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on Accounting and Auditing |
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Issue of 2022‒08‒22
seven papers chosen by |
| By: | Nining Ika Wahyuni (Department of Accounting, University of Jember, Indonesia Author-2-Name: Eko Ganis Sukoharsono Author-2-Workplace-Name: Department of Accounting, Brawijaya University, 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 analyze the role of accounting educators in embedding sustainability. Theory of Role is used in analyzing the parties who put their expectation on accountants to take roles in embedding sustainability and how the accountant performed that role expectation. Methodology - Educator accountants are used to represent various types of professions in the accounting field. This study uses a qualitative approach by conducting interviews with 14 accounting educators at the University of Jember, Indonesia, which registered as Certified Sustainability Reporting Specialists (CSRS) and/or Certified Sustainability Reporting Assurers (CSRA). Data were collected through observation, deep interviews, and forum group discussion. Findings - Then data were analyzed with the thematic analytic technique to find the main theme from the interview transcripts. The result shows that those accounting educators are in the right position to become the main actor in embedding sustainability. Accountants must show their involvement in sustainability embedding efforts due to pressure from various parties. Novelty - The professional organizations give them coercive pressure, while the educational institutions give them normative pressure. However, their role performance to be involved in this sustainability embedding is still low due to obstacles, both barriers related to learning tools and personal perception. Type of Paper - Empirical" |
| Keywords: | Role Expectation; Role Performance; Accounting Educator; Role Theory; Embedding Sustainability |
| JEL: | Q Q5 Q56 |
| Date: | 2022–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jber224&r= |
| By: | Balagobei, S (University of Jaffna, Sri Lanka. Author-2-Name: Keerthana, G Author-2-Workplace-Name: University of Jaffna, Sri Lanka. 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 - COVID – 19 has created unique and very profound challenges for almost all listed firms in Sri Lanka. The purpose of the study is to examine the influence of corporate governance practices on the financial distress status of listed companies in the consumer services sector in Sri Lanka. Methodology/Technique - To assess the level of corporate governance, the current study constructs six dimensions of corporate governance, such as board size, board composition, CEO duality, board meeting, director ownership, and audit committee size. The Altman Z-score is used as a proxy for financial distress and measures it inversely. The bigger the Z-score indicates the smaller the risk of financial distress. Using 108 individual observations of consumer services firms listed on the Colombo Stock Exchange for the period of 2019 to 2021 and employing the fixed effects model, the effect of corporate governance practices on financial distress is evaluated. Findings - The results from panel data regression analysis reveal that firms having a large number of directors on the board have a low likelihood of financial distress of listed consumer services companies in Sri Lanka. Furthermore, when a chief executive officer serves as the chairman of the board at a company, the more likely it is that the company will experience financial distress. The current study also provides evidence that firm-specific characteristics, such as firm size, leverage, and profitability, could be useful in determining the likelihood of financial distress. Novelty - This study extends the existing literature by investigating the association between corporate governance practices and financial distress in listed companies in the emerging markets during the period of the COVID 19 pandemic. Type of Paper - Empirical." |
| Keywords: | Board size, CEO duality, corporate governance, financial distress |
| JEL: | G30 G34 |
| Date: | 2022–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr211&r= |
| By: | IKEUCHI Kenta |
| Abstract: | The purpose of this study is to empirically analyze the effect of changes in the Japanese R&D tax system implemented in 2015 on the quantity and quality of R&D investment. As a result of analysis using counter-factual simulation, it was found that the abolition of the tax credit carryover system and the expansion of tax credits for open innovation (OI) in 2015 contributed to the decrease in total R&D investment and the increase in external expenditure R&D investment, respectively. Regarding the tax revenue, the increase in tax revenue due to the abolition of the tax credit carryover system was almost equal to the decrease in R&D investment, and the decrease in tax revenue due to the expansion of tax credits for OI was smaller than the increase in external R&D investment. In addition, the negative effect of the abolition of the tax credit carryover system and the positive effect of the expansion of tax credits for OI almost offset each other, and it seems that there was no significant effect on the labor productivity as a whole. The expansion of tax credits for OI in 2015 had the effect of increasing the number of industry-academia joint application patents. As a conclusion, the system changes in the R&D tax system in 2015 had the effect of promoting open innovation such as joint research between industry and academia and boosting productivity, but at the same time, R&D investment was reduced by abolishing the tax credit carryover system. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:22027&r= |
