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on Accounting and Auditing |
| By: | Cetin, Furkan |
| Abstract: | I examine how Accounting Standards Codification (ASC) 606 affects R&D alliance formations and innovation in the drug development industry. ASC 606 alters revenue recognition timing and increases disclosure requirements. I document that firms dependent on R&D alliance revenues accelerate revenue recognition and expand revenue-related disclosures following ASC 606 adoption. These concurrent changes reduce information asymmetry, both between firms and between managers and investors, but only when increased disclosure accompanies accelerated recognition. Consistent with these net reductions in information asymmetry, affected firms raise more equity capital and increase R&D investment. Notably, these firms, which historically acted as technology providers (principals), form more R&D alliances as technology acquirers (partners). Consequently, they exhibit higher innovation output, measured by new patents and drug candidates. This study identifies a specific mechanism through which accounting standards can stimulate innovation: reduced information asymmetry that facilitates strategic R&D alliance formation. |
| Keywords: | real effects; innovation; R&D Alliances; ASC 606; revenue recognition |
| JEL: | M40 |
| Date: | 2025–08–25 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129274 |
| By: | OLAOYE Festus Oladipupo (Department of Accounting, Ekiti State University) |
| Abstract: | This study examines the effect of audit independence on the effectiveness of internal control systems (ICS) in Nigeria's public sector, focusing on tertiary institutions. It explores how changes in audit standards and regulatory frameworks influence ICS, particularly in Federal Universities, Southwest Nigeria. The research enhances understanding of governance challenges and accountability within this sector. Prior studies have investigated ICS factors like budget allocation and employee training, but few have focused on audit independence in Nigerian tertiary institutions. This paper addresses this gap. A stratified random sampling method was employed, selecting six federal universities in the southwestern region. Secondary data were collected through an ex post facto research design, using audited financial reports from these universities. Long-run results revealed significant positive relationships between ICS and factors such as budget allocation, employee training, organizational structure, audit independence, and management support. However, technology infrastructure showed no significant impact. In the short run, budget allocation negatively affected ICS, while employee training, audit independence, and technology infrastructure had positive effects. The study offers insights for administrators and policymakers by emphasizing tailored governance strategies to improve accountability in tertiary institutions. It also provides practical recommendations for strengthening governance in Nigeria's public sector. |
| Keywords: | Audit Independence, Internal Control Systems (ICS), Audit Standards, Budget Allocation (BAR), Employee Training (ETR) |
| JEL: | A13 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:15116626 |
| By: | Mr. Ruud de Mooij; Mr. Shafik Hebous; Mr. Michael Keen |
| Abstract: | This paper examines the efficiency of the Value Added Tax (VAT), focusing on its role as a revenue-raising tool and its use to achieve non-revenue objectives. The analysis highlights the VAT's potential ability to generate revenue with minimal distortions, emphasizing its advantages over alternative taxes, such as turnover taxes and tariffs, particularly in minimizing the cascading effects of input taxation. The paper also explores the VAT as a macroeconomic policy tool, especially in counter-cyclical fiscal policy, and its potential to address environmental and health objectives. It concludes that a well-designed and implemented VAT is a highly efficient revenue-raising tool, surpassing other forms of consumption taxation, but cautions against its misuse in industrial policy and other contexts for which it is ill-suited. |
| Keywords: | Value Added Tax; Efficiency; Welfare |
| Date: | 2025–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/165 |
| By: | David Gstrein; Florian Neumeier; Andreas Peichl; Pascal Zamorski |
| Abstract: | This paper presents novel estimates of the incidence of corporate taxes by measuring the effect of local business taxes on the welfare of commercial landowners, residential landowners, firm owners, and workers. We use unique data on real estate prices in Germany covering over 32 million properties offered for sale or rent between 2008 and 2019 in combination with administrative data on wages and firm profits. Empirically, we exploit the German institutional setting with over 17, 000 municipal tax changes using an event study design. The estimates suggest that a one percentage point business tax increase reduces commercial real estate prices by three percent after four years on average, while commercial rents decline by one percent. Wages decline by about one percent, profits by two percent. These results are robust to the inclusion of a large set of controls and to estimators that account for heterogeneous treatment effects. We use the reduced-form estimates to update current incidence measures and find that commercial landowners bear a significant share of the tax burden (≈ 16%) in the medium-run, while workers (≈ 10%) and residential landowners (≈ 10%) are likely to bear a smaller burden. Firm owners bear the largest share of the burden (≈ 64%). |
| Keywords: | corporate taxation, tax incidence, real estate markets |
| JEL: | H22 H25 H71 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12062 |