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1 – 10 of 22José M. Durán-Cabré, Alejandro Esteller Moré, Mariona Mas-Montserrat and Luca Salvadori
The purpose of this paper is to study the concept of tax gap, that is the difference between the total amount of taxes collected and the total tax revenues that would be collected…
Abstract
Purpose
The purpose of this paper is to study the concept of tax gap, that is the difference between the total amount of taxes collected and the total tax revenues that would be collected under full tax compliance.
Design/methodology/approach
The authors also present the methodology to estimate the gap for two taxes levied on wealth: the wealth tax and the inheritance and gift tax; both are administered in Spain by the regional tax authorities.
Findings
The authors point out that its estimation offers useful information about the relative size and nature of non-compliance, as well as its evolution over time. Likewise, the tax gap is a valuable instrument not only to define enforcement strategies of the tax administration but also to enhance its accountability. Nonetheless, the methodology used to estimate the tax gap and, consequently, the interpretation of the results is subject to limitations that are discussed in the paper.
Originality/value
Finally, the paper provides the results of the estimations obtained from using microdata: 44.34 per cent gap in the wealth tax and 41.26 per cent in the inheritance and gift tax.
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Shaif Jarallah and Yoshio Kanazaki
This research surveys the recent surge of empirical studies on transfer pricing manipulation by multinational enterprises (MNEs), tax-motivated transfer pricing, particularly from…
Abstract
This research surveys the recent surge of empirical studies on transfer pricing manipulation by multinational enterprises (MNEs), tax-motivated transfer pricing, particularly from the year 1990 to present. The review tackles transfer pricing income shifting behavior of MNEs from three different perspectives: taxation relationship with profitability, intrafirm trade, and foreign direct investment (FDI). There have been significant developments and contributions in this field, despite many limitations, mainly concerning the availability of micro-data in general, (specifically intrafirm trade data which allows capturing much of the heterogeneity which is dangling within inter-sectors), and the tax measurement issue. Yet, this area of study is still developing and promises more achievements.
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The purpose of this study is to provide models to analyze the efficiency of programs and efficiency of fundraising to apply the models to non-profit organizations (NPOs) in Korea…
Abstract
Purpose
The purpose of this study is to provide models to analyze the efficiency of programs and efficiency of fundraising to apply the models to non-profit organizations (NPOs) in Korea and to draw out improvement points of inefficiency using data envelopment analysis (DEA).
Design/methodology/approach
Using DEA, this study analyzed the program efficiency and fundraising efficiency of 22 Korean NPOs in the field of humanitarian assistance.
Findings
Of 22 NPOs, 15 were identified as being efficient in the program efficiency and 7 of 15 NPOs were found efficient in the fundraising efficiency. In all, four organizations were found efficient in both the program and the fundraising efficiency. Using CCR and BCC model, this study proposed the cause of inefficiency and state of returns of scale.
Practical implications
This study presents non-profit efficiency evaluation models regarding program efficiency and fundraising efficiency. This study provides the inefficient DMUs with their reference set of efficient DMUs to improve efficiency and the cause of inefficiency, whether the inefficiency is because of the pure technical inefficiency or the scale inefficiency. This study also indicates the state of variable returns to scale to propose the way of improving inefficiency by controlling the scale of inputs. The methods and the results of this study can serve as a model for researchers and practitioners to follow when evaluating efficiency in the NPOs.
Originality/value
This study has the value of performing the empirical studies of efficiency analysis of Korean NPOs and providing non-profits with the model of efficiency analysis in programs and fundraising activities and basis for establishing strategies to improve both efficiencies.
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Carlos Fernando Ordóñez Vizcaíno, Cecilia Téllez Valle and Pilar Giráldez Puig
The aim of this paper is to analyse the spillover effects of microcredit on the economy of Ecuador, with a particular focus on its potential as a poverty alleviation mechanism.
Abstract
Purpose
The aim of this paper is to analyse the spillover effects of microcredit on the economy of Ecuador, with a particular focus on its potential as a poverty alleviation mechanism.
