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on Accounting and Auditing |
| By: | Subhayu Bandyopadhyay; Sugata Marjit; Santiago Pinto; Marcel Thum |
| Abstract: | We investigate the trade-off policymakers face between raising tax revenues for public good provision and mitigating the distortionary effects of taxation when individuals can evade taxes and allocate work hours between legal and clandestine (illicit) activities. These distortions lower the constrained optimal tax rate and result in the under-provision of the public good. This under-provision problem is mitigated when surplus from the audit agency is seamlessly transferred to the taxing authorities. Extensions of the basic model incorporate agent heterogeneity and a more general specification of the concealment cost function for infringements. |
| Keywords: | Taxation; evasion; compliance; legal and illicit activities; public goods; externalities |
| JEL: | H40 K10 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedrwp:101772 |
| By: | Jean Hindriks (CORE (LIDAM) and Economics School of Louvain, Université catholique de Louvain, Louvain-la-Neuve, Belgium); Yukihiro Nishimura (Osaka University) |
| Abstract: | New technologies and the globalization of the economy have facilitated tax avoidance through the shifting of profits by multinational enterprises (MNEs) to low-tax jurisdictions. We develop a three-country asymmetric tax competition model where, in addition to the conventional profit shifting to the tax haven, the high- and low-tax member (of an economic union) countries encourage MNEs to shift resources through the shifting of production activities and employment (activity shifting). We examine how the relative proportions of profit vs activity shifting are determined in the noncooperative equilibrium. We also examine the implications of the Global Minimum Tax (GMT). |
| Keywords: | Profit shifting; Tax competition; Tax enforcement; |
| JEL: | C72 F23 F68 H25 H87 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:osk:wpaper:2513 |
| By: | Ghayal, Achintya |
| Abstract: | Environmental, Social, and Governance (ESG) reporting has shifted from voluntary disclosure to a regulatory imperative and cornerstone of corporate transparency. Traditional cost accounting systems, which emphasize direct, indirect, and overhead costs, often ignore externalities like carbon emissions, social equity investments, and governance overhead. This study investigates how embedding ESG-driven cost allocations reshapes financial reporting and managerial decisions in manufacturing firms. Using a simulated dataset spanning three divisions (Energy, Materials, Consumer), we compare outcomes under conventional accounting and an ESG-adjusted framework that includes carbon pricing equivalents, compliance costs, worker and governance programs. Our results show that ESG adjustments increase reported costs by approximately 20-30% and reduce operating margins by 5-7 percentage points, while significantly improving transparency across environmental, social, and governance metrics. Sensitivity analyses (varying carbon pricing) indicate that margin declines are robust to plausible environmental cost changes, though divisions with higher emissions are most affected. This research contributes to sustainability accounting by operationalizing ESG into cost allocation mechanics rather than treating it as supplementary disclosure. It provides a practical model for managers, regulators, and investors seeking to balance profitability with long-term accountability and risk mitigation. |
| Date: | 2025–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:4ge2z_v1 |
| By: | Becker, Johannes |
| JEL: | H25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc25:325467 |
| By: | Guillaume Dumas (UM - Université de Montpellier, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Yann Quéméner |
| Abstract: | Accounting often unfairly conveys, a dull and boring image, to the general public and young students choosing their career path. In this article we question the effect of the teaching methods on the perception by the students of the soft skills expected by employers. For this purpose, we compare the effect of two teaching methods in a quasi-experiment: directed study exercises (application of knowledge through exercises with corrections by the teacher) and management simulation (application of knowledge to make decisions and manage a fictitious company). Results show that a management simulation, more than traditional lectures, allows first-year accounting students to have a better perception of the soft skills expected by practitioners and recruiters. These results highlight the importance of giving a realistic representation (far from clichés) of the profession, in order to make accounting education courses more attractive. |
| Abstract: | La comptabilité véhicule souvent injustement, une image terne et ennuyeuse, auprès du grand public et des jeunes étudiants choisissant leur orientation. Dans cet article, nous questionnons l'effet de pratiques pédagogiques sur la perception par les étudiants, des soft skills attendues par les employeurs. Pour cela nous réalisons une quasi-expérimentation dans laquelle nous comparons les perceptions des étudiants selon que le cours ait été animé sous un format classique (application des connaissances par le biais d'exercices avec corrigé par l'enseignant) ou sous la forme d'une simulation de gestion (application des connaissances en vue de prendre des décisions et piloter une entreprise fictive). Les résultats de la recherche montrent qu'une simulation de gestion, plus que les travaux dirigés classiques, permettent aux primo-apprenants en comptabilité, d'avoir une meilleure perception des soft skills attendues par les praticiens et les recruteurs. Nos résultats rappellent l'importance de donner une représentation réaliste (éloignée des clichés) de la profession, afin de rendre les filières d'enseignement de la comptabilité plus attractives. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05267094 |
| By: | Kagerer, Benedikt; Pancaro, Cosimo; Reghezza, Alessio; De Vito, Antonio |
| Abstract: | This paper investigates how unrealized losses on banks’ amortized cost securities affect monetary policy transmission to bank lending in the euro area. Leveraging the sharp increase in interest rates between 2022 and 2023 and using granular supervisory data on security holdings and loan-level credit register data, we show that a one percentage point increase in the share of unrealized losses on amortized cost securities amplifies the contractionary effect of monetary tightening on lending supply by approximately one percentage point. This effect is more pronounced for weakly capitalized and less liquid banks, and those relying more on uninsured deposits. We further document that banks respond to growing unrealized losses by raising capital and passing through interest rate increases to depositors via higher deposit betas. Importantly, banks that employ interest rate hedging strategies can fully offset the negative impact of unrealized losses on credit supply. The contraction in lending is particularly severe for smaller borrowing firms, highlighting the uneven economic consequences of hidden balance sheet fragilities during a tightening cycle. JEL Classification: E43, E52, G21, G32, M41 |
| Keywords: | amortized cost accounting, bank lending, monetary policy transmission, security holdings, unrealized losses |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253129 |