| By: | Saila Stausholm; Petr Janský; Marek Šedivý |
| Abstract: | Economic data are important in governing the international political economy. Some of the most widely used macro statistics risk being undermined by systematic misalignment in reporting of economic activity due to illicit financial flows, as well as tax-minimizing financial transactions by multinational corporations. Measuring these misalignments may prove a way to correct old statistical standards, if adequate data can be obtained. |
| Keywords: | Tax avoidance, Illicit financial flows, Extractive industries |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-76&r= |
| By: | D'Acunto, Francesco; Xie, Jin; Yao, Jiaquan |
| Abstract: | Trust between parties should drive contract design: if parties were suspicious about each others' reaction to unplanned events, they might agree to pay higher costs of negotiation ex ante to complete contracts. Using a unique sample of U.S. consulting contracts and a negative shock to trust between shareholders/managers (principals) and consultants (agents) staggered across space and over time, we find that lower trust increases contract completeness. Not only the complexity but also the verifiable states of the world covered by contracts increase after trust drops. The results hold for several novel text-analysis-based measures of contract completeness and do not arise in falsification tests. At the clause level, we find that non-compete agreements, confidentiality, indemnification, and termination rules are the most likely clauses added to contracts after a negative shock to trust and these additions are not driven by new boilerplate contract templates. These clauses are those whose presence should be sensitive to the mutual trust between principals and agents. |
| Keywords: | Empirical Contract Theory,Incomplete Contracts,Cultural Economics,Beliefs and Choice,Personnel Economics,Organizational Economics,FinTech andTextual Analysis,Consulting,Management,Non-Compete Agreements,Big Five,Fraud,Accounting,Disclosure |
| JEL: | D86 D91 J33 L14 Z10 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:lawfin:32&r= |
| By: | Francesco Menoncin; Andrea Modena; Luca Regis |
| Abstract: | We study tax evasion in a tractable macroeconomic model with productive public expenditure financed by a fixed-rate income tax. Taxpayers are heterogeneous in their productivity and subject to borrowing constraints. They can lower their fiscal burden by evading taxes at the risk of being audited (and fined) by the government. We solve the model for its competitive equilibrium and characterize entrepreneurs’ optimal policies contingent on their individual productivity and the endogenous price levels. The model predicts that enforcing tax compliance stimulates the productivity of public expenditure, thus making less productive enterprises viable. At the same time, however, fewer evasion opportunities alleviate borrowing constraints by offsetting the advantage of low-productivity (and highly-evasive) entrepreneurs, thereby re-allocating capital to more productive users. On the demand side, decreasing tax evasion reduces consumption levels by curbing private capital accumulation. However, it fosters consumption rates by mitigating entrepreneurs’ precautionary motif against auditing risk. |
| Keywords: | Dynamic Tax Evasion; Financial Frictions; General Equilibrium; Misallocation |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:cca:wpaper:679&r= |
| By: | Olalere Isaac Opeyemi (Durban University of Tech., Durban, 4000, Durban, KZN, South Africa Author-2-Name: Dewa Mendon Author-2-Workplace-Name: Durban University of Tech., Durban, 4000, Durban, KZN, South Africa Author-3-Name: Dlamini Lenhle Author-3-Workplace-Name: Durban University of Tech., Durban, 4000, Durban, KZN, South Africa 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 paper predicts a measurement indicator for the trade mispricing channel and its effectiveness in identifying IFFs. Methodology - A model gaussian multivariate anomaly detection algorithm, for classifying between legal and illegal transactions that are suspicious in terms of misreporting was developed. The method is a machine learning technique and uses data from South Africa, Botswana, the USA, and China over a period from 2000 to 2019, to learn whether there are any intriguing differences in the model performance based on these countries and the effect of other factors. Imports and Exports are used as features of the model while the net flow derived from these features is used as the third feature of the model. Imports and exports data are sourced from IMF's Direction of Trade Statistics database. Annual tariffs data and corruption data come from the WDI database and Transparency International's Corruption Perception Index, respectively. Data for 'accounting and auditing standards' comes from the world economic forum. Findings - The result showed that while the model may be effective in detecting IFFs due to mispricing, other factors may however contribute to irregularities of trading data that is flagged as IFFs. This in addition to accounting for total quantum, also provides details empowering governments with the information to stimulate and drive the desire to curb IFFs from its different sources and channels. Novelty - This study contributes to the debate on trade mispricing by proving a baseline measurement to help detect and track IFFs. Type of Paper - Empirical" |
| Keywords: | Gaussian Multivariate Anomaly Detection; GMAD; Illicit Financial Flow; IFF., Trade Mispricing |
| JEL: | F17 Q02 |
| Date: | 2022–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jber221&r= |