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on Accounting and Auditing |
| By: | Chen, Xuyang (Université catholique de Louvain, LIDAM/CORE, Belgium); Sun, Rui |
| Abstract: | This paper investigates how the OECD’s global minimum tax (GMT) affectsmultinational enterprises (MNEs) behavior and countries’ corporate taxes. We consider both profit shifting and capital investment responses of the MNE in a formal model of tax competition between asymmetric countries. The GMT reduces the true tax rate differential and benefits the large country, while the revenue effect is generally ambiguous for the small country. In the short run where tax rates are fixed, due to tax deduction of the substance-based income exclusion (SBIE), a higher minimum rate exerts investment incentives but also incurs a larger revenue loss for the small country. We show that under high (low) profit shifting costs the former (latter) effect dominates so that the small country’s revenue increases (decreases). In the long run where countries can adjust tax rates, the GMT reshapes the tax game and the competition pattern. In contrast to the existing literature, we reveal that the minimum rate binds the small country only if it is low. With the rise of the GMT rate, countries will undercut the minimum to boost real investments and collect top-up taxes. Our simulations show that introducing a GMT with moderate minimum rate raises both countries’ revenues and the large country’s welfare. However, it may reduce the small country’s welfare if the welfare weight of private income is high. |
| Keywords: | Corporate taxes, Global minimum tax, Profit shifting, SBIE, Tax competition |
| JEL: | F21 F23 H25 H73 H87 |
| Date: | 2025–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025019 |
| By: | Hindriks, Jean; Nishimura, Yukihiro |
| Abstract: | Technological advances and economic globalization have enabled multinational enterprises (MNEs) to avoid taxes by shifting both profits and real investment to low-tax jurisdictions. We develop a tax-competition model in which asymmetric countries compete for profit and investment in the presence of a tax haven. A key feature of the model is that tax haven can only attract profit but not investment. We show that the impact of the Global Minimum Tax (GMT) depends on the form of country asymmetry (unequal tax base or tax capacity), and on the intensity of competition for investment relative to competition for profit. A central result, shared across both types of country asymmetry, is that intensified competition for investment (via market integration or lower country risk), together with stricter profit-shifting regulations, leads the low-tax host country to prefer a higher minimum tax. |
| Keywords: | Profit shifting ; Tax competition ; Tax enforcement |
| JEL: | C72 F23 F68 H25 H87 |
| Date: | 2025–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025023 |
| By: | Flora Bellone (Université Côte d'Azur, CNRS, GREDEG, France; OFCE, Sciences Po, France); Charlie Joyez (Université Côte d'Azur, CNRS, GREDEG, France); Xavier Poulet-Goffard (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | The OECD's Base Erosion and Profit Shifting (BEPS) initiative, adopted in 2015, introduced country-by-country reporting (CbCR) obligations for multinational groups with consolidated turnover above €750 million. This paper examines whether the reform generated unintended behavioral responses among smaller firms below the reporting threshold. Using firm-level data on French multinationals from OFATS, FARE, and DIANE (2007, 2009, 2014–2022), we estimate difference-in-differences models in a linear probability framework with firm and year fixed effects. We focus on restructuring at the extensive margin, distinguishing entry into and exit from tax-haven jurisdictions. Firms below the threshold significantly increase their probability of opening tax-haven affiliates after 2016, the year CbCR started to be enforced in Europe, while larger firms become more likely to exit. The results are robust to alternative tax-haven definitions and to excluding firms near the cutoff. Heterogeneity analyses show that the post-reform entry in tax havens is concentrated among financially structured small MNEs. Overall, the findings suggest that targeted transparency reforms can reallocate tax-haven activity across the firm size distribution rather than uniformly reduce it. |
| Keywords: | tax avoidance; multinational enterprises; BEPS; country-by-country reporting; tax havens; firm heterogeneity |
| JEL: | F23 H26 H32 K34 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-10 |
| By: | Hindriks, Jean (Université catholique de Louvain, LIDAM/CORE, Belgium); Nishimura, Yukihiro |
