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on Accounting and Auditing |
| By: | Othman Gaga (Faculty of Economics and Management of Settat Hassan First University of Settat); Karam Said (Faculty of Economics and Management of Settat Hassan First University of Settat); Nasredine Fathelkhir (Faculty of Economics and Management of Settat Hassan First University of Settat) |
| Abstract: | This article investigates the role of financial reporting quality as a mechanism for strengthening corporate governance in emerging markets. While most governance studies emphasize internal structures—particularly the board of directors—this research highlights the external disciplinary function of accounting conservatism as shaped by the firm's institutional environment. Drawing on the methodology developed by Khan & Watts (2009), we construct two firm-year-level scores that capture opposing reporting strategies: timely loss recognition (C_SCORE) and aggressive accounting (G_SCORE). Using a sample of 38 non-financial firms listed on the Casablanca Stock Exchange over the 2011–2021 period, the study explores how structural characteristics— grouped under the Investment Opportunity Set (IOS)—influence firms' accounting behaviors. Empirical estimations are conducted using Fama-MacBeth regressions, Pooled OLS, and FGLS methods to ensure robustness. The findings reveal that two IOS variables—the market-to-book ratio and financial leverage—are significantly associated with conservative reporting practices. Firms with high growth opportunities and elevated debt levels tend to adopt more prudent accounting strategies, characterized by faster loss recognition and limited anticipation of gains. In contrast, firm size does not appear to be a relevant determinant in the Moroccan context. Additionally, the analysis shows a marked improvement in financial reporting quality after 2017, coinciding with regulatory reforms, including the establishment of the Moroccan Capital Market Authority (AMMC) and the adoption of Circular No. 03/19. The study contributes to the literature by emphasizing financial reporting quality as a governance mechanism shaped by institutional forces. It also demonstrates the relevance of the Khan & Watts model in an emerging market context and underlines the active role regulators can play in enhancing accounting discipline. Finally, the paper opens new avenues for cross-country comparisons and extensions into non-financial reporting domains. |
| Keywords: | Corporate governance, Financial reporting quality, Accounting conservatism, Timely loss recognition, Institutional environment |
| Date: | 2025–05–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05083845 |
| By: | Manabu Nose; Mr. Nicola Pierri; Mr. Jiro Honda |
| Abstract: | This paper explores how digitalization in the corporate sector can boost tax revenue collection, . finding that stronger firm digitalization is associated with higher tax revenues across countries and also higher tax paid across firms. The cross-country estimates illustrate that a one-standard-deviation increase in firm digitalization is associated with an increase in tax revenues-to-GDP by up to 3 percentage points, conditional upon the level of digitalization of tax administration (GovTech). A firm-level analsis reveals that firm digitalization significantly improves tax compliance among high-risk taxpayers, such as small and informal enterprises, particularly in the service sector. This indicates that digitalization not only broadens the corporate tax base but also plays a crucial role in improving tax compliance. Moreover, both country and firm-level analyses reveal a significant synergy between firm digitalization and GovTech, undescoring the importance of promoting both to enhance tax collection. These analyses also suggest that, in developing countries, it is essential to create enabling environments for firm digitalization and GovTech and address any constraints to achieve their synergy effects. |
| Keywords: | Tax compliance; Public-Private digitalization; GovTech |
| Date: | 2025–05–09 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/089 |
| By: | Rouvinen, Petri; Kässi, Otto; Pajarinen, Mika |
| Abstract: | Abstract Finland’s future prosperity hinges on intangible assets such as software, data, brands, and organizational capital. While research and development (R&D) is a central intangible asset, other types collectively hold greater significance. The growth trajectory of Finland’s intangible investments stalled with the 2008–2009 financial crisis and resumed only after the COVID-19 pandemic. This “lost decade” partly explains Finland’s sluggish economic and productivity performance. Innovation policy should broaden its focus beyond R&D to encompass other forms of intangible investment, as well as the adoption and diffusion of innovations. Policy should prioritize quality over quantity, encourage bold experimentation, and support scaling. This necessitates a shift towards equity financing and fostering skilled labor mobility. Mergers and acquisitions are vital for leveraging and disseminating intangible capital, but anti-competitive “killer acquisitions” are not in the national interest. |
| Keywords: | Intangible capital, Investments, Productivity, Innovation policy, Economic growth, Spillovers |
| JEL: | D24 E22 G32 O34 |
| Date: | 2025–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:164 |
| By: | Guillermo Peña |
| Abstract: | Purpose: The present paper analyzes the current situation of taxation of financial services, pointing out the main alternative taxation methods. Design/methodology/approach: It is carried out an analysis of them, through the application of all of them to the same numerical example. Originality: Subsequently, a comparison of several methods is carried out based on the results of the numerical example and its essential characteristics. Findings: As a result, a method is found that is both approximately correct and feasible for taxing financial services in VAT, for example, by applying the recently proposed mobile-ratio method. |
| Keywords: | financial VAT, taxation methods, VAT, financial services, exemption |
| JEL: | H21 H25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11909 |