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on Accounting and Auditing |
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Issue of 2024‒02‒26
three papers chosen by |
| By: | Ghassen Allani (UPHF - Université Polytechnique Hauts-de-France, LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées); Yves Mard (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]) |
| Abstract: | This paper examines the impact of dividend policy on earnings quality in the French context over the period 1994-2018. Using four measures of earnings quality, we find an inverted U-shaped relationship between dividend level and earnings quality. Dividend level positively influences earnings quality up to a certain payout level. Beyond this threshold, the dividend increase is detrimental to earnings quality. We also observe that the decrease in earnings persistence observed for high values of dividend ratios is explained by earnings management. Moreover, we find that the curvilinear relationship between dividend level and earnings quality is moderated for large firms and firms with volatile dividends. Our results in the French context extend the existing literature and reconcile the mixed results in previous research. |
| Keywords: | Dividend policy, Earnings quality, Curvilinear relationship |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04415679&r=acc |
| By: | Agersnap, Ole (Yeh College, Princeton University); Bjørkheim, Julie Brun (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | Most tax systems around the world are highly complex. While several economists have studied the potential costs associated with tax complexity, few have explored if complexity can also have beneficial effects. In a novel model where taxpayers can acquire costly knowledge to reduce their tax burden, we show that when elasticities of taxable income are heterogeneous, a complex tax system can act as a sorting device similar to second-degree price discrimination, where more elastic taxpayers will invest in more tax knowledge. We prove that if elasticities are increasing with income, introducing tax complexity can allow the government to raise higher tax revenues at no efficiency cost. However, we show that complexity primarily benefits the highest earners and thus exacerbates inequality. In the empirical section of our work, we study a complex tax system in Norway. Using rich register data on business owners, we demonstrate that many taxpayers make accounting decisions that cause them to pay higher taxes than would have been possible, and we quantify the exact size of this tax overpayment at the individual level. We show that overpayment tends to be larger for women, the less wealthy, and immigrants. We validate our model predictions by showing that failure to optimize is associated with a lower estimated tax elasticity. |
| Keywords: | Taxation; Personal Income Taxes; Fiscal Policies and Behavior of Economic Agents: Household; Tax Evasion and Avoidance |
| JEL: | H20 H24 H26 H31 |
| Date: | 2024–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2024_004&r=acc |
| By: | Julie Remache |
| Abstract: | Remarks at Fixed Income Analysts Society, Inc. Women in Fixed Income Conference, Federal Reserve Bank of New York, New York City. |
| Keywords: | Fed balance sheet; Federal Reserve Balance Sheet; central bank balance sheets; monetary policy; System Open Market Account (SOMA); SOMA portfolio |
| Date: | 2024–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsp:97744&r=acc |