increase work incentives by cutting the marginal tax rates for the working population. However, it turns out that taxing inheritances is accompanied by significant behavioural responses of donors via tax planning. Furthermore, the introduction of a flat tax model with a broad tax base would not generate large enough additional revenue to foster relevant employment effects.
    Keywords: Inheritance taxation,wealth distribution,redistribution,inequality,labour supply
    JEL: D31 H20
    Date: 2020
  9. By: Martin F. Hellwig (Max Planck Institute for Research on Collective Goods, Bonn)
    Abstract: According to Homburg’s (2014) comment on Kim and Lee (1997), an ad-valorem property tax on land cannot cause dynamic ineffciency of equilibrium allocations in an overlapping-generations model unless the tax is "confiscatory", i.e., equal to or greater than land rents. With such a tax, Homburg claims, land would be intrinsically worthless and the market for land would be closed. The latter claims are invalid because, as a store of value, land can be traded at a positive price even if the net rate of return on land is negative.
    Keywords: Property taxes, dynamic inefficiency, overaccumulation of capital, land
    JEL: D9 E62 H21
    Date: 2020–06

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