nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2021‒09‒20
seven papers chosen by

  1. Why Minimum Corporate Income Taxation Can Make the High-Tax Countries Worse off: the Compliance Dilemma By Hindriks, Jean; Nishimura, Yukihiro
  2. Making profits by leading retailers in the digital transition: A comparative analysis of Carrefour, Amazon and Wal-Mart (1996-2019) By Céline Baud; Cédric Durand
  3. Mesurer le revenu des exploitations agricoles françaises : Analyse comparée sur 15 ans d’indicateurs issus du Rica et de la MSA By Laurent Piet; Vincent Chatellier; Nathalie Delame; Philippe Jeanneaux; Cathie Laroche-Dupraz; Aude Ridier; Patrick Veysset
  4. Does Whistleblowing on Tax Evaders Reduce Ingroup Cooperation? By Philipp Chapkovski; Luca Corazzini; Valeria Maggian
  5. Revitalisasi BUMDesa Melalui Penelolaan Potensi Lokal Untuk Mewujudkan BUMDesa Yang Sehat Dan Mandiri By Hidayat, Muhammad; Latief, Fitriani; hidayah, Nur; Asbara, Nurkhalik Wahdanial
  6. Less information, more comparison, and better performance: evidence from a field experiment By Eyring, Henry; Ferguson, Patrick J.; Koppers, Sebastian

  1. By: Hindriks, Jean (Université catholique de Louvain, LIDAM/CORE, Belgium); Nishimura, Yukihiro (Osaka University)
    Abstract: Minimum taxation means that if a multinational enterprise (MNE) declares its operations in a jurisdiction taxing less than the minimum tax, the countries where the real economic activity takes place would have the right to tax the difference. There is a revival of the minimum tax standard for two reasons. First, there is concern about the complexity of assigning taxing rights and the effectiveness of profit-splitting rules in eliminating profit shifting. Second, the minimum tax standard has the merit of tackling multinational tax avoidance at its root. However, this argument ignores the strategic interaction between minimum taxation and tax compliance. Building upon Hindriks and Nishimura (2021), we develop a framework in which effective international tax compliance requires enforcement coordination between countries (e.g. exchange of information). We show that under sufficient market asymmetry (translating into the tax differential), minimum taxation may induce the low-tax countries to withdraw from international tax compliance agreements. We then show that such a breakdown of cooperation can make the high-tax country worse off compared to the absence of minimum taxation.
    Keywords: profit shifting ; tax competition ; tax enforcement
    JEL: C72 F23 F68 H25 H87
    Date: 2021–07–28
  2. By: Céline Baud; Cédric Durand (UNIGE - Université de Genève, Faculté des sciences de la société, Département d'histoire, économie et société, CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This contribution documents the contrasting fate of three key actors of the retail industry since the mid-nineties: Carrefour, Wal-Mart and Amazon. Stylized facts about their respective financial trajectories and a description of their engagement with digitalization allow to identify their distinct dynamics. Through a combination of accounting, business and economic analyses, this paper clarifies the underlying logics of profit making in the context of retail digitalization and provides new insights concerning the role of fixed costs leveraging in the digital age.
    Keywords: Retailing,digitalization,financialization,profits,accounting JEL codes: L81,L22,M41,D22,G32
    Date: 2021–09–02
  3. By: Laurent Piet; Vincent Chatellier; Nathalie Delame; Philippe Jeanneaux; Cathie Laroche-Dupraz; Aude Ridier; Patrick Veysset
    Abstract: [in French] This article presents an analysis of the indicators used to measure farm income in France. While the chart of accounts defines the precise method of calculation of various intermediate management balances (including the gross added value, the gross operating surplus and the farm income), the statistical sources used to discuss the question of the level of 'income' of French farmers are diverse and the indicators used are not always homogeneous. This sometimes results in a fragility in the public expression on “farmers' income”. By matching two distinct sources of information over fifteen years (2003 to 2017), namely the Farm Accounting Data Network (Rica) produced by the Ministry of Agriculture and the database for self-employed contributors (COTNS) of the Caisse Centrale de la Mutualité Sociale Agricole (MSA), this article compares the level of several of these indicators. The matching was carried out using the SIRET number of the farms and methodological work was carried out so that the scope of the farms is common to both databases. It is thus highlighted that the 'agricultural profit' (from the MSA) is, on average, one third lower than the current result before tax (from the Rica), and that the amount of private withdrawals is weakly correlated to the accounting result or agricultural profit. Finally, a more specific analysis of ‘low incomes’ shows that, while the frequency of occurrence of such events obviously depends on the threshold chosen, the years 2009 and 2016 were particularly bad and cannot be considered representative of the average situation observed over the entire studied period.
    Keywords: Farm income, FADN, MSA, France
    JEL: Q12 H25 D31
    Date: 2021
  4. By: Philipp Chapkovski (National Research University Higher School of Economics, Russian Federation); Luca Corazzini (Department of Economics, University Of Venice CÃ Foscari); Valeria Maggian (Department of Economics, University Of Venice CÃ Foscari)
    Abstract: Whistleblowing is a powerful and rather inexpensive instrument to contrast tax evasion. Despite the deterrent effects on tax evasion, whistleblowing can reduce trust and undermine agents’ attitude to cooperate with group members. Yet, no study has investigated the potential spillover effects of whistleblowing on ingroup cooperation. This paper reports results of a laboratory experiment in which subjects participate in two consecutive phases in unchanging groups: a tax evasion game, followed by a generalized gift exchange game. Two dimensions are manipulated in our experiment: the inclusion of a whistleblowing stage in which, after observing others’ declared incomes, subjects can signal other group members to the tax authority, and the provision of information about the content of the second phase before the tax evasion game is played. Our results show that whistleblowing is effective in both curbing tax evasion and improving the precision of tax auditing. Moreover, we detect no statistically significant spillover effects of whistleblowing on ingroup cooperation in the subsequent generalized gift exchange game, with this result being unaffected by the provision of information about the experimental task in the second phase. Finally, the provision of information does not significantly alter subjects’ (tax and whistleblowing) choices in the tax evasion game: thus, knowledge about perspective ingroup cooperation did not alter attitude towards whistleblowing.
    Keywords: Tax evasion, whistleblowing, ingroup cooperation, spillover effects, laboratory experiment
    JEL: H26 C90 D02
    Date: 2021
  5. By: Hidayat, Muhammad (STIE Nobel Indonesia); Latief, Fitriani; hidayah, Nur; Asbara, Nurkhalik Wahdanial
    Abstract: This community service activity was carried out in Kabba Village which was intended to provide assistance related to the revitalization of the BUMDes in Kabba Village. This service was carried out in two stages, namely field observations and implementation of assistance through the Focus Group Discussion (FGD) method which focused on three problems, namely Identification of Business Prospects, Selection of appropriate businesses and assistance in preparing BUMDes Financial Reports. From the FGD, it can be concluded that there are three prospective businesses to be managed and appropriate business analysis steps have also been submitted In this service activity, In this community service, training on the preparation of financial reports is also carried out which is intended to make sure that financial statements can be prepared in accordance with accounting standards in Indonesia.
    Date: 2021–08–15
  6. By: Eyring, Henry; Ferguson, Patrick J.; Koppers, Sebastian
    Abstract: We use a field experiment in professional sports to compare effects of providing absolute, relative, or both absolute and relative measures in performance reports for employees. Although studies have documented that the provision of these types of measures can benefit performance, theory from economic and accounting literature suggests that it may be optimal for firms to direct employees’ attention to some types of measures by omitting others. In line with this theory, we find that relative performance information alone yields the best performance effects in our setting—that is, that a subset of information (relative performance information) dominates the full information set (absolute and relative performance information together) in boosting performance. In cross-sectional and survey-data analyses, we do not find that restricting the number of measures shown per se benefits performance. Rather, we find that restricting the type of measures shown to convey only relative information increases involvement in peer-performance comparison, benefitting performance. Our findings extend research on weighting of and responses to measures in performance reports.
    Keywords: Wiley deal
    JEL: M40
    Date: 2021–05–01
    Abstract: This study aims to determine and analyze the picture of the implementation of the role and oversight of the implementation of regional government affairs conducted by the Inspectorate of Deli Serdang and constraints faced by local governments in Deli Serdang Region. This research use descriptive method with qualitative approach technically, to illustrate the operational activities and the play is carried out by the inspectorate of Deli Serdang. Thus the data source is the people or individuals who fully understand the problems studied and formally involved in the regulatory process. The results concludes that the supervisory role through internal audits of the implementation of regional government affairs in Deli Serdang by District Inspectorate has been implemented properly. However there are also some disadvantages which become information for planning improvements in the supervision of the future. Within the framework of optimizing the role and function as an internal auditor, Deli Serdang District Inspectorate is still experiencing constraints such as human resource constraints, Operational Standards and the constraints that have not been going well.
    Date: 2021–02–28

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