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on Accounting and Auditing |
| By: | Daniel Suva (Institute of Economic Studies, Faculty of Social Sciences, Charles University) |
| Abstract: | This paper revisits the empirical evidence on multinational profit shifting using a unique confidential administrative dataset from the General Financial Directorate of the Czech Republic, which includes firm-level Country-by-Country Reporting from every international enterprise operating in Czechia. The analysis reveals a shift in the selection of profit-shifting destinations in recent years. Between 2016 and 2023, the share of global profits shifted into European profit centres decreased from 78.7% to 40.9%, while Caribbean destinations rose in importance. Additionally, our results affirm the emerging pattern in contemporary literature, in which micro-level datasets systematically yield more conservative estimates of the magnitude of profit shifting than previous macro-level studies. Lastly, the exceptional level of granularity in our data enables us to confirm the extreme nonlinearity of the semi-elastic relationship between booked corporate profits and effective tax rates, with both logarithmic and cubic specifications emerging as the most suitable functional forms, each performing best under different conditions - cubic model capturing the proportional responses more effectively across the full distribution, while logarithmic specification better accommodates localized curvature and asymmetries at extreme tax rate ranges. |
| Keywords: | profit shifting; multinational enterprises; corporate taxation; administrative data |
| JEL: | F23 H26 H32 |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2026_27 |
| By: | Jamal, Usama |
| Abstract: | Governments worldwide are strengthening corporate tax enforcement to protect revenue, yet the impact of these policies on internal capital allocation within multinational firms remains underexplored. This paper examines the real and fiscal effects of Earnings Stripping Rules (ESR)—a major reform limiting debt-based profit shifting, now adopted by over 90 jurisdictions. Using a large affiliate-level panel and multiple research designs, I document that ESR adoption triggers sharp increases in reported profits and effective tax rates, but simultaneously reduces local investment and employment. Multinational groups offset these declines by reallocating activity to affiliates in non-adopting jurisdictions, effectively preserving an international escape margin. Notably, this reallocation pattern reverses when ESR adoption is coordinated globally: domestic sister affiliates expand, and foreign reallocation ceases. These findings demonstrate that the real effects of enforcement depend critically on policy coordination, determining whether anti-avoidance rules distort the geography of global capital or raise revenue without displacing economic activity abroad. |
| Keywords: | Tax Avoidance, Multinational Investment, Profit Shifting |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpm:docweb:2603 |
| By: | Said Bribich (Université Ibn Zohr = Ibn Zohr University [Agadir]); Mounir Daoua (Université Ibn Zohr = Ibn Zohr University [Agadir]) |
| Abstract: | Despite the growing interest in artificial intelligence in audit functions, few studies have empirically analyzed the differentiated impact of its applications on internal audit performance, particularly in the context of Moroccan organizations. This study aims to fill this gap by examining the influence of AI integration, operational task automation, big data utilization, and audit report automation on internal audit performance. A quantitative approach was adopted through a questionnaire administered to 103 internal auditors and professionals using artificial intelligence tools. The data were analyzed using the PLS-SEM method with SmartPLS. The results show that operational task automation (β = 0.341; p = 0.009) and big data utilization (β = 0.406; p = 0.001) have a positive and significant effect on internal audit performance, thus validating hypotheses H2 and H3. In contrast, overall, AI integration (β = 0.002; p = 0.989) and audit report automation (β = 0.155; p = 0.098) do not show a significant effect, leading to the rejection of hypotheses H1 and H4. These findings indicate that internal audit performance depends more on specific uses of artificial intelligence than on its overall adoption. The study thus provides an empirical contribution to the literature on the digital transformation of internal audit in emerging economies. |
| Abstract: | Malgré l'intérêt croissant accordé à l'intelligence artificielle dans les fonctions d'audit, peu d'études ont analysé de manière empirique l'impact différencié de ses applications sur la performance de l'audit interne, particulièrement dans le contexte des organisations marocaines. Cette étude vise à combler cette lacune en examinant l'influence de l'intégration de l'IA, de l'automatisation des tâches opérationnelles, de l'exploitation des données massives et de l'automatisation des rapports sur la performance de l'audit interne. Une approche quantitative a été adoptée à travers un questionnaire administré auprès de 103 auditeurs internes et professionnels utilisant des outils d'intelligence artificielle. Les données ont été analysées à l'aide de la méthode PLS-SEM sous SmartPLS. Les résultats montrent que l'automatisation des tâches opérationnelles (β = 0, 341 ; p = 0, 009) et l'exploitation des données massives (β = 0, 406 ; p = 0, 001) exercent un effet positif et significatif sur la performance de l'audit interne, validant ainsi les hypothèses H2 et H3. En revanche, l'intégration globale de l'IA (β = 0, 002 ; p = 0, 989) ainsi que l'automatisation des rapports d'audit (β = 0, 155 ; p = 0, 098) ne présentent pas d'effet significatif, conduisant au rejet des hypothèses H1 et H4. Ces résultats montrent que la performance de l'audit interne dépend davantage des usages spécifiques de l'intelligence artificielle que de son adoption globale. L'étude apporte ainsi une contribution empirique à la littérature sur la transformation numérique de l'audit interne dans les économies émergentes. |
