nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2024‒05‒06
five papers chosen by

  1. Examining the Causal Relationships of Balanced Scorecard Perspectives on Organizational Performance Improvement: A Case Study from the Indonesian Public Sector By Alpha Nur Setyawan Pudjono
  2. Leveling the playing field? A qualitative and quantitative examination of the EU directive on public country-by-country reporting By Gundert, Hannah; Spengel, Christoph; Weck, Stefan
  3. The Effect of Foreign Dividend Exemption on Profit Repatriation through Dividends, Royalties, and Interest: Evidence from Japan By Makoto HASEGAWA; Michi KAKEBAYASHI
  4. The EU's new era of "Fair Company Taxation": The impact of DEBRA and Pillar Two on the EU Member States' effective tax rates By Gschossmann, Emilia; Heckemeyer, Jost H.; Müller, Jessica; Spengel, Christoph; Spix, Julia; Wickel, Sophia
  5. 39th EGOS Colloquium - Organizing for the good life between legacy and imagination By Amélie Blot Lefevre Matte

  1. By: Alpha Nur Setyawan Pudjono (School of Business and Management Institut Teknologi Bandung, Indonesia. Author-2-Name: Dermawan Wibisono Author-2-Workplace-Name: "School of Business and Management Institut Teknologi Bandung, Jalan Ganesha 10, 40132, Bandung, Indonesia. " Author-3-Name: Ima Fatima Author-3-Workplace-Name: Department of Civil Engineering, Faculty of Civil and Environmental Engineering, Institut Teknologi Bandung, Jalan Ganesha 10, 40132, Bandung, Indonesia. Author-4-Name: Ilma Nurul Rachmania Author-4-Workplace-Name: School of Business and Management Institut Teknologi Bandung, Jalan Ganesha 10, 40132, Bandung, Indonesia. 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 research aimed to explore the causal relationships among performance indicators in the Balanced Scorecard framework of the Indonesia Public Sector. Methodology/Technique - Quantitative and path analysis were used to collect and analyze primary data. The research included 24 Regional Public Sector Offices and 268 Local Public Sector Offices as part of the sample. Findings - The findings showed substantial causal relationships within the Public Sector Balanced Scorecard perspectives, with training significantly influencing employee performance in taxation dissemination and tax supervision activities. However, the impact of training on tax audit performance was considered insignificant. The empirical evidence suggested that tax audit was the only performance indicator positively associated with tax compliance. Determinant factors for tax revenue included tax compliance, dissemination, audit, and supervision. Novelty - This research contributes crucial insights by showing intricate causal relationships among performance indicators, indicating the significant impact of training on distinct facets of employee performance. Additionally, the study identifies tax audits as an essential factor positively influencing tax compliance. The analysis provides new perspectives on the applicability of the Balanced Scorecard in the public sector context, particularly in developing countries. Type of Paper - Empirical"
    Keywords: Balanced Scorecard; Path Analysis; Public Sector; Taxation; Performance Indicators.
    JEL: M40 C52 H30 H20 M49
    Date: 2024–03–31
  2. By: Gundert, Hannah; Spengel, Christoph; Weck, Stefan
    Abstract: The recent enactment of Directive 2021/2101 by the EU introduces a public Country-by-Country Reporting (CbCR) regime, with the aim of promoting a level playing field for businesses operating within the EU Single Market. The directive seeks to bolster tax transparency requirements for multinational enterprises (MNEs), with the objective of reducing disparities in international tax planning potential when compared to smaller, domestic firms. However, the efficacy of public CbCR in achieving this objective hinges on equitable treatment of MNEs, irrespective of their geographical location. In this study, we examine whether the public CbCR Directive introduces unintended disparities between (1) MNEs domiciled in different EU member states and (2) MNEs domiciled within and outside of the EU. Employing an expert survey, we assess the national implementation of the directive across member states, revealing significant variations, particularly concerning the deferment of sensitive information disclosure and permitted data sources. Subsequently, conducting a descriptive analysis of firm-level financial and ownership data, we analyze the differential impact on MNEs domiciled within versus outside the EU. Our findings indicate that the directive predominantly affects MNEs headquartered in the EU, with these entities disclosing, on average, a significantly higher proportion of their global operations on a disaggregated, country-by-country basis. We conclude that the current form and implementation of the directive likely introduces unintended disparities, contrary to the intended goal of establishing a level playing field, and suggest stronger guidance and fewer transposition options.
