nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒12‒19
ten papers chosen by
Alexander Harin
Modern University for the Humanities

  1. The Effectiveness of Setting Governmental Accounting Standards: The Case of Michigan Governments in Fiscal Distress By Convery, Sue
  2. Applying Benford’s Law to detect accounting data manipulation in the pre-and post-financial engineering periods: Evidence from Lebanon By Etienne Harb; Nohade Nasrallah; Rim El Khoury; Khaled Hussainey
  3. Analysis of the stimulating effects of the distribution of targeted interbudgetary transfers in the Russian Federation By Alexeey Michael; Arlashkin Igor; Barbashova Natalia; Deryugin Alexander; Komarnitskaya Anna; Sokolov Ilya
  4. Applying XBRL to US State and Local Government Audited Financial Reports By Joffe, Marc; Reck, Jacqueline
  5. A study of the economic features of taxation of corporate profits in the Russian Federation in the 2010s. By Alexeey Michael; Belev Sergey; Vekerle Konstantin; Zolotareva Anna; Leonov Elisey; Sokolov Ilya; Matveev Evgeniy
  6. CFO Working Experience and Tax Avoidance By Panagiotis Karavitis; Pantelis Kazakis; Tianyue Xu
  7. Development of approaches to improving the mechanism of taxation of personal income in the Russian Federation in the context of digitalization of tax administration By Milogolov Nikolai; Gromov Vladimir; Patel' Svetlana; Kostryikina Natalia; Koryitin Andrey; Melkova Elena
  8. Jurisdictional remedies for corporate rights in Ukraine: Sub-standard remedies in corporate disputes By Anatoliy V Kostruba
  9. Consumption Loan Augmented Divisia Monetary Index and China Monetary Aggregation By William Barnett; Kun He; Jingtong He
  10. Using multimodal learning and deep generative models for corporate bankruptcy prediction By Rogelio A. Mancisidor

  1. By: Convery, Sue (Mercury Publication)
    Abstract: The purpose of setting accounting standards is to improve the quality of the financial statements on which users base their decisions. The financial reporting model set up by the Governmental Accounting Standards Board (GASB) is comprehensive and complex,
    URL: http://d.repec.org/n?u=RePEc:ajw:wpaper:06857&r=acc
  2. By: Etienne Harb (Essca School of Management, Angers); Nohade Nasrallah (LaRGE Research Center, Université de Strasbourg); Rim El Khoury (Lebanese American University, Lebanon); Khaled Hussainey (University of Portsmouth, United Kingdom)
    Abstract: Purpose: Lebanon has faced one of the most severe financial and economic crises since the end of 2019. The practices of the Lebanese banks are blamed for dangerously exposing economic agents and precipitating the current financial collapse. This paper examines the patterns of manipulation of the 10 biggest banks before and after implementing the financial engineering mechanism. Design/methodology/approach: We apply Benford Law (BL) for the first and second positions of the reports of condition and income and four out of the six aspects of the CAMELS rating system (Capital Adequacy, Assets Quality, Management expertise, Earnings Strength, Liquidity, and Sensitivity to the market) by excluding Management and Sensitivity. The deviations from BL frequencies are tested using Z-statistic and Chi-square tests. Findings: Banks seem to have manipulated their Capital Adequacy, Liquidity, and Assets Quality in the pre- and considerably in the post-financial engineering periods. Fraudulent manipulations in the banking sector can distort depositors, shareholders, and regulating authorities. Originality: The study is the first to examine the patterns of fraudulent manipulation in the Lebanese banking industry using BL. Research implications: This study has many implications for governmental authorities, commercial banks, depositors, businesses, accounting and auditing firms, and policymakers. The Lebanese government needs to implement corrective fiscal and monetary policies and apply amendments to the bank secrecy and capital control law. The central bank should revamp its organizational structure, improve its disclosure practices and significantly reduce its ties to the government and the political elite.
    Keywords: Benford law; Frauds; Financial engineering; Reports of condition and income; CAMELS; Lebanon.
