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on Accounting and Auditing |
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Issue of 2022‒05‒30
five papers chosen by |
| By: | Stefanova, Marina; Petrova, Vesela; Atanasov, Atanas; Nikolov, Emil; Nikol, Olya; Kambourova, Bilyana |
| Abstract: | BG:По подобие на финансовото счетоводство, данните за устойчивостта се превръщат в незаменим източник на информация за ефективното корпоративно управление на рисковете и възможностите пред развитието и успеха в бизнеса. Потребителите, инвеститорите и банките също започват да търсят такива данни, за да оценят стратегията и дългосрочната жизнеспособност на компаниите при вземането на инвестиционни решения. В тези компании правителствата разпознават партньор при изпълнение на ангажиментите си към Парижкото споразумение и Глобалните цели на ООН за устойчиво развитие. Различни проучвания обаче показват, че съществуващото отчитане не е съвместимо с тези цели и че липсата на интеграция с финансовите отчети означава, че предоставяната информация не е достатъчна за вземане на бизнес решения. Настоящото изследване е структурирано така, че да разкрие степента, в която задължените предприятия оповестяват пред широката общественост и потенциалните инвеститори информация за следните анализирани категории: бизнес модел, екологични и социални аспекти на своята дейност, политиките и практиките им по отношение правата на човека и борба с корупцията. Дългосрочната му цел е да допринесе за по-добрата информираност относно ролята на компаниите при създаване на добавена стойност както на пазара, така и за обществото като цяло. EN: Like financial accounting, sustainability data is becoming an indispensable source of information for effective corporate risk management and business development and success opportunities. Consumers, investors and banks are also beginning to look for such data to assess companies' strategy and long-term viability in making investment decisions. In these companies, governments recognize a partner in fulfilling their commitments to the Paris Agreement and the United Nations Global Goals for Sustainable Development. However, various studies show that existing reporting is not compatible with these objectives and that the lack of integration with financial statements means that the information provided is not sufficient for business decisions. This study is structured to reveal the extent to which obligated companies disclose to the general public and potential investors information on the following analyzed categories: business model, environmental and social aspects of their activities, their human rights policies and practices and the fight against with corruption. Its long-term goal is to contribute to better awareness of the role of companies in creating added value both in the market and for society as a whole. |
| Keywords: | non-financial reporting, Bulgaria, transparency, ESG, Directive 2014/95/EC |
| JEL: | M14 M21 M41 M48 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112363&r= |
| By: | Niels Johannesen |
| Abstract: | This paper studies how the global minimum tax shapes national tax policies and welfare in a formal model of international tax competition with heterogeneous countries. The net welfare effect is generally ambiguous from the perspective of non-havens. On the one hand, the global minimum tax raises their welfare by curbing profit shifting, which boosts government revenue. One the other hand, it lowers their welfare by increasing equilibrium tax rates in havens, which transfers real resources from non-haven firms to haven governments. The net welfare effect is unambiguously positive when the global minimum rate is so high that profit shifting ends. |
| Keywords: | profit shifting, international taxation, global minimum tax, tax avoidance multinational firms |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9527&r= |
| By: | Leila Davis; Joao de Souza |
| Abstract: | This paper builds on the literature analyzing the aggregate profit rate to describe profitability across the distribution of firms in the post-1970 U.S. economy. While median profitability mirrors well-established aggregate patterns, including a falling rate of profit through the mid- 1980s and a recovery thereafter, it also masks a striking post-1980 widening of the distribution. In this paper, we document this widening of the profitability distribution, and identify factors driving changes in profit rates at each end of the distribution. At the top, we show that, while top-end operational profit rates (operational returns on tangible capital) soar after 1980, this rise disappears when accounting for financial and intangible assets. We show that firms with high operational profit rates hold large stocks of financial and intangible assets, relative to those with high total profitability, but that larger shares of these assets fail to translate into higher returns on all assets. Thus, once accounting for post-1980 changes in asset composition, growth in top profit rates disappears. At the bottom, profit rates of the least profitable quintile of U.S. nonfinancial corporations become systematically and increasingly negative after the early 1980s. We show that this decline reflects persistently negative average profitability in new post-1970 cohorts, rather than falling profitability within continuing firms. |
| Keywords: | Profit rates; intangible assets; cash; entry dynamics |
| JEL: | B5 L1 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:2022-01&r= |
| By: | Chen, Xuyang (Université catholique de Louvain, LIDAM/CORE, Belgium); Hindriks, Jean (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | Market asymmetry between large and small countries induces tax gap that triggers profit shifting and base erosion from multinationals. Tax enforcement is the alternative to tax coordination to limit profit shifting. However, the lack of enforcement coordination makes the fight against profit shifting less effective. We consider a game in which countries differ both in (market) size and enforcement productivity (enforcement elasticity of tax revenue). Countries seek to maximize welfare (tax revenue net of enforcement cost), choosing first their enforcement level to limit profit shifting before competing in taxes. We find that enforcement leadership Pareto dominates simultaneous enforcement choices, and that the low-enforcement productivity country would be the leader. In line with the OECD/G20 BEPS project, we analyze the scope for international enforcement cooperation. We establish that Nash bargaining over enforcements (with countries competing in taxes) induces higher enforcement, tax and revenue for each country, and that the benefit of enforcement cooperation is larger for the low-enforcement productivity country. We then analyze the minimum tax reform showing that it achieves a Pareto improvement both under cooperative and non-cooperative enforcement. |
| Keywords: | Leadership, Tax enforcement, Profit shifting, Minimum tax |
| JEL: | H30 H87 C72 |
| Date: | 2021–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2021013&r= |
| By: | Marius A. K. Ring; Thor Olav Thoresen |
| Abstract: | We provide novel evidence on the linkages between capital taxation and charitable giving on three fronts. First, we use quasi-experimental variation in the annual Norwegian wealth tax to study the effect on how much households give. Inconsistent with the notion that households give more in order to reduce future wealth taxes, we find a small negative effect. This is effect is entirely driven by households paying more in wealth taxes. The extensive-margin variation has no effect, which suggests an absence of intertemporal substitution effects in giving. Second, we study bunching at an income-tax exemption threshold for giving and estimate a modest own-price elasticity that is decreasing in income, age, and wealth. Third, we show that these nominally unrelated tax incentives interact: wealth taxation increases the after-tax own-price elasticity of giving. Overall, our evidence is consistent with modest effects of capital taxation on charitable giving that are primarily driven by income effects. |
| Keywords: | charitable giving, wealth taxation, tax incentives |
| JEL: | H24 H31 H41 D64 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9700&r= |