Design/methodology/approach
To address our research questions, we take into account the distance between cantons (Ecuador’s own administrative distribution) by adopting a spatial autoregressive (SAR) model. To this end, a database will be constructed with macroeconomic information about the country, broken down by canton (administrative division of Ecuador), and in a 2019 cross section, with a total of 1,331 microcredit operations in all 221 of Ecuador’s cantons.
Findings
We find a positive effect of microcredit on these neighbouring regions in terms of wealth generation.
Research limitations/implications
We acknowledge that this study is limited to Ecuadorian cantons. Nonetheless, it is crucial to emphasize that focussing on an under-represented developing country like Ecuador adds significant value to the research.
Practical implications
Facilitating access to microcredit is one of the main solutions to address the goals proposed in the sustainable development goals (SDGs).
Social implications
Microcredit activity contributes to the creation of value and wealth in Ecuador, exerting a spillover effect in neighbouring areas that can generate positive multiplier effects and alleviate poverty. For all of the above reasons, our proposal for the country is to support and promote microcredit as one of the main solutions to address the goals proposed in the SDGs.
Originality/value
The novelty of this study lies in the use of spatial econometrics to observe the indirect effects of microcredit on the regions bordering the canton in which it was issued, thus examining the spatial effects of microcredit on wealth distribution.
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Timóteo Zagonel, Paulo Renato Soares Terra and Diogo Favero Pasuch
This study aims to analyze the influence of taxes and corporate governance on the dividend policy of Brazilian companies.
Abstract
Purpose
This study aims to analyze the influence of taxes and corporate governance on the dividend policy of Brazilian companies.
Design/methodology/approach
The authors identify the changes of the tax legislation in Brazil in the period 1986-2011 and check their effect on corporate dividend policies for preferred and common shares. The authors use panel data Probit and Tobit estimation to verify the probability of companies to pay dividends under different tax regimes. The final sample comprises 672 companies, 1,159 traded stocks and 30,134 observations
Findings
The authors’ results suggest that changes in the tax legislation have a significant influence on dividend payments. Also, firms do not follow target payout ratios, but dividends are moderately dependent on past payments. Dividend payouts are affected by stock voting rights, privatization and dividend deductibility. Changes in regulation that reduce the agency problems among shareholders affect positively payout ratios.
Practical implications
For managers, maximizing shareholders’ value requires taking into account the consequences of the taxation when designing financial policies for the firm. For investors, stock portfolio selection should take into account payout behavior and how changes in dividend taxation affect stocks’ value. For policymakers, the effects of changes in the tax code on corporate behavior are of utmost importance to stimulate private investment and economic growth.
Originality/value
There are several tax law changes in Brazil within the period analyzed, creating a good opportunity to study the effect of taxation on dividend policy and its dynamics over time.
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Ruby Khan and Tahani Ali Hakami
The objective of this study is to examine the nature of cryptocurrencies, risks involved in using it due to its volatile nature, advantages, disadvantages and its functions as…
Abstract
Purpose
The objective of this study is to examine the nature of cryptocurrencies, risks involved in using it due to its volatile nature, advantages, disadvantages and its functions as money.
Design/methodology/approach
This is an inductive approach to a descriptive analysis (Qualitative research). In order to come to an adequate conclusion, we reviewed several studies and articles previously published in this field related to our research questions, and then explored the nature of Cryptocurrencies, their advantages and disadvantages, risks associated with cryptocurrency usage and their user-friendliness in Saudi Arabia.
Findings
The findings of this study reveal that anonymity and concealment are important aspects of cryptocurrencies. This system does not follow a transparent process that can make it parallel to conventional fiat currency.
Research limitations/implications
Although this study focuses on the issue of trust, it fails to recognize more technological factors hampering its transaction mechanism instead of enhancing it, owing to a lack of facts and knowledge.
Practical implications
Like conventional transaction system users must sign their crypto transactions that others must duly verify easily. Once a promise is made, one will not be able to back out of it until it is protected from revocation by the signer.
Originality/value
In comparison with reviewed literature, this study focuses more on the issue of volatility, which accounts for the fact that cryptocurrency has not been accepted as a permanent tool of monetary policy. Additionally, the study finds that the Saudi public is largely pessimistic toward such currencies.