    JEL: G01 G21 M42
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:lar:wpaper:2022-10&r=acc
  3. By: Alexeey Michael (Russian Presidential Academy of National Economy and Public Administration); Arlashkin Igor (Russian Presidential Academy of National Economy and Public Administration); Barbashova Natalia (Russian Presidential Academy of National Economy and Public Administration); Deryugin Alexander (Russian Presidential Academy of National Economy and Public Administration); Komarnitskaya Anna (Russian Presidential Academy of National Economy and Public Administration); Sokolov Ilya (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper presents the results of an inventory of the regulations for the distribution of matching grants to the regions of Russia, as well as the evaluation of the direct stimulating effect of a specific grant using econometric analysis of panel data. The study allows to formulate specific recommendations for eliminating the identified negative incentives of matching grants and improving the existing methods of grants’ distribution to subnational governments.
    Keywords: SUPREME AUDIT INSTITUTIONS; AUDIT; AUDIT SELECTION; JUDGEMENT; RISK ANALYSIS; EMPIRICAL EVIDENCE
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:s21118&r=acc
  4. By: Joffe, Marc; Reck, Jacqueline (Mercury Publication)
    Abstract: Ten years after the Securities and Exchange Commission mandated the conversion of corporate financial statements to machine readable formats, there has been no analogous mandate for state and local government Comprehensive Annual Financial Reports (CAFRs)
    URL: http://d.repec.org/n?u=RePEc:ajw:wpaper:09554&r=acc
  5. By: Alexeey Michael (Russian Presidential Academy of National Economy and Public Administration); Belev Sergey (Russian Presidential Academy of National Economy and Public Administration); Vekerle Konstantin (Russian Presidential Academy of National Economy and Public Administration); Zolotareva Anna (Russian Presidential Academy of National Economy and Public Administration); Leonov Elisey (Russian Presidential Academy of National Economy and Public Administration); Sokolov Ilya (Russian Presidential Academy of National Economy and Public Administration); Matveev Evgeniy (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: This article presents the main results of research on the topic of The research of the economic features of the corporate profit tax in the Russian Federation in the 2010s. The paper provides an overview of the international practice of the evolution of corporate profit taxation. Corporate profit tax is not optimal, since it distorts the decisions made by the company: about the source of funding (if interests on loans can be deducted from corporate profit tax base), about dividend payments (if the classical system with double taxation of distributed profits is applied), investment decisions, etc. In the framework of this work, the economic effects of distortions caused by the corporate profit tax in the Russian Federation and methods of their minimization will be analyzed, and the estimation of the scale of this distortions will be provided.
    Keywords: налог на прибыль, эвлюция налогообложения, временной анализ
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:s21119&r=acc
  6. By: Panagiotis Karavitis; Pantelis Kazakis; Tianyue Xu
    Abstract: We ask whether CFO's managerial skills affect corporate tax avoidance using a sample of Chinese-listed companies. To that end, we develop a CFO managerial skills index based on four dimensions of the CFO's work experience: (1) the number of current positions a CFO holds, (2) the number of functional departments a CFO has worked in during his career, (3) the number of firms he has worked for, and (4) whether the CFO has political connections. We find that CFOs with high managerial skills are more likely to engage in aggressive tax avoidance. This effect is weakened when CFOs are in their first year of employment, approaching retirement, and are too busy. Moreover, we find that CFOs with general management skills are more likely to adjust corporate tax avoidance to levels similar to their peers.
    Keywords: Chief Financial Officer (CFO); work experience; managerial skills; tax avoidance
    JEL: G30 H26 J24 M41
    Date: 2022–11
    URL: http://d.repec.org/n?u=RePEc:gla:glaewp:2022_13&r=acc
  7. By: Milogolov Nikolai (Russian Presidential Academy of National Economy and Public Administration); Gromov Vladimir (Russian Presidential Academy of National Economy and Public Administration); Patel' Svetlana (Russian Presidential Academy of National Economy and Public Administration); Kostryikina Natalia (Russian Presidential Academy of National Economy and Public Administration); Koryitin Andrey (Russian Presidential Academy of National Economy and Public Administration); Melkova Elena (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The work is devoted to the prospects of transformation of bilateral tax treaties in digital conditions. To address this question, the authors studied the prerequisites for the transformation of tax systems in an environment of increasing use of digital technologies, and identified key tax challenges.
