nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2025–04–07
five papers chosen by
Alexander Harin


  1. Corporate tax planning and enforcement By Dyck, Daniel
  2. The influence of audit quality indicators on the quality of forecast reporting in group management reports By Kordisch, Julian; Quick, Reiner
  3. Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town By Majid, Hassan
  4. Public Sector Accounting Assessment (PULSE) Tool User Manual By World Bank
  5. The Impact of Economic Crises on Intangible Investments: Why Did Intangible Investment Decline in Finland? By Kässi, Otto

  1. By: Dyck, Daniel
    Abstract: This study investigates how strategic interactions between corporate tax planning and tax enforcement are affected by two policy instruments: strengthening tax enforcement by increasing the number of specialized enforcement staff and improving tax audit technologies. I employ an economic model with a board of director's investment in a Tax Control Framework (TCF) and a tax manager's tax planning effort jointly shaping corporate tax planning and a tax auditor's technology-based audit decision. I show that the board only invests in the TCF when the enforcement environment is sufficiently strict, because it trades-off the costs and benefits of tax planning. Since strengthening tax enforcement decreases tax planning effort, the result can be less investment in a TCF in a strict enforcement environment, implying that TCF investment and enforcement can be strategic substitutes. Strikingly, I identify conditions under which improvements in tax audit technology increase corporate tax planning and impair tax audit efficiency, due to a crowding out of audit incentives. This result contradicts the view that improving audit technologies is universally effective, particularly in tax authorities with adequate staffing.
    Keywords: tax control framework, tax planning, tax risk management, tax audit technology, tax enforcement
    JEL: H26 H32 M42 M48 C70
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:arqudp:314430
  2. By: Kordisch, Julian; Quick, Reiner
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:dar:wpaper:153592
  3. By: Majid, Hassan
    Abstract: Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town
    Date: 2023–08–04
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:2xjkd_v1
  4. By: World Bank
    Keywords: Finance and Financial Sector Development-Public & Municipal Finance Public Sector Development
    Date: 2024–04
    URL: https://d.repec.org/n?u=RePEc:wbk:wboper:41371
  5. By: Kässi, Otto
    Abstract: Abstract This research note examines the impact of economic crises on intangible investments, with a particular focus on why the growth in intangible investments in Finland stallad after the Great Financial Crisis. Intangible capital has proven to be the key driver of growth in advanced economies, but its financing is complicated by the fact that intangible assets cannot be used as loan collateral in the same way as traditional physical capital. Our analysis is based on the EUKLEMS & INTANProd database and financial statement data, which show that the slowdown in investment affected several key industries, not just the electronics sector centered around Nokia. Our findings suggest that, in addition to liquidity constraints, the “option value of waiting” induced by uncertainty played a crucial role in firms’ investment decisions. In other words, many firms postponed their intangible investments while waiting for better economic visibility. However, the investment behavior of both new and established firms followed a similar trajectory, emphasizing the role of uncertainty rather than liquidity constraints. Although intangible investments in Finland remain relatively high in international comparison, the country has fallen behind in intangible capital accumulation, particularly in relation to Sweden and the United States. Public support measures and risk-sharing mechanisms can help accelerate intangible investments but cannot fully eliminate the uncertainty associated with the broader economic environment. Based on available data, the effects of the COVID-19 pandemic and the war in Ukraine on intangible capital have so far not been as severe as those following the financial crisis.
    Keywords: Intangible capital, Intangible investments, Economic crises
    JEL: E22 E32
    Date: 2025–03–10
    URL: https://d.repec.org/n?u=RePEc:rif:briefs:153

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