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Otto Randl, Arne Westerkamp and Josef Zechner
The authors analyze the equilibrium effects of non-tradable assets on optimal policy portfolios. They study how the existence of non-tradable assets impacts optimal…
Abstract
Purpose
The authors analyze the equilibrium effects of non-tradable assets on optimal policy portfolios. They study how the existence of non-tradable assets impacts optimal asset allocation decisions of investors who own such assets and of investors who do not have access to non-tradable assets.
Design/methodology/approach
In this theoretical analysis, the authors analyze a model with tradable and non-tradable asset classes whose cash flows are jointly normally distributed. There are two types of investors, with and without access to non-tradable assets. All investors have constant absolute risk aversion preferences. The authors derive closed form solutions for optimal investor demand and equilibrium asset prices. They calibrated the model using US data for listed equity, bonds and private equity. Further, the authors illustrate the sensitivities of quantities and prices with respect to the main parameters.
Findings
The study finds that the existence of non-tradable assets has a large impact on optimal asset allocation. Investors with (without) access to non-tradable assets tilt their portfolios of tradable assets away from (toward) assets to which non-tradable assets exhibit positive betas.
Practical implications
The model provides important insights not only for investors holding non-tradable assets such as private equity but also for investors who do not have access to non-tradable assets. Investors who ignore the effect of non-tradable assets when reverse-engineering risk premia from asset covariances and market capitalizations might severely underestimate the equity risk premium.
Originality/value
The authors provide the first comprehensive analysis of the equilibrium effects of non-tradability of some assets on optimal policy portfolios. Thus, this paper goes beyond analyzing the effects of market imperfections on individual portfolio choices.
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Domenico Campa, Alberto Quagli and Paola Ramassa
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Abstract
Purpose
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Design/methodology/approach
This literature review includes both qualitative and quantitative studies, based on the idea that the findings from different research paradigms can shed light on the complex interactions between different financial reporting controls. The authors use a mixed-methods research synthesis and select 64 accounting journal articles to analyze the main proxies for fraud, the stages of the fraud process under investigation and the roles played by auditors and enforcers.
Findings
The study highlights heterogeneity with respect to the terms and concepts used to capture the fraud phenomenon, a fragmentation in terms of the measures used in quantitative studies and a low level of detail in the fraud analysis. The review also shows a limited number of case studies and a lack of focus on the interaction and interplay between enforcers and auditors.
Research limitations/implications
This study outlines directions for future accounting research on fraud.
Practical implications
The analysis underscores the need for the academic community, policymakers and practitioners to work together to prevent the destructive economic and social consequences of fraud in an increasingly complex and interconnected environment.
Originality/value
This study differs from previous literature reviews that focus on a single monitoring mechanism or deal with fraud in a broadly manner by discussing how the accounting literature addresses the roles and the complex interplay between enforcers and auditors in the context of accounting fraud.
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Sudarshan Maity and Tarak Nath Sahu
Bank mobilizes savings and transforms it into credit for investments in various sectors, which helps the economy running. The purpose of this paper is to examine the efficiency of…
Abstract
Purpose
Bank mobilizes savings and transforms it into credit for investments in various sectors, which helps the economy running. The purpose of this paper is to examine the efficiency of three bank groups in India with data spanning from 2009–2010 to 2018–2019.
Design/methodology/approach
The study uses data envelopment analysis for measuring the efficiency of the selected banks. It measures the efficiency both from the revenue dimension and from the supply-side dimension of financial inclusion.
Findings
The study finds that foreign banks on average are working efficiently far better than the public-sector and private-sector banks. It indicates that foreign banks in India are operating at 92.53% efficiency level, whereas private- and public-sector banks are operating at 90.20 and 86.04% efficiency levels, respectively. Further, the result of the Friedman test reveals that there is no significant difference in efficiency scores amongst these three bank groups. As major challenges, non-performing assets of the banking industry to be reduced by 15% as radial and 53.18% as slack.
Originality/value
One of the notable innovativeness of this study is that, unlike most of the previous studies that are mostly selected few banks and specific group, the present study may place itself as a unique inquiry in the domain of technical efficiency in macro concept by considering three major bank groups operating in India. An important contribution of the study is the classification of reasons behind the inefficiency, i.e. managerial or inappropriate scale size and further projections of input factors for the same level of output.
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