| Keywords: | Artificial intelligence, internal audit, Performance, Automation, Big Data, Automatisation, Audit interne, Intelligence artificielle |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05673662 |
| By: | Shehaj, Pranvera |
| Abstract: | This study provides the first firm-level evidence on how the residence country's double tax relief method and tax sparing provisions in asymmetric tax treaties affect foreign investment by OECD multinational enterprises in low-and-middle income countries. Combining unconsolidated subsidiary-level data for 2005-2016 with detailed tax treaty information, the analysis distinguishes between investment entry (extensive margin), investment intensity (intensive margin), and the directness of the investment route. The results show that treaty-induced changes in the residence country's relief method do not affect subsidiary creation once investment routing is taken into account, while tax sparing provisions consistently encourage market entry. At the intensive margin, improvements in the residence country's relief method increase investment intensity only for firms investing through indirect routes, whereas tax sparing provisions have either no effect or are negatively associated with reinvestment. These findings reveal substantial heterogeneity concealed by aggregate FDI data and demonstrate that the investment effects of tax treaty provisions differ across firms depending on whether they enter or expand, as well as on the route through which they invest. |
| Keywords: | Tax treaties, Double relief method, Tax sparing, New foreign subsidiaries, Gross investments, MNEs, Developing countries |
| JEL: | F21 F23 F53 H25 H73 C23 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fubsbe:343047 |
| By: | Said Bribich (Université Ibn Zohr = Ibn Zohr University [Agadir]); Mounir Daoua (Université Ibn Zohr = Ibn Zohr University [Agadir]) |
| Abstract: | This study examines the impact of internal control on fraud detection and prevention within companies operating in the Souss-Massa region. Based on data collected through a questionnaire administered to professionals in auditing, internal control, accounting, and finance, the research investigates the influence of the main dimensions of internal control on combating fraud. The data were analyzed using the PLS-SEM method with SmartPLS software. The results indicate that supervision and monitoring activities, employee competence and awareness, an ethical and integrity-based control environment, the quality of internal control procedures, and the quality of the information system have a positive and significant effect on fraud detection and prevention. The quality of the information system appears to be the most influential factor. The study concludes that internal control is a key mechanism for strengthening fraud prevention and detection within companies in the Souss-Massa region. |
| Abstract: | Cette étude analyse l'impact du contrôle interne sur la détection et la prévention de la fraude au sein des entreprises de la région Souss-Massa. À partir de données collectées par questionnaire auprès de professionnels de l'audit, du contrôle interne, de la comptabilité et de la finance, la recherche examine l'influence des principales dimensions du contrôle interne sur la lutte contre la fraude. Les données ont été analysées à l'aide de la méthode PLS-SEM sous le logiciel SmartPLS. Les résultats montrent que les activités de supervision et de surveillance, la compétence et la sensibilisation du personnel, l'environnement de contrôle fondé sur l'éthique et l'intégrité, la qualité des procédures de contrôle interne ainsi que la qualité du système d'information exercent une influence positive et significative sur la détection et la prévention de la fraude. La qualité du système d'information apparaît comme le facteur le plus influent. L'étude conclut que le contrôle interne constitue un levier essentiel pour renforcer la lutte contre la fraude au sein des entreprises de la région Souss-Massa. |
| Keywords: | Internal Control, Fraud Detection, Fraud Prevention, Governance, Souss-Massa Region., Région Souss-Massa., Gouvernance, Prévention de la fraude, Détection de la fraude, Contrôle interne |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05671937 |
| By: | Wayne B. Gray; Ronald Shadbegian; Ann Wolverton |
| Abstract: | We investigate whether, by providing better and more timely information, the first mandatory online reporting and auditing program for wastewater discharge releases in the U.S. improved facility compliance and environmental performance, while also allowing state regulators to more effectively monitor and enforce regulations. Examining reporting programs with automated feedback features can also offer insights into the potential for artificial intelligence-based tools to improve compliance and environmental performance. Difference-in-difference results suggest that the program resulted in significant increases in the completeness of reporting and reductions in discharges but also greater reported violations. We find that effects are larger for minor dischargers and publicly owned facilities. We also find evidence consistent with the more efficient targeting of inspections by state authorities towards plants with a history of recent noncompliance, which could be a potential mechanism driving these results. |
| JEL: | Q53 Q58 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35525 |