type="main"> This paper examines analysts' earnings forecasts during the period of uncertainty following a change of chief executive officer (CEO). It distinguishes between forced and non-forced CEO changes, and examines whether analysts utilize their information advantage to reduce the heightened uncertainty of a forced change of CEO. Examining a sample of Australian companies followed by analysts between 1999 and 2009, we find that forecasting accuracy is lower and earnings forecasts are more optimistic for firms experiencing forced CEO turnover compared to firms not undergoing such a change. However, dispersion is not statistically different. The results suggest that forced CEO turnover events provide a challenge to the forecasting environment for analysts. During CEO changes, investors should be aware that forecasts are less accurate and have an optimistic bias.
{"title":"Analysts' Forecasts Following Forced CEO Changes","authors":"Ka Wai Choi, Charlene Chen, Sue Wright, Hai Wu","doi":"10.1111/abac.12026","DOIUrl":"https://doi.org/10.1111/abac.12026","url":null,"abstract":"type=\"main\"> This paper examines analysts' earnings forecasts during the period of uncertainty following a change of chief executive officer (CEO). It distinguishes between forced and non-forced CEO changes, and examines whether analysts utilize their information advantage to reduce the heightened uncertainty of a forced change of CEO. Examining a sample of Australian companies followed by analysts between 1999 and 2009, we find that forecasting accuracy is lower and earnings forecasts are more optimistic for firms experiencing forced CEO turnover compared to firms not undergoing such a change. However, dispersion is not statistically different. The results suggest that forced CEO turnover events provide a challenge to the forecasting environment for analysts. During CEO changes, investors should be aware that forecasts are less accurate and have an optimistic bias.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126800251","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the development of education and experience requirements for CPAs. Relying on the past work of Siegel and Rigsby (1989) and others, we frame the current state of CPA education in the context of changes over the past century plus. Beginning with the first passage of CPA legislation, through the current state of affairs, this study adds to our understanding of the current state of education and experience requirements. The goal of this study is to combine an understanding of past events with a thorough discussion of relevant current forces, and offer a unique perspective into the future in terms of anticipated changes in accounting education including experience as well as the 150-hour requirement.
{"title":"An Analysis of the Development of Regulation of CPAs: Experience and Educational Requirements","authors":"Dennis Ortiz, J. O'Shaughnessy, P. Siegel","doi":"10.2139/SSRN.2434390","DOIUrl":"https://doi.org/10.2139/SSRN.2434390","url":null,"abstract":"This paper examines the development of education and experience requirements for CPAs. Relying on the past work of Siegel and Rigsby (1989) and others, we frame the current state of CPA education in the context of changes over the past century plus. Beginning with the first passage of CPA legislation, through the current state of affairs, this study adds to our understanding of the current state of education and experience requirements. The goal of this study is to combine an understanding of past events with a thorough discussion of relevant current forces, and offer a unique perspective into the future in terms of anticipated changes in accounting education including experience as well as the 150-hour requirement.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115942883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Aristotle’s analysis of economic exchange in the Nicomachean Ethics involves two paradigms which he addresses separately but then he stresses that there is no difference between them: barter and monetary exchange. Each one of them is rendered here separately but in a mutually consistent way by using geometrical methods which were well established and widely used in Aristotle’s intellectual surroundings. In this framework Aristotle’s ‘monetary equivalence’ in exchange appears as an application of Euclid’s proposition Elements I,43 about the equality of geometrical complements in a rectangle. Aristotle repeatedly refers to ‘own production’ when mentioning exchange between two artisans, say, ‘builder’ and ‘farmer’. The accounting worth of the quantity of ‘own production’ in terms of money is then Aristotle’s “worth” of an artisan. This interpretation helps to make sense of Aristotle’s statements of the type: ‘as builder to farmer, so food to houses’. We show that this statement is logical and plausible provided that the goods in question are measured as proportions of sales out of own production. This result solves one of the major riddles of Aristotle’s text on exchange. Accounting of exchange should be seen in connection with Aristotle’s critique of the Pythagoreans’ concept of justice. He claims that they wrongly equate justice with ‘reciprocation’. The paper does not speculate about Aristotle’s alternatives. It just shows that his text on ‘reciprocation’ can be interpreted with reference to a consistent and interesting system of geometrical accounting. This might not be his own invention, but Aristotle’s writings are the sole literary source for systematic geometrical accounting of economic exchange. This definitely merits listing Aristotle’s passages on exchange as being among the most interesting texts of ancient economic analysis.
{"title":"Aristotle's Geometrical Accounting","authors":"G. M. Ambrosi","doi":"10.2139/ssrn.2419927","DOIUrl":"https://doi.org/10.2139/ssrn.2419927","url":null,"abstract":"Aristotle’s analysis of economic exchange in the Nicomachean Ethics involves two paradigms which he addresses separately but then he stresses that there is no difference between them: barter and monetary exchange. Each one of them is rendered here separately but in a mutually consistent way by using geometrical methods which were well established and widely used in Aristotle’s intellectual surroundings. In this framework Aristotle’s ‘monetary equivalence’ in exchange appears as an application of Euclid’s proposition Elements I,43 about the equality of geometrical complements in a rectangle. Aristotle repeatedly refers to ‘own production’ when mentioning exchange between two artisans, say, ‘builder’ and ‘farmer’. The accounting worth of the quantity of ‘own production’ in terms of money is then Aristotle’s “worth” of an artisan. This interpretation helps to make sense of Aristotle’s statements of the type: ‘as builder to farmer, so food to houses’. We show that this statement is logical and plausible provided that the goods in question are measured as proportions of sales out of own production. This result solves one of the major riddles of Aristotle’s text on exchange. Accounting of exchange should be seen in connection with Aristotle’s critique of the Pythagoreans’ concept of justice. He claims that they wrongly equate justice with ‘reciprocation’. The paper does not speculate about Aristotle’s alternatives. It just shows that his text on ‘reciprocation’ can be interpreted with reference to a consistent and interesting system of geometrical accounting. This might not be his own invention, but Aristotle’s writings