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1 – 10 of over 3000Gustavo Barboza, Valerien Pede and Sergio Madero
The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control…
Abstract
Purpose
The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control production related negative externalities. In this regard, when information asymmetries are present and consumers become knowledgeable about them, consumers with d-preferences for corporate social responsibility (CSR) type of products becomes the driver of the firm strategy.
Design/methodology/approach
To accomplish the goals of this paper, the authors proceed to develop a series of theoretical models wherein the social gains and costs of alternative modes of intervention are illustrated. The authors begin with a standard Pigouvian tax model and construct a stakeholder equivalent tax model and finalize the analysis with consumers acting in a shared social responsible behavior with firms as the optimal solution model.
Findings
The authors show that proactive disclosure of information asymmetries regarding negative externalities develops a shared social responsibility between consumers and firms. Market-based solutions to the externality problem are achieved under this setting. This solution is preferred to a Pigouvian tax and to a stakeholder equivalent tax. It is concluded that shared social responsibility is the result of the interaction of consumers with d-preferences and the reaction of a socially responsible “firm” willing, and the authors are able to incorporate these preferences as drivers for its strategy.
Research limitations/implications
The main limitation of this paper is in its theoretical nature and specific applications to one case, that of negative externalities in production processes. The implication of this is that the model herein developed needs to be put to the empirical test.
Social implications
The overall social implications indicate that active reduction of information asymmetries is welfare improving and preferred to government intervention.
Originality/value
This paper is original as it makes use of economic principles to develop a parsimonious model to demonstrate that proactive actions of a firm in response to consumers and stakeholders demands leads to an overall social welfare improvement when negative externalities deriving from production are incorporated into the decision making process of both consumers and firms. These decisions prove superior to government regulations.
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Adela Deaconu and Dan Dacian Cuzdriorean
– The purpose of this paper is to investigate stakeholders’ salience on accounting and in particular to assess the magnitude of state influence in Romania, an emerging context.
Abstract
Purpose
The purpose of this paper is to investigate stakeholders’ salience on accounting and in particular to assess the magnitude of state influence in Romania, an emerging context.
Design/methodology/approach
This research integrates stakeholders’ theory and an empirical approach based on a survey administrated to professional accountants as preparers of accounts on the financial reporting market.
Findings
The findings confirm the hypothesis of Mitchell et al. (1997) that the importance of stakeholders is high if attributes like power, legitimacy and claims urgency are perceived as current. In the Romanian emergent context, for the period 1991-2010, a relatively strong tax-accounting linkage is still identified according to Lamb et al.’s (1998) hierarchy. However, as compared to the absolute dominance observed for the early post-communist stage, the state holds the second position in terms of values of stakeholder attributes, after the shareholders.
Practical implications
An increased influence of the accounting bodies, academics and business representatives, who should communicate effectively and constructively with the public structures with respect to enforcement of accounting regulations and the type of organizations involved. The higher focus on IFRS in the EU and in Romania and the evolution of Romanian economic and legal structures lead to the reassessment of the usefulness of IFRS, at least in the case of certain types of organizations. This is also due to the fact that the new IASB framework takes into consideration other types of stakeholders than (actual) shareholders along with the providers of finance from the entity and stewardship perspective.
Originality/value
This paper argues that one of the factors of state influence in accounting is the tax-accounting linkage who is still occurs in this context in present. Also, refers to another factor that caused the watering down of the state’ position, namely, the growing impact of IFRS on Romanian financial reporting.
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Sujatha Perera, Jill McKinnon and Graeme Harrison
This paper uses a stakeholder approach to examine how the role of accounting and the status of accountants changed over a 30 year period (1970 to 2000) in a major Australian…
Abstract
This paper uses a stakeholder approach to examine how the role of accounting and the status of accountants changed over a 30 year period (1970 to 2000) in a major Australian government trading enterprise. Data are gathered from semi‐structured interviews with organizational participants and documentation. The study provides support for the importance of stakeholders in shaping organizational processes and practices, including accounting practices, and for the effects of changes in stakeholder constituency and agenda on such practices. The study also provides evidence of the roles accounting and accountants may play in implementing a stakeholder agenda, including both instrumental and symbolic roles, and how the status of accountants may rise and fall commensurate with those roles.