    Keywords: tax transparency, tax disclosure, country-by-country reporting, European Union
    JEL: F23 G38 H26 M41
    Date: 2024
    Abstract: Multinational corporations repatriate foreign profits through dividends, royalties, and interest paid by foreign affiliates to their parent firms. International tax rules concerning how to tax repatriated foreign earnings influence decisions on profit repatriation. In 2009, Japan introduced a foreign dividend exemption system (so-called territorial tax system) that exempted dividends received by Japanese firms from their foreign affiliates from home-country taxation. This paper examines the effects of this tax reform on profit repatriation through dividends, royalties, and interest. The enactment of the foreign dividend exemption system decreased the effective tax rate on foreign income repatriated through dividends on average by 6.8 percentage points in 2009. We find that in response to this tax rate reduction, Japanese-owned foreign affiliates increased dividend payments, but did not change either royalty or interest payments. As a result, these affiliates increased the total payments to their Japanese parents.
    Keywords: International taxation; Multinational corporations; Profit repatriation; Foreign dividend exemption; Worldwide tax system; Territorial tax system
    JEL: H25 H26 F23
    Date: 2023–05
  4. By: Gschossmann, Emilia; Heckemeyer, Jost H.; Müller, Jessica; Spengel, Christoph; Spix, Julia; Wickel, Sophia
    Abstract: The European Commission recently implemented the minimum tax directive (Pillar Two) to ensure that corporate profits are at least taxed at 15%. At the same time, it proposed a legislative initiative aimed at reducing the tax-induced distortions between debt and equity financing (debt-equity bias reduction allowance directive, DEBRA). In our simulation analysis, we evaluate how the two measures and their interplay influence the EU Member States' effective tax levels and thus their location attractiveness. We find that DEBRA, on average, leads to a substantial reduction of the effective tax levels for equity-financed companies. In countries with a combined profit tax rate below 15%, Pillar Two increases the effective average tax burden. The simulation of the interaction of both regulations shows that the effect of Pillar Two dominates that of DEBRA. In addition, the results hold under a common tax base in accordance with the recently proposed "Business in Europe: Framework for Income Taxation" directive (BEFIT).
    Keywords: Business in Europe, Framework for Income Taxation, BEFIT, Effective tax rates, Debt-Equity Bias Reduction Allowance, DEBRA, Debt-equity bias, Devereux/Griffith Methodology, Global minimum tax, Pillar Two
    JEL: F23 H25 K34
    Date: 2024
  5. By: Amélie Blot Lefevre Matte (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: American pragmatism is at the heart of my research. The discovery I made of Mary Parker Follett several years ago quickly convinced me to join the pragmatist research philosophy, because pragmatism provides an ethical basis to guide the ways in which we can develop together (Brinkmann, 2017). Then my meeting with Philippe Lorino confirmed it to me by providing concrete answers to my questions. Being in the second year of a thesis in management, I have already decided to work on a thesis by articles. You will see in this document that the structure of my thesis is already defined and that I have also already collected consistent data and writing a first article about "velocity" in project management. As Simpson & den Hond (2022) argue by saying that pragmatism is very relevant in changing environments, I for my part also found that the pragmatic approach that I developed allowed me to make a very interesting. It allowed me to put the notion of "consideration" at the heart of my study –"consideration" not to be confused with recognition. It was by being immersed in an audit firm that I was able to observe its management system to identify the flaws that push employees to leave and make it difficult to recruit talent. It was by developing a pragmatist approach in my analysis that I realized that the components of the management system in place did not form a balanced whole in terms of "consideration". Today, I need to share my field experience with other pragmatist researchers to explore the potential of pragmatism as a practical philosophy within the components of a management system. I want to refine my understanding of the contingency and fallibility of knowledge and the continuous learning of human action. I am therefore very interested in collectively experimenting with exercises to develop awareness of our senses, movements, interventions, thoughts, ideas, actions... to be consciously part of worlds on-the-move (Simpson & Revsbæk, 2022).
    Keywords: Pragmatism, velocity, performance management, responsible management, management as practice, audit firm
    Date: 2023–07

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