nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2023‒05‒15
five papers chosen by

  1. Дисциплинарната отговорност – материалноправни и процесуални аспекти: Кратък теоретико-практически курс за студенти в Икономически университет – Варна By Andreeva, Andriyana; Yolova, Galina; Danev, Vladimir
  2. Reconstructing firm-level input-output networks from partial information By Andrea Bacilieri; Pablo Austudillo-Estevez
  3. Taxation and Supplier Networks: Evidence from India By Lucie Gadenne; Tushar K. Nandi
  4. Intertemporal equilibrium with physical capital and financial asset: role of dividend taxation By Pham, Ngoc-Sang
  5. Artificial Intelligence: Opportunities and Managerial Challenges By Frédéric Marty

  1. By: Andreeva, Andriyana; Yolova, Galina; Danev, Vladimir
    Abstract: This short course is part of the employment law training materials. The subject has a long tradition at the University of Economics - Varna and is taught at the university, following the classical models in presenting the legal matter to the students. It has been included in the curricula of students - economists, lawyers, managers - during different periods of time, and is currently taught in the Bachelor's degree programmes in Accounting and Audit, Accounting and Finance and Judicial Administration, and in the Master's degree programme in Human Resources Management.
    Keywords: disciplinary liability, employment law
    JEL: K31
    Date: 2023
  2. By: Andrea Bacilieri; Pablo Austudillo-Estevez
    Abstract: There is a large consensus on the fundamental role of firm-level supply chain networks in macroeconomics. However, data on supply chains at the fine-grained, firm level are scarce and frequently incomplete. For listed firms, some commercial datasets exist but only contain information about the existence of a trade relationship between two companies, not the value of the monetary transaction. We use a recently developed maximum entropy method to reconstruct the values of the transactions based on information about their existence and aggregate information disclosed by firms in financial statements. We test the method on the administrative dataset of Ecuador and reconstruct a commercial dataset (FactSet). We test the method's performance on the weights, the technical and allocation coefficients (microscale quantities), two measures of firms' systemic importance and GDP volatility. The method reconstructs the distribution of microscale quantities reasonably well but shows diverging results for the measures of firms' systemic importance. Due to the network structure of supply chains and the sampling process of firms and links, quantities relying on the number of customers firms have (out-degrees) are harder to reconstruct. We also reconstruct the input-output table of globally listed firms and merge it with a global input-output table at the sector level (the WIOD). Differences in accounting standards between national accounts and firms' financial statements significantly reduce the quality of the reconstruction.
    Date: 2023–03
  3. By: Lucie Gadenne (QMUL); Tushar K. Nandi (Indian Institute of Science Education and Research (IISER); CREST and CEPR)
    Abstract: Do tax systems distort firm-to-firm trade? This paper considers the effect of tax policy on supply chains in a large developing economy, the state of West Bengal in India. Using administrative panel data on firms, including transaction data for 4.8 million supplier clientpairs, we first document substantial segmentation of supply chains between firms paying Value-Added Taxes (VAT) and non-VAT-paying firms. We then develop a model of firms’ sourcing and tax decisions within supply chains to understand the mechanisms through which tax policy interacts with supply networks. The model predicts partial segmentation in equilibrium because of both supply-chain distortions (taxes affect how much firms trade with each other) and strategic complementarities in firms’ decision to pay VAT. Finally, we test the model’s predictions using variations over time within firm and within supplier-client pairs. We find that the tax system distorts firms’ sourcing decisions, and evidence of strategic complementarities in firms’ tax choices within supplier networks. A hypothetical reform exempting all firm-to-firm transactions from the VAT would lead to growth of small- and medium-sized firms at the cost of a smalldecrease in tax revenues.
    JEL: O23 H25 L14
    Date: 2023–03–01
  4. By: Pham, Ngoc-Sang
    Abstract: The paper introduces dividend taxation and productive government spending in an infinite-horizon general equilibrium model with heterogeneous agents and financial market imperfections. We point out that imposing a dividend tax and using the revenue from this tax to finance productive government spending may prevent economic recession and promote economic growth. We also investigate the issue of optimal dividend taxation and the role of dividend taxation on the asset price bubble.
    Keywords: Intertemporal equilibrium, recession, economic growth, productive government spending, dividend taxation, asset price bubbles
    JEL: D5 D9 E4 E44 O4
    Date: 2023–03–01
  5. By: Frédéric Marty (Université Côte d'Azur, France; GREDEG CNRS)
    Abstract: While the use of artificial intelligence for pricing, search or matching algorithms generates efficiency gains that primarily benefit consumers, firms must be aware that these algorithms can generate situations of non-compliance with competition and consumer protection rules, and that they can expose them to significant reputational risks if their results are perceived as restricting or manipulating consumer choices or even as leading to discriminatory practices. This contribution aims to characterize these risks and insists on the need for companies to implement compliance policies to prevent these damages or to put an end to them quickly and efficiently through algorithmic audits.
    Keywords: algorithms, artificial intelligence, consumer manipulation, anticompetitive practices, compliance programmes, algorithmic audits
    JEL: K21 K13
    Date: 2022–07

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