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William E. Shafer, Richard S. Simmons and Rita W. Y. Yip
The purpose of this paper is to document relationships between accountants’ socioeconomic beliefs and attitudes and their professional commitment and ethical decisions in a…
Abstract
Purpose
The purpose of this paper is to document relationships between accountants’ socioeconomic beliefs and attitudes and their professional commitment and ethical decisions in a domain-specific context. Specifically, it investigates the relationships among Chinese tax accountants’ level of belief in the importance of corporate ethics and social responsibility, affective/normative professional commitment and ethical judgements/intentions in a case involving client pressure to commit tax fraud.
Design/methodology/approach
The study employs a survey of tax practitioners employed by public accounting firms in China. The data are analyzed using linear regression and structural equation modelling.
Findings
The stakeholder view, representing both normative and practical support for the importance of corporate ethics and social responsibility, was strongly and positively associated with professional commitment among tax practitioners. The stakeholder view also exhibited a strong negative association with intentions to engage in tax fraud. Tax accountants who possessed higher levels of professional commitment judged tax fraud as more unethical, and such ethical judgements were associated with a lower likelihood of intending to engage in fraud.
Originality/value
The associations between: first, professional accountants’ beliefs in the importance of corporate ethics and social responsibility and their level of professional commitment; and second, professional commitment and tax professionals’ ethical judgements have received little attention in the prior literature. The findings of this study suggest that the integrity of public accounting services may be influenced by relatively broad socioeconomic attitudes, and that this effect may operate partially through commitment to professional values.
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Stephanie Walton and Michael Killey
This study examines the impact of expanded geographical disclosures on nonprofessional investor judgments. Public country-by-country reporting (CBCR) is a way to increase…
Abstract
This study examines the impact of expanded geographical disclosures on nonprofessional investor judgments. Public country-by-country reporting (CBCR) is a way to increase corporate transparency, enhancing tax fairness and accountability (European Commission, 2016). Public disclosure would make large multinational companies share information about profits, taxes paid, and number of employees on a per-country basis. However, it is unclear whether nonprofessional investors would even use CBCR and how they would interpret the information. Adding to the policy debate on whether publicly available country-by-country information will be properly used, this study employs an experimental design to investigate the effect of disclosure availability and content on nonprofessional investor judgments. We find that participants receiving an expanded disclosure are able to more accurately assess the state of the social contract between the organization and society, imposing sanctions if necessary. Exploring CBCR provides timely evidence to regulators, standard setters, and tax fairness campaigners on the impact of expanded geographical disclosures as a means of increasing transparency and improving competitiveness.
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This paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings.
Abstract
Purpose
This paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings.
Design/methodology/approach
This study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports.
Findings
Based on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests.
Research limitations/implications
This examination utilizes only publicly traded companies from one developed country.
Practical implications
For the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future.
Originality/value
This study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.
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One of the most common forms of international tax avoidance is transfer pricing by multinational enterprises. The research will investigate on the factors that contribute to…
Abstract
Purpose
One of the most common forms of international tax avoidance is transfer pricing by multinational enterprises. The research will investigate on the factors that contribute to transfer pricing abuses. At present, there is no substantial and extensive transfer pricing rule in Mauritius. This paper aims to analyse the legal approaches to tackle transfer pricing issues that are undertaken by some countries whose taxation regime is similar to Mauritius. The selected countries are South Africa and UK. The objective behind the comparative study is to come up with the appropriate preventive and corrective measures for Mauritius.
Design/methodology/approach
The methodology adopted for this research consists of a critical analysis and comparative legal review of the relevant legislation, case law and literature. A minor quantitative analysis of the transfer pricing problem in Mauritius will be conducted, in terms of which interviews will be conducted with officials from different institutions in Mauritius.
Findings
The study will conclude that the absence of explicit formal rules on transfer pricing allows businesses to use the country to manipulate transfer prices to avoid paying taxes. Therefore, an amendment to Mauritius laws and regulatory framework is required to dissuade multinationals to engage in transfer pricing abuses. The study will conclude that the scope and application of the arm’s length principle needs to be formally set out in legislation and also, the use of Advance Pricing Agreements will also be recommended.
Originality/value
The research is among the first studies that compare Mauritius legal provisions on transfer pricing with that of South Africa and UK. The research is unique as it intends to provide fruitful recommendation to stakeholders in Mauritius to enhance the existing legal framework on the subject.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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