scholarly journals Managerial Ability and Tax Planning: Trade-Off between Tax and Nontax Costs

2020 ◽  
Vol 12 (1) ◽  
pp. 370
Author(s):  
KangYoung Lee ◽  
SungMan Yoon
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Negative Relationship ◽  
Tax Planning ◽  
Management Control ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Managerial Ability ◽  
Trade Off ◽  
Tax Cost

This study aims to investigate the effects of managerial ability (MA) on the trade-off between tax and nontax costs in the sustainability perspectives of firms. An effective tax planning for corporate sustainability is to consider tax and financial reporting costs at the same time and find the optimal cost balance that exists between these two costs. MA is measured by the data envelopment analysis (DEA) frontier and Tobit regression model. DEA frontier methods can be measured by capturing the changes in market value, excluding the characteristics of firms, which are beyond management control. The interest variables of this study are tax costs, nontax costs, and the trade-off between them. This study has three main findings. First, a significantly positive relationship exists between MA and the tax cost variable. Second, a significantly negative relationship exists between MA and the nontax cost variable. Third, MA has a negative relation with the trade-off between tax and nontax costs. Therefore, this study is the first to analyze the relationship between MA and the trade-off between tax and nontax costs. This study implies that a manager should consider the trade-off between tax and nontax costs to improve the firm’s value as MA is reflected by tax and financial reporting simultaneously.

Impact of Competition on Efficiency of Microfinance Institutions: Cross Country Comparison of India and Bangladesh

2021 ◽  
pp. 097300522110052
Author(s):  
Joyeeta Deb ◽  
Ram Pratap Sinha
Keyword(s):  
Information Exchange ◽  
Data Envelopment ◽  
Bottom Of The Pyramid ◽  
Microfinance Institutions ◽  
Tobit Regression ◽  
Social Efficiency ◽  
Trade Off ◽  
Social Objective ◽  
Efficient Level ◽  
Potential Impact

Increased competition coupled with commercialisation in the Indian microfinance sector has brought about many major transformations. From an impact-driven development programme, microfinance institutions (MFIs) today emerged as commercially oriented profit-making entities. In addition to bringing their commercial and social objectives into balance, MFIs today are striving for efficient level of operation. Efficiency in the level of operation of MFIs allows them to remain competitive and attain financial sustainability. However, it is also imperative for MFIs to remain socially committed towards the ultimate mission of reaching the poorest at the bottom of the pyramid. Hence, it is of research interest to see the trade-off between MFIs’ social objective of spreading outreach and at the same time remaining financially sustainable. Against this backdrop, this article is devoted to study the potential impact of competition and commercialisation on efficiency of MFIs in India and Bangladesh. The study is carried over 75 MFIs altogether over the period of 8 years from 2009 to 2016. The data have been collected from microfinance information exchange database. Efficiency is measured through technical efficiency (TE) scores as estimated under data envelopment analysis. In order to establish the association between competitions, which is estimated by the Herfindahl–Hirschman index (HHI), tobit regression is used. The study evidenced increasing level of competition in the sector over the years, but it is more pronounced in India as against Bangladesh. In order to analyse the trade-off, TE scores are separately estimated under both financial and social measures. TE score is found to be higher in case of social measures of efficiency as against financial efficiency. Further, under both the measures, competition is found to be having a significant impact on both financial and social efficiency.

Panel Data Analysis of Determinants of Leverage in the Automobile Industry in India

GIS Business ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 29-47
Author(s):  
Vibha Tripathi
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Automobile Industry ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Order Theory ◽  
Ordinary Least Squares ◽  
Pecking Order ◽  
Trade Off ◽  
Coverage Ratio

The study tries to investigate the key determinants of capital structure of leading automobile companies and the Automobile Industry in India. The study also tracks the theory implications, i.e. trade off vs. pecking order in these firms and the industry in general. An attempt is to see, if individually each sample company and the whole industry are influenced by the same determinants of capital structure. Pooled ordinary least squares and panel data econometric techniques such as fixed effect models are used to investigate the most significant determinants that affect the capital structure choice of 10 leading companies categorized as BSE Auto Top 100 and the Automobile Industry as a whole for a period of 14 years from 2000–2001 to 2013–2014. The study reveals some interesting facts and results. Multiple regression analysis reveals that while profitability and size are significant determinants in most of the leading companies; NDTS, Growth, and Debt service coverage ratio are not significant for these companies. While the Panel data results of the Automobile Industry as a whole reveals that profitability is the only significant determinant having negative relationship with debt equity ratio; and the other variables are insignificant. Also individual companies coefficient results shows implications of mix of pecking order and trade off theories while the panel data results of the whole Industry strongly supports the Pecking order theory.

Harmonization of the human resource audit in the field of international practice

2020 ◽  
pp. 25-32
Author(s):  
N.S. Bieliaieva
Keyword(s):  
High Risk ◽  
Human Resource ◽  
Financial Reporting ◽  
Workforce Planning ◽  
Global Scale ◽  
Management Control ◽  
Audit Risk ◽  
Service Contracts ◽  
Medium Risk ◽  
Talent Acquisition

The article explores the possibilities and problems of the process of harmonization of the HR audit in the field of international practice, taking into account the specifics of the market environment of Ukraine. The views of different authors on the problem of HR auditing were investigated. The idea was justified that the harmonization of accounting and financial reporting of economic entities is closely linked with the globalization of economic processes and the economy as a whole on a global scale, the processes of informatisation and digitalization of society, the same as for HR processes. During considering the concept of “HR audit” it should not be forgetting about the legislative component — HR audit is aimed, inter alia, at identifying violations with the law for timely management of weaknesses in the policy of the enterprise in the field of labor. Categorization of observations by impact of importance (high-risk, medium-risk, low-risk — categorization) was investigated; examples for high-risk observations (on the example of: workforce planning, service contract modalities) and medium-risk (on the example of: recruitment process governance, alignment of strategy and work plans, HR functional capacity in Country Offices, talent acquisition in Cos, recruitment processes in Cos, employee on-boarding, training and separation, national non-staff salary scales and pay adjustments, staffing and structure review exercises, social security transfers to service contracts, automation, information and data management, oversight of HR functions in Cos) are given in consideration with agreed actions of HRM and auditor. The ratings (satisfactory, partially satisfactory or unsatisfactory) of an HR audit that are part of the system of evaluating the adequacy of company’s audit risk management, control and governance processes were investigated. The point that the human resource auditing is something that many companies do annually, just as they audit their financial information (despite of their field of activity) is overlined in the article. The harmonization of the HR audit in the field of international practice is a process of unification of methods and principles of auditing in the form of standards is observed.

Distribution and Determinants of Fallow Land among Farmers of Central Dry Zone of Karnataka

2020 ◽  
pp. 390-395
Keyword(s):  
Arable Land ◽  
Negative Relationship ◽  
Fallow Land ◽  
Tobit Regression ◽  
Total Size ◽  
High Tendency ◽  
Fertility Status ◽  
Dry Zone ◽  
Land Holdings ◽  
Tobit Regression Model

Farmers in dry regions of India have a high tendency for leaving their land fallow. To decipher this phenomenon, the study was carried out in the Tumkur district of the central dry zone of Karnataka. Results from the study revealed a positive relationship between the size of land holdings and land fallow. The major reason stated by farmers for leaving their fallow land was the scarcity of rainfall or irrigation, and poor land fertility status. The Tobit regression model was fitted to study the determinants of the decision of farmers to keep the arable land fallow, where, dependent variable considered was the share of fallow land in the total size of landholding of farm households. It was found that the availability of water for irrigation and family labour has a negative relationship with fallow land. Other factors determining the extent of fallow land were the distance of land from residences, poor land fertility status and availability of credit.

Corporate Social Responsibility and Financial Reporting Quality:Evidence from Restatements

2020 ◽  
Author(s):  
Yi-Hung Lin ◽  
Hua-Wei (Solomon) Huang ◽  
Mark E. Riley ◽  
Chih-Chen Lee
Keyword(s):  
Financial Reporting ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Csr Reporting ◽  
Corporate Social ◽  
Reporting Environment ◽  
The Relationship

We find a negative relationship between aggregate CSR scores and the probability that firms restated financial statements over the period 1991-2012. We then break that period into three sub-periods in order to determine whether the relationship holds for all three sub-periods. During the sub-periods of 1991-2001 and 2002-2005, the negative CSR score - restatement probability relationship holds. The negative relationship disappears in the 2006-2012 sub-period. Additional analyses indicate CSR scores are significantly higher in the 2006-2012 sub-period, suggesting the disappearance of the relationship between aggregate CSR scores and financial statement quality may relate to changes in CSR assessments and the CSR reporting environment. Our findings update the literature linking CSR scores and financial reporting quality and identify the need for further research as to the reasons the link between these constructs disappeared.

scholarly journals The Effect of the Launch of Bitcoin Futures on the Cryptocurrency Market: An Economic Efficiency Approach

Mathematics ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 413
Author(s):  
David Vidal-Tomás ◽  
Ana M. Ibáñez ◽  
José E. Farinós
Keyword(s):  
Data Envelopment Analysis ◽  
Economic Efficiency ◽  
Data Envelopment ◽  
Trade Off ◽  
Risk Return ◽  
Malmquist Indexes

We analyze the economic efficiency of the cryptocurrency market after the launch of Bitcoin futures by means of the Data Envelopment Analysis and Malmquist Indexes. Our results show that the introduction of Bitcoin futures did not affect the economic efficiency of the cryptocurrency market. However, we observe that Bitcoin obtained the highest risk-return trade-off due to its liquidity compared to the rest of cryptocurrencies. Therefore, our paper underlines the support of investors on Bitcoin to the detriment of the rest of cryptocurrencies.

Nitrogen use efficiency: does a trade-off exist between the N productivity and the mean residence time within species?

2008 ◽  
Vol 56 (3) ◽  
pp. 272 ◽  
Author(s):  
Zhi Y. Yuan ◽  
Han Y. H. Chen ◽  
Ling H. Li
Keyword(s):  
Residence Time ◽  
Nitrogen Use Efficiency ◽  
Mean Residence Time ◽  
Negative Relationship ◽  
Controlled Experiments ◽  
Nitrogen Use ◽  
Trade Off ◽  
N Supply ◽  
Use Efficiency ◽  
The Mean

Nitrogen use efficiency (NUE) can be divided into two components, i.e. N productivity (A) and the mean residence time (MRT). Controlled experiments indicate that there is not a trade-off between A and MRT within species, but this theory has not been well tested in field conditions. Here, we studied the A, MRT and NUE of Stipa krylovii Roshev. in a grassland over 4 years of N fertilisation experimentation. The three parameters (A, MRT and NUE) were significantly related to soil N supply and there was a negative relationship between A and MRT within this species (r = –0.775, P < 0.05), i.e. plants with higher A had lower MRT. Our results showed a trade-off between A and MRT within this Stipa species and this observed trade-off was attributed to different responses of A and MRT to soil fertility.

Labour-use Efficiency of Assam Gramin Vikash Bank: Branch- and District-level Analysis

2021 ◽  
pp. 232102222110243
Author(s):  
Mohuya Deb Purkayastha ◽  
Joyeeta Deb ◽  
Ram Pratap Sinha
Keyword(s):  
Efficiency Score ◽  
Significant Variable ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Second Stage ◽  
Time Period ◽  
Use Efficiency ◽  
The Mean ◽  
The Impact ◽  
Observation Period

The present study estimated labour-use efficiency of 48 branches of Assam Gramin Vikash Bank at its branch level, covering three districts of Barak Valley, which falls under Silchar region of the bank for the time period from 2010–2011 to 2017–2018. The study applied data envelopment analysis for estimating labour-use efficiency. In the second stage, the study applied censored Tobit regression for determining the impact of several contextual variables on efficiency. The study reveals that the mean labour-use efficiency score of the selected branches is 76% when averaged for the in-sample branches over the observation period. Results of the Tobit regression identified cluster 2 and total business of the branches as the significant factors for determining efficiency and the number of employees as a significant variable influencing inefficiency. JEL Classifications: G2, G20, G21, J3

scholarly journals Why “Less is More” in Non-Financial Reporting Initiatives: Concrete Steps Towards Supporting Sustainability

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Georgina Tsagas ◽  
Charlotte Villiers
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Less Is More ◽  
Csr Reporting ◽  
Corporate Reporting ◽  
Long Run ◽  
The Individual ◽  
Key Aspects

AbstractCalls are repeatedly made on corporations to respond to the challenges facing the planet from a sustainable development perspective and governments take solace in the idea that corporations' transparency on their corporate activity in relation to sustainability through voluntary reporting is adequately addressing the problem. In practice, however, reporting is failing to deliver truly sustainable results. The article considers the following questions: how does the varied reporting landscape in the field of non-financial reporting impede the objectives of fostering corporations' sustainable practices and which initiative, among the options available, may best meet the sustainability objectives after a decluttering of the landscape takes place?The article argues that the varied corporate reporting landscape constitutes a key obstacle to fostering sustainable corporate behaviour, insofar as the flexible and please all approach followed in the context of corporate sustainability reporting offers little to no real incentive to companies to behave more sustainably and ultimately pleases none in the long run. The case made is that “less is more” in non-financial reporting initiatives and hence the article calls for a revision of key aspects of the European Non-Financial Reporting Directive, which, as is argued, is more likely to achieve the furtherance of sustainable corporate behaviour. Although the different reporting requirements offer the benefits of focussing on different corporate goals and activities, targeting different audiences and allowing for a level of flexibility that respects the individual risks to sustainability associated with each industry, the end result is a landscape that lacks overall consistency and comparability of measurements and accountabilities, making accountability more, rather than less, difficult to achieve.The article acknowledges the existence of several variances relating to the notion of sustainability per se, which continues to remain a contested concept and variances between companies and industries in relation to how each is operating sustainably or unsustainably respectively. Such variances have so far inhibited the legislator from easily outlining through tailored legislation the individual risks to global sustainability in an all-encompassing manner. The end product is a chaotic system of financial reporting, CSR reporting, non-financial reporting and integrated reporting and little progress to increase comparability and credibility in order for companies to be held accountable and to behave in ways that do not harm the planet. A “clean up” of the varied initiatives in the terrain of non-financial reporting is recommended.

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