    Keywords: transformation of tax treaties, bilateral tax treaties
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:s21112&r=acc
  8. By: Anatoliy V Kostruba (Vasyl Stefanyk Precarpathian National University)
    Abstract: In the context of the European integration processes taking place in Ukraine, there is a convergence of the national legal system with the legal principles and provisions of the European Union, including in the field of corporate legal relations. The main purpose of this study was an independent study of problematic issues that arise upon the implementation of sub-standard remedies in corporate disputes to develop author's conclusions and recommendations to ensure sustainable and effective law enforcement practices. The methodological framework of this study included the principles of cognition of social phenomena in their historical development, interrelation, and interdependence, a dialectical approach to the study of theory and practice, the history and current state of law. The leading methods were historical, comparative legal, and dialectical. Based on the results of the investigation, the study covered the leading issues of the state of modern legal regulation of sub-standard remedies in corporate disputes in Ukraine; analysed the main issues of theoretical certainty regarding sub-standard remedies in corporate disputes and suggested new vectors of reforms concerning further improvement of law enforcement practice. The author's conclusion on the need to ensure the unity of law enforcement practice by introducing changes to the legislation of Ukraine towards detailed regulation of sub-standard remedies in corporate disputes, which also correlates with the reformation vectors of development of Ukraine in the context of European integration, will become a stable basis for further scientific research and legislative transformations in the field under study.
    Keywords: Remedies for corporate rights,derivative claim,derivative action,weak party,corporate legal relations Summary: 1 Introduction -2 Literature Review -3 Materials and Methods -4 Results -5 Discussion -6 Conclusions -References,Kostruba,Civil law doctrine,Company law,Company law harmonization,corporations
    Date: 2022–11–04
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03839400&r=acc
  9. By: William Barnett (Department of Economics, University of Kansas and Center for Financial Stability, New York City); Kun He (Department of Economics, University of Kansas); Jingtong He (School of Economics, Nankai University, Tianjin, China)
    Abstract: Simple sum monetary aggregates are based on accounting conventions and have no aggregation theoretic foundations in economic theory. In contrast, Divisia monetary aggregates are directly derived from aggregation and index number theory. Credit card services cannot be included in simple sum monetary aggregates, since accounting conventions cannot aggregate over assets and liabilities. But microeconomic aggregation theory aggregates over service flows not stocks, regardless of whether from assets or liabilities. As a result, it has recently been shown that Divisia monetary aggregates can be augmented to include credit card services and are available from the Center for Financial Stability in New York City. Other sources of consumer credit cannot be included in Divisia monetary aggregates for the United States, since other sources of consumer credit in the United States are linked to specific groups of consumer goods and hence violate the weak separability condition for existence of an aggregator function. However, China produces a unique opportunity to broaden the Divisia monetary aggregates, since sources of consumer credit, not limited to credit cards, are applicable to all consumption purchase and hence do not violate the existence condition for an aggregator function. We report initial results with a broader Chinese Divisia monetary aggregate including not only credit card services but also other broadly acceptable consumer loan services.
    Keywords: Divisia Monetary Aggregates, Consumption Loans, Chinese Monetary Aggregates.
    JEL: C32 C53 E31 E47 E51
    Date: 2022–11
    URL: http://d.repec.org/n?u=RePEc:kan:wpaper:202219&r=acc
  10. By: Rogelio A. Mancisidor
    Abstract: This research introduces for the first time the concept of multimodal learning in bankruptcy prediction models. We use the Conditional Multimodal Discriminative (CMMD) model to learn multimodal representations that embed information from accounting, market, and textual modalities. The CMMD model needs a sample with all data modalities for model training. At test time, the CMMD model only needs access to accounting and market modalities to generate multimodal representations, which are further used to make bankruptcy predictions. This fact makes the use of bankruptcy prediction models using textual data realistic and possible, since accounting and market data are available for all companies unlike textual data. The empirical results in this research show that the classification performance of our proposed methodology is superior compared to that of a large number of traditional classifier models. We also show that our proposed methodology solves the limitation of previous bankruptcy models using textual data, as they can only make predictions for a small proportion of companies. Finally, based on multimodal representations, we introduce an index that is able to capture the uncertainty of the financial situation of companies during periods of financial distress.
    Date: 2022–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2211.08405&r=acc

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