|
on Accounting and Auditing |
|
Issue of 2020‒10‒05
five papers chosen by |
| By: | Christos Tsatsis |
| Keywords: | accounting crises; historical accounting; accounting innovations; accounting changes |
| JEL: | M41 |
| Date: | 2020–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/312614&r=all |
| By: | Budnik, Katarzyna; Balatti, Mirco; Dimitrov, Ivan; Groß, Johannes; Kleemann, Michael; Reichenbachas, Tomas; Sanna, Francesco; Sarychev, Andrei; Siņenko, Nadežda; Volk, Matjaz |
| Abstract: | The Banking Euro Area Stress Test (BEAST) is a large scale semi-structural model developed to assess the resilience of the euro area banking system from a macroprudential perspective. The model combines the dynamics of a high number of euro area banks with that of the euro area economies. It reflects banks’ heterogeneity by replicating the structure of their balance sheets and profit and loss accounts. In the model, banks adjust their assets, interest rates, and profit distribution in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting credit supply conditions. When applied to a stress test of the euro area banking system, the model reveals higher system-wide capital depletion than the analogous constant balance sheet exercise. JEL Classification: E37, E58, G21, G28 |
| Keywords: | banking sector deleveraging, macroprudential policy, macro stress test, real economy-financial sector feedback loop |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20202469&r=all |
| By: | Hakelberg, Lukas; Rixen, Thomas (Freie Universität Berlin) |
| Abstract: | The downward trend in capital taxes since the 1980s has recently reversed for personal capital income. At the same time, it continued for corporate profits. Why have these tax rates di-verged after a long period of parallel decline? We argue that the answer lies in different levels of change in the fights against tax evasion and tax avoidance. The fight against evasion by households progressed significantly since 2009, culminating in the multilateral adoption of automatic exchange of information (AEI). In contrast, international efforts against base ero-sion and profit shifting (BEPS) failed to curb tax avoidance by corporations. We theorize that international cooperation is an intervening variable, countering the negative impact of tax competition on capital taxation by reducing the risk of capital flight. Under such conditions, domestic political pressures in favor of higher capital taxes can unfold. We confirm our argu-ment in a difference-in-difference analysis and through additional tests with data for up to 35 OECD countries from 2000-2017. Our central estimate suggests that the average tax rate on dividends in 2017 is 4.5 percentage points higher than it would have been absent international tax cooperation. |
| Date: | 2020–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:tvneu&r=all |
| By: | Colin Weiss |
| Abstract: | Financial intermediary balance sheets matter for asset returns even when these intermediaries do not directly participate in the relevant asset markets. During the National Banking Era, liquidity conditions for the New York Clearinghouse (NYCH) banks forecast excess returns for stocks, bonds, and currencies. The NYCH banks had little to no direct participation in these markets; their main link to these markets was through securities financing. Liquidity conditions affect asset prices through the credit growth of the NYCH banks, which shapes marginal investors' discount rates. I use institutional features of this era to provide evidence in favor of this mechanism. |
| Keywords: | Liquidity management; Margin loans; Intermediary asset pricing; National banks |
| JEL: | G12 G21 E51 N21 |
| Date: | 2020–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1302&r=all |
| By: | Ufuk Akcigit (University of Chicago, CEPR and NBER); Stefanie Stantcheva (Harvard University, CEPR and NBER) |
| Abstract: | Tax policies are a wide array of tools, commonly used by governments to influence the economy. In this paper, we review the many margins through which tax policies can affect innovation, the main driver of economic growth in the long-run. These margins include the impact of tax policy on i) the quantity and quality of innovation; ii) the geographic mobility of innovation and inventors across U.S. states and countries; iii) the declining business dynamism in the U.S., firm entry, and productivity; iv) the quality composition of firms, inventors, and teams; and v) the direction of research effort, e.g., toward applied versus basic research, or toward dirty versus clean technologies. We give ideas drawn from research on how the design of policy can allow policy makers to foster the most productive firms without wasting public funds on less productive ones. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2020-70&r=all |