scholarly journals Adjustment costs of institutional tax changes from the audit pricing perspective: Empirical evidence from the VAT reform

2021 ◽  
Author(s):  
Binglei Duan ◽  
Xinxiao Ma ◽  
Taijie Tang ◽  
Guojian Zheng
Keyword(s):  
Empirical Evidence ◽  
Adjustment Costs ◽  
Audit Pricing ◽  
Tax Changes ◽  
Vat Reform

NOMINAL RIGIDITIES, RESIDENTIAL INVESTMENT, AND ADJUSTMENT COSTS

2009 ◽  
Vol 14 (1) ◽  
pp. 136-148 ◽  
Author(s):  
Charles T. Carlstrom ◽  
Timothy S. Fuerst
Keyword(s):  
General Equilibrium ◽  
Empirical Evidence ◽  
Equilibrium Model ◽  
Durable Goods ◽  
Adjustment Costs ◽  
American Economic Review ◽  
Housing Construction ◽  
Residential Housing ◽  
Habit Persistence ◽  
Residential Investment

Evidence suggests that durable goods and residential housing are more flexibly priced than nondurables and services. Using a standard sticky price general equilibrium model, Barsky, House, and Kimball [American Economic Review 97(3) (2007), 984–998] demonstrate that if durable goods are flexibly priced and nondurables are sticky, then a monetary contraction leads to an expansion in production in the durable sector. This is wildly at odds with the empirical evidence. This paper demonstrates that if three features are added to the model (sticky nominal wages, housing construction adjustment costs, and habit persistence in consumption), it delivers sectoral implications that are broadly consistent with the data.

Information Technology Investment and Commercialized Innovation Performance: Dynamic Adjustment Costs and Curvilinear Impacts

MIS Quarterly ◽  
2021 ◽  
Vol 45 (3) ◽  
pp. 1007-1024
Author(s):  
Prasanna Karhade ◽  
◽  
John Qi Dong ◽  
Keyword(s):  
Information Technology ◽  
Empirical Evidence ◽  
Broad Spectrum ◽  
Adjustment Costs ◽  
Innovation Performance ◽  
Curvilinear Relationship ◽  
Dynamic Adjustment ◽  
It Investment ◽  
Technology Investment ◽  
Information Technology Investment

Firms’ investment in information technology (IT) has been widely considered to be a key enabler of innovation. In this study, we integrate prior findings on the augmenting pathways (where IT investment supports innovation) with a new theory explaining the suppressing pathways (where dynamic adjustment costs associated with large IT investment can be detrimental to innovation) to propose an overall inverted U-shaped relationship between IT investment and commercialized innovation performance (CIP). To test our theory, we analyze a unique panel dataset from the largest economy in Europe and discovered a curvilinear relationship between IT investment and CIP for firms across a broad spectrum of industries. Our research presents empirical evidence corroborating the augmenting and suppressing pathways linking IT investment and CIP. Our findings serve as a cautionary signal to executives, discouraging overinvestment in IT.

An Empirical Evidence of Audit Firm Merger and Audit Pricing in Malaysia

2007 ◽  
Vol 5 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Hilwani Hariri ◽  
Norshimah Abdul Rahman ◽  
Ayoib Che Ahmad
Keyword(s):  
Empirical Evidence ◽  
Audit Pricing ◽  
Audit Firm

scholarly journals Importance of country factors for global differences in audit pricing: New empirical evidence

2021 ◽  
Author(s):  
Brigitte Eierle ◽  
Sven Hartlieb ◽  
David C. Hay ◽  
Lasse Niemi ◽  
Hannu Ojala
Keyword(s):  
Empirical Evidence ◽  
Audit Pricing ◽  
Country Factors

Asymmetric Cost Behavior

2014 ◽  
Vol 26 (2) ◽  
pp. 43-79 ◽  
Author(s):  
Rajiv D. Banker ◽  
Dmitri Byzalov
Keyword(s):  
Empirical Evidence ◽  
Adjustment Costs ◽  
Financial Accounting ◽  
Alternative View ◽  
Behavior Model ◽  
Managerial Decisions ◽  
Cost Behavior ◽  
Resource Adjustment ◽  
Asymmetric Cost ◽  
Asymmetric Cost Behavior

ABSTRACT We synthesize the growing literature on asymmetric cost behavior—a new way of thinking about costs and, by extension, earnings. While the traditional cost behavior model describes a mechanistic relation between activity and costs, this alternative view recognizes the primitives of cost behavior—resource adjustment costs and managerial decisions. These primitives give rise to “sticky” and “anti-sticky” costs, along with traditional “fixed” and “variable” costs as extreme cases. We formulate an integrated framework of asymmetric cost behavior and review the empirical evidence in support of this framework and its implications for both cost and financial accounting research. We clarify empirical issues and show that recent contrary claims about the validity of findings in the literature are unwarranted because of econometric errors. We present new comprehensive evidence from Global Compustat, which demonstrates that asymmetric cost behavior is a pervasive global phenomenon. We also discuss research opportunities.

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