|
on Accounting and Auditing |
| By: | Tomas Broukal (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia); Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia); Miroslav Palansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia & Tax Justice Network, London, United Kingdom) |
| Abstract: | We develop a methodology to decompose the tax revenue impact of the global minimum tax introduced in 2024 into several components and quantify its potential impact on profit shifting. We apply it to 34 thousand multinational-country observations from tax returns, financial statements and country-by-country reports of all multinationals active in Slovakia. We find that the global minimum tax has the potential to decrease profit shifting by most multinationals, which are on average likely to pay higher effective tax rates in most countries worldwide post-reform. We find that Slovak corporate tax revenues will increase by 4%, with half of the increase due to its minimum top-up taxes. The other half of the increase is corporate income tax on profits that will no longer be shifted out of the country. We expect the global minimum tax to target 49% of previously shifted profits. |
| Keywords: | global minimum tax, profit shifting, multinationals, tax avoidance |
| JEL: | H25 H26 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_39 |
| By: | Daniel Dejuan-Bitria (BANCO DE ESPAÑA); Wayne R. Landsman (BANCO DE ESPAÑA); Sergio Mayordomo (KENAN-FLAGLER BUSINESS SCHOOL, UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL); Irene Roibás (BANCO DE ESPAÑA) |
| Abstract: | This paper analyses the effect of the expected credit loss model under IFRS 9 on relationship lending in Spain. We document that relationship exclusivity between a bank and a firm has a positive effect on the growth of credit. However, this positive effect is significantly reduced after implementation of IFRS 9. We estimate that in 2018 the negative impact of IFRS 9 on relationship lending led to a reduction in credit to Spanish non-financial firms of 2.8% of their total outstanding credit, suggesting a sizeable effect on the availability of credit. For borrowers with Stage 1 loans, we show that the new regulation has a negative impact on relationship lending at firms with a higher probability of default and whose credit quality has deteriorated. Our findings are consistent with a change in the incentives that underpin relationship lending. |
| Keywords: | relationship lending, IFRS 9, credit, probability of default |
| JEL: | D82 G21 G28 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2437 |
| By: | Julien Albertini; Xavier Fairise; Anthony Terriau |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tep:teppwp:wp24-08 |
| By: | Meiqun Yin (China University of Political Science and Law) |
| Abstract: | Improving accounting information quality of companies in supply chain is crucial for capital market. We collect disclosed information in China?s stock market to explore the relationship between supply chain concentration and accounting information transparency and apply text sentiment analysis based on SnowNLP to investigate the effect of the social media?s governance role on the accounting information. The empirical results show that accounting information transparency improves as supply chain concentration increases, customer concentration has a greater effect, and greater media attention results in higher accounting information transparency. Positive and negative reports display different roles in the process. It is found that the media and supply chain's synergistic governance role to enhance accounting information transparency. Moreover, as a supply chain characteristic, bargaining power significantly moderates accounting information transparency. Enterprises with stronger supply chain bargaining power are more inclined to improve accounting information quality, which is more obvious in the enterprise?customer relationship. |
| Keywords: | Accounting information transparency; Supply chain concentration; Media governance; Text sentiment analysis |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516159 |
| By: | Lia Chabot; Paul Cochran; Sebastian Infante; Benjamin Iorio |
| Abstract: | The continued growth of U.S. Treasury issuance has garnered interest in understanding dealers’ ability to intermediate the U.S. Treasury market. These trends have spurred various efforts to measure the degree to which dealer balance sheet constraints—broadly defined as restrictions on the overall size of an intermediary’s balance sheet—can affect the intermediation of the Treasury market. |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2024-09-23 |
| By: | Romain Bouis; Mr. Gaston Gelos; Fumitaka Nakamura; Mr. Paavo A Miettinen; Erlend Nier; Gabriel Soderberg |
| Abstract: | This paper offers a comprehensive analysis of the implications for financial stability of a central bank issuing a digital currency to the public at large. We start with a systematic analysis of balance sheet changes that arise from the new liability for the central bank and the banking system, and examine how they depend on preconditions, central bank choices, and banking system responses. Based on this, we discuss the range of implications for financial stability that may arise in steady state, in the context of adoption, and in crisis times. Threats to financial intermediation in steady state arise mainly in situations where the central bank balance sheet expands, and triggers adjustment mechanisms that lead to more costly or less stable funding of the banking system, while in crisis times run risk may increase. Our analysis of policy choices to control these effects considers macroprudential policy, and an expansion of central bank lending to commercial banks, but finds that a main contribution needs to come from a design of the CBDC that encourages its use as a means of payment rather than a store of value. |
| Keywords: | Central Bank Digital Currency; Financial Stability; Balance Sheets; Disintermediation; Bank Runs |
| Date: | 2024–10–11 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/226 |