| Abstract: | We develop a simple conceptual framework of asymmetric countries competing simultaneously for real investment and for profit shifting in the presence of tax haven. Our goal is to identify how this two-dimensional tax competition affects the performance of tax policy, including minimum tax rules. We define a developing country as one with either a narrower tax base or lower tax capacity. The developing country sets a lower tax rate, attracting FDI. We show that policies aimed at promoting FDI competition—such as reducing transaction costs, country risk, or market-entry barriers—do not necessarily benefit the developing country. There exists a critical threshold of real-investment competition beyond which intensified competition harms the developing country (and the developed country as well). We also identify a “tax capacity externality”: fighting profit shifting in the developed (high-tax) country always raises revenue in the developing country. Finally, we determine the level of the minimum tax that the developing country prefers. This preferred minimum tax increases with both the intensity of FDI competition and the developing country tax capacity. |
| Keywords: | Profit shifting ; FDI competition ; Tax competition ; Minimum tax |
| JEL: | C72 F23 F68 H25 H87 |
| Date: | 2025–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025022 |
| By: | Florent Kambasu Kasula (Université catholique du Graben [Butembo, Congo-Kinshasa]); Martin Kambale Vuligho (Université catholique du Graben [Butembo, Congo-Kinshasa]); Jean-Bosco Kakule Matumo (Université catholique du Graben [Butembo, Congo-Kinshasa]) |
| Abstract: | La gestion comptable et financière figure parmi les signes de gouvernance et de transparence dans les organisations à but non lucratif, notamment les paroisses. Partant d'un échantillon de 42 paroisses du Diocèse de Butembo-Beni, cet article analyse les pratiques de gestion comptable et financière en s'intéressant à la planification budgétaire, à la tenue de la comptabilité, au contrôle des opérations et aux mécanismes d'autofinancement. Les résultats obtenus montrent que la gestion pivote autour du curé. Malgré leur usage partiel et irrégulier des outils comptables, plusieurs paroisses sont dans une dynamique croissante de mise en oeuvre des activités économiques d'autofinancement. Ainsi, face aux insuffisances persistantes dans la planification et l'élaboration des budgets, dans la séparation des fonctions et le contrôle interne, l'article conclue sur un besoin de renforcement des capacités en gestion financière et recommande l'institutionnalisation des principes de bonne gouvernance de gestion. |
| Keywords: | Diocèse de Butembo-Beni, Gouvernance Accounting management, financial management, parish, Diocese of Butembo-Beni, governance, Paroisse, Gestion financière, Gestion comptable, Gestion comptable Gestion financière Paroisse Diocèse de Butembo-Beni Gouvernance Accounting management financial management parish Diocese of Butembo-Beni governance |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05463375 |
| By: | Carlos David Ardila-Dueñas; Joel Santiago Castellanos-Caballero; Carlos David Murcia-Bustos |
| Abstract: | Este documento introduce de manera conceptual y aplicada el marco del Sistema de Cuentas Nacionales (SCN) como esquema contable internacional para la medición, el análisis y la comparación de la actividad económica. Se presenta la lógica de integración entre los flujos reales —que recogen los ingresos y gastos generadas en la economía, cuya elaboración está a cargo del Departamento Administrativo Nacional de Estadística (DANE)— y los flujos financieros —que reflejan la manera en que los sectores institucionales obtienen y utilizan los recursos para financiar sus operaciones, elaborados por el Banco de la República—, destacando su utilidad para comprender la relación entre la actividad productiva y su financiamiento dentro de la economía. Adicionalmente, el documento pone especial énfasis en el proceso estadístico seguido en Colombia para la construcción de las Cuentas Financieras, detallando su metodología, fuentes de información y coherencia con las recomendaciones internacionales, en el marco de los desarrollos institucionales derivados del ingreso del país a la OCDE. Este abordaje metodológico constituye un punto de partida para la comprensión y el uso analítico de los principales agregados macroeconómicos derivados del SCN. *****ABSTRACT: This paper provides a conceptual and applied introduction to the System of National Accounts (SNA) framework as the international accounting standard for the measurement, analysis and comparison of economic activity. It sets out the integration logic between real flows—which capture the income and expenditure generated in the economy and are compiled by the National Administrative Department of Statistics (DANE)—and financial flows, which reflect how institutional sectors obtain and use resources to finance their operations and are compiled by Banco de la República (the Central Bank of Colombia), highlighting their usefulness for understanding the relationship between production activity and its financing within the economy. In addition, the paper places particular emphasis on the statistical process followed in Colombia for the compilation of the Financial Accounts, detailing their methodology, data sources and consistency with international recommendations, within the framework of the institutional developments stemming from the country’s accession to the OECD. This methodological approach provides a starting point for the understanding and analytical use of the main macroeconomic aggregates derived from the SNA. |
| Keywords: | sectores institucionales, cuentas nacionales, cuentas financieras, balance ahorro-inversión, cuenta corriente, institutional sectors, national accounts, financial accounts, savings-investment balance, current account |
| JEL: | C82 E01 G00 H62 Y20 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1347 |
| By: | Marina Emiris (National Bank of Belgium, Research Department); Joanna Harris (Chicago Booth School of Business.); François Koulischer (University of Luxembourg.) |
| Abstract: | We study how sustainability disclosure regulation affects mutual fund flows and portfolio choices, accounting for investor heterogeneity. Guided by a model of ESG investing under uncertainty, we exploit the introduction of the European Sustainable Finance Disclosure Regulation (SFDR) as a natural experiment, using granular fund–investor holdings data. We show that funds subject to higher disclosure requirements attract significantly larger inflows, particularly for funds with higher pre-regulation uncertainty. Institutional investors respond more strongly than retail investors, and investor trust in environmental labels amplifies these effects. We also find evidence that disclosure induces fund managers to increase portfolio greenness. |
| Keywords: | Mutual funds; Disclosure Regulation; Trust; ESG ratings. |
| JEL: | G23 G11 G14 Q56 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202603-490 |
| By: | Emmanuelle Flores (CREGO - Centre de Recherche en Gestion des Organisations - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UB - Université de Bourgogne - UBFC - Université Bourgogne Franche-Comté [COMUE] - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE]); Véronique Blum (UGA - Université Grenoble Alpes) |
| Abstract: | Materiality analyses seek to identify the significant information that needs to be further explored in communications with stakeholders (Beske et al., 2020). Information is considered material if its omission or inaccuracy can affect the economic, social and environmental decisions of users (Edgley, 2014), the link is significant with strategy, risk and long-term value creation (Cerbone et Maroun, 2020 ; Font et al., 2016). Materiality analyses has become a requirement with the adoption of the Corporate Sustainability Reporting Directive (CSRD 2022/2464/EU). Hence, there should exist an alignment between the areas that are identified as areas where the reporting entity has impact and the content of the extra-financial disclosures. In what manner are the results of a materiality assessment and the entity's extra-financialdisclosures aligned ? To answer that question, we conduct a multiple case study, where we examine the extrafinancial disclosures and their practices within the framework of materiality analyses in a cooperative banking context, the « Banques Populaires » in France. We conduct a review ofmateriality practices through a panel of cooperative and shareholder banks. Our results highlight a typology of three different behaviors. « Decoupled » communication is observed when the companies declare that they are following the process but the evidence are not disclosed or remain laconic. « Discretionary » communication occurs when the banks have undertaken a materiality assessment process, but do not disclose in detail all the methodological aspects and/or do not implement all the steps of the analysis. Finally, « Proactive... but improvable » communication is observed when the banks present detailed methodologies in their reporting, but they remain an opacity testifying of a lack rigor and/or transparency on one or two aspects at most of the method adopted (selection of issues, panel, representativeness, etc.). We analyze our findings in the light of the conceptual framework of Neo-Institutional Theory. |
| Keywords: | Extra-financial materiality ; Decoupling practices ; Cooperative banks ; matrices ; Neo-institutional theory. |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05531554 |
| By: | Itzhak Ben-David; Alex Chinco |
| Abstract: | There are three classic problems in corporate finance: capital structure, real investment, and payout policy. In three companion papers, we characterize the max EPS solution to each one. The max EPS approach delivers an optimal leverage ratio even in the absence of frictions, an investment rule based on comparing yields rather than using a risk-adjusted discount rate, and a payout policy where accretive buybacks are preferred to neutral dividends. Our max EPS model draws a bright line between growth and value. Growth stocks have earnings yields below the riskfree rate; value stocks have earnings yields above it. This single comparison leads the two kinds of firms to pursue different constellations of EPS-maximizing policies. The model also produces easy-to-follow calculations that closely mirror what practitioners actually do. This review article ties together these results to form a new max EPS paradigm for corporate-finance research. |
| JEL: | G12 G31 G32 G35 M41 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34971 |