|
on Accounting and Auditing |
|
Issue of 2023‒09‒11
five papers chosen by |
| By: | Ali, Hassan |
| Abstract: | Navigating Taxation Complexity in the Circular Economy: Lessons from Jordan: Examining the challenges faced by businesses in Jordan when transitioning to circular practices and the role of tax policies in facilitating or hindering this shift |
| Date: | 2023–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:n6vza&r=acc |
| By: | Beaver, William H; Cascino, Stefano; Correia, Maria; McNichols, Maureen F. |
| Abstract: | We examine bankruptcy within business groups. Groups have incentives to support financially distressed subsidiaries, as the bankruptcy of a subsidiary may impose severe costs on the group as a whole. This is in part because, in several countries, bankruptcy courts often “pierce the corporate veil” and hold groups liable for their distressed subsidiaries’ obligations as if they were their own. Using a large cross-country sample of group-affiliated firms, we show that, by reallocating resources within the corporate structure, business groups actively manage intra-group credit risk to prevent costly within-group insolvencies. Moreover, we document that recent regulatory changes in the approval and disclosure of related party transactions are costly for business groups in that they constrain their ability to shield their subsidiaries from credit-risk shocks. Our study informs the current regulatory debate on related party transactions by highlighting an important cost of anti-self-dealing regulation. |
| Keywords: | bankruptcy; credit risk; business groups; subsidiaries; veil piercing; related party transactions; regulation; Springer deal |
| JEL: | G14 G15 G38 M41 |
| Date: | 2023–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118590&r=acc |
| By: | Abroskin, Alexander (Аброскин, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Abroskina, Natalia (Аброскина, Наталья) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | TThe relevance of the research is related to the need of improving the methodology for measuring the population poverty level in the Russian Federation. The purpose of the research is to develop methodological approaches to inclusion of non-monetary components in the system of factors taken into account in the process of estimates construction of population poverty level and its dynamics in the Russian Federation. The tasks to be solved within the framework of the ongoing research include: analysis of existing methodological approaches to measuring the poverty level; identification of problematic aspects of the monetary indicators use in measuring the poverty level; analysis and systematization of promising international measurement experience taking into account non-monetary components; development of proposals for improving the methodology for constructing estimates of the poverty level in Russian statistics. The research was conducted as part of the research work of the 2021 RANEPA state task. During the research, methods of analysis and systematization of existing promising developments in the field of integrated measurements of the level and dynamics of the population poverty level were used. The information basis of the research was promising developments in the methodology of accounting for non-monetary factors in measuring poverty, presented in documents of international organizations - UN, IMF, World Bank, OECD and EU, as well as relevant developments implemented in the statistics of individual countries. The specific results of the research include: developed methodological basis for constructing multidimensional estimates of the population poverty level, recommended approaches to taking into account non-monetary components in measuring the poverty level and its dynamics, proposals for taking into account deprivation characteristics in constructing multidimensional estimates of the population poverty level. The main conclusions of the research: the most promising approaches to accounting for non-monetary factors include the development of material deprivation indicators, which can be supplemented with information on indicators of social isolation. The prospects of the research and the directions of further work are related to the development of methodological basis for constructing estimates of the poverty level based on a combination of its monetary and material characteristics. |
| Keywords: | deprivation indicators, estimation methods, households, methodology, multidimensional indicators, non-monetary features, poverty level, social statistics |
| Date: | 2021–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220155&r=acc |
| By: | Michael Smolyansky |
| Abstract: | I show that the decline in interest rates and corporate tax rates over the past three decades accounts for the majority of the period’s exceptional stock market performance. Lower interest expenses and corporate tax rates mechanically explain over 40 percent of the real growth in corporate profits from 1989 to 2019. In addition, the decline in risk-free rates alone accounts for all of the expansion in price-to-earnings multiples. I argue, however, that the boost to profits and valuations from ever-declining interest and corporate tax rates is unlikely to continue, indicating significantly lower profit growth and stock returns in the future. |
| Keywords: | long-run prediction; stock returns; equity premium; corporate profits; interest rates; corporate taxes |
| JEL: | G10 G12 G17 |
| Date: | 2023–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:96625&r=acc |
| By: | Sarah Perret; Diana Hourani; Bethany Millar-Powell; Antonia Ramm |
| Abstract: | This working paper presents novel analysis comparing in a consistent way the tax treatment of labour and capital income across OECD countries, through stylised effective tax rates (ETRs). It shows that dividend income and capital gains are generally subject to lower ETRs than wage income at the personal level. In many countries, capital income is also tax-favoured even when considering taxes paid by both firms and individuals, although the gap between labour and capital income taxation tends to be smaller than when considering only personal-level taxes. The gap between ETRs on labour and capital income varies between countries and grows with income levels in some. The paper highlights that differential tax treatment of labour and capital income can affect the efficiency and equity of tax systems. |
| Keywords: | capital, high earners, inequality, labour, progressivity |
| JEL: | H2 |
| Date: | 2023–08–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ctpaaa:65-en&r=acc |