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on Accounting and Auditing |
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Issue of 2022‒01‒31
six papers chosen by |
| By: | Marcus C. Christiansen |
| Abstract: | Current reporting standards for insurers require a decomposition of observed profits and losses in such a way that changes in the insurer's balance sheet can be attributed to specified risk factors. Generating such a decomposition is a nontrivial task because balance sheets generally depend on the risk factors in a non-linear way. This paper starts from an axiomatic perspective on profit and loss decompositions and finds that the axioms necessarily lead to infinitesimal sequential updating (ISU) decompositions, provided that the latter exist and are stable, whereas the current practice is rather to use sequential updating (SU) decompositions. The generality of the axiomatic approach makes the results useful also beyond insurance applications wherever profits and losses shall be additively decomposed in a risk-oriented manner. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.11265&r= |
| By: | Fabio Ashtar Telarico (CSEES - Centre for Southeast European Studies, Karl Franzens University Graz, FDV - Faculty of Social Sciences, University of Ljubljana) |
| Abstract: | Данъчният анализ и прогнозирането на приходите са от първостепенно значение за гарантиране на жизнеспособността и устойчивостта на фискалната политика. Въпреки това мерките, предприети за ограничаване на разпространението на неотдавнашната пандемия, представляват безпрецедентно предизвикателство за установените модели и подходи. В настоящата статия се предлага модел за прогнозиране на данъчните приходи в България за фискалните години 2020-2022 г., изграден в съответствие с препоръките на Международния валутен фонд върху набор от данни, обхващащ периода между 1995 и 2019 г. По-нататък в изследването се обсъжда действителната надеждност на официалните български прогнози, като тези данни се съпоставят с предварително оценения модел. Количествените резултати от това проучване едновременно потвърждават предполагаемото отрицателно въздействие на пандемията върху данъчните приходи и доказват, че иконометрията може да бъде коригирана, за да се получат последователни прогнози за приходите дори в сравнително неизследвания случай на България, предлагайки нови идеи на създателите на политики и застъпниците. |
| Abstract: | Tax analysis and forecasting of revenues are of paramount importance to ensure fiscal policy's viability and sustainability. However, the measures taken to contain the spread of the recent pandemic pose an unprecedented challenge to established models and approaches. This paper proposes a model to forecast tax revenues in Bulgaria for the fiscal years 2020-2022 built in accordance with the International Monetary Fund's recommendations on a dataset covering the period between 1995 and 2019. The study further discusses the actual trustworthiness of official Bulgarian forecasts, contrasting those figures with the model previously estimated. This study's quantitative results both confirm the pandemic's assumed negative impact on tax revenues and prove that econometrics can be tweaked to produce consistent revenue forecasts even in the relatively-unexplored case of Bulgaria offering new insights to policymakers and advocates. |
| Keywords: | Прогноза,данъци,ДДС,данък върху доходите на физическите лица,България,Forecast,taxation,VAT,personal income tax,Bulgaria |
| Date: | 2021–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03500128&r= |
| By: | Vazquez, Antonio B. (Mistra Center for Sustainable Markets (Misum)); Martinez, Sofia (Stockholm School of Economics) |
| Abstract: | We examine the effects of an ESG reporting mandate on firms’ corporate performance. Exploiting discontinuous ESG reporting requirements assigned to otherwise similar small and large-sized private firms, we document that ESG reporting increases firms’ corporate performance. Our evidence suggests that the mandate helps firms establishing a credible commitment with employees and customers, which allows them to enjoy higher performance. Our results are robust to a matched sample, a mixed difference-in-differences and regression discontinuity setting and to the use of alternative thresholds of ESG reporting. We contribute to the literature by providing evidence that suggests private firms benefit from reporting non-financial information. |
| Keywords: | private firms; mandatory ESG reporting; regression discontinuity design; difference-in-differences design |
| JEL: | G38 K22 M14 M41 M48 |
| Date: | 2022–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hamisu:2022_005&r= |
| By: | Kodjo Adandohoin (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Jean-Francois Brun (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | This paper investigates second wave tax transition (transfer of tax pressure from border taxation towards domestic taxation) concerns in developing countries. It essentially focuses on the compensation effects of incomes and property taxes over international trade tax revenue losses in developing countries. Using a generalized method of moment estimator, we come to the evidence that, incomes and property taxes are poor instruments to balance trade tax revenue losses of trade liberalization in these countries. However, a mediating effect of financial development in the compensation nexus driven by corporate income taxes was found. We explain this result by the fact that the use of financial sector generates paper trails to government in order to enforce and raise corporate income taxes. Financial development may progressively crowd-out informal sector and leads to business formalization. Surprising, we do not find any mediating effect of financial development in the compensation patterns with personal income taxes. Nevertheless, some heterogeneities were discovered. Financial development mediates the compensation patterns of personal income taxes in Latin American countries, while the effect holds on corporate income taxes in African countries. We conclude the paper by highlighting the important role of financial development in second generation tax transition concerns over developing countries. |
| Keywords: | Income Taxes,Property Tax,Tax Transition,Developing Countries |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03470540&r= |
| By: | Anna Thum-Thysen; Peter Voigt; Christoph Weiss |
| Abstract: | This paper investigates capital formation with a view at various tangible and intangible assets across Europe. We assess to what extent there are complementarities among different asset types, i.e. investment in one asset type affecting the productivity of an investment in another. Using novel datasets at both macro and firm level, we estimate translog production functions at different aggregation levels to assess complementarities both at the within-country and the within-sector level. At macro-level, evidence suggests complementarities between tangibles and intangibles and between National Accounts and non-National Accounts intangibles. At firm-level data, we explore more disaggregated asset classes and find that investing simultaneously in software, training of employees, and business process improvements is associated with better firm performance. Within a sector, firms tend to choose to invest either in own R&D or in embedded R&D and training. Our analysis demonstrates that policy support that aims at stimulating investment only in certain assets (while excluding others) may fall short in unlocking its own full potential. The emphasis should rather be on addressing investment bottlenecks arising from market imperfections, while remaining non-discriminatory with a view at what sort of capital deepening is envisaged, i.e. leaving it to the firm to find the most appropriate mix of assets. Accordingly, investment support programmes should generally be open to include intangible assets, notably also those not captured as such in the National Accounts, such as training and organisational capital, and help addressing challenges arising from collateralising such investments. |
| JEL: | E01 E22 O34 O4 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:152&r= |
| By: | Thum-Thysen, Anna; Voigt, Peter; Weiss, Christoph |
| Abstract: | This paper investigates capital formation with a view at various tangible and intangible assets across Europe. Using novel datasets both at macro and firm level, we estimate translog production functions to assess complementarities at different aggregation levels. At macro-level, our evidence suggests complementarities between tangibles and intangibles and between National Accounts and non-National Accounts intangibles. Using firm-level data, we explore more disaggregated asset classes and find that investing simultaneously in software, training of employees, and business process improvements is associated with better firm performance. Our analysis demonstrates that policy support that aims at stimulating investment only in certain assets may fall short in unlocking its own full potential. The emphasis should rather be on addressing investment bottlenecks arising from market imperfections, while remaining non-discriminatory with a view at what sort of capital deepening is envisaged and leaving it to the firm to find the most appropriate mix of assets. |
| Keywords: | intangible capital,asset complementarities,labour productivity,investment,innovation |
| JEL: | E01 E22 O34 O4 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eibwps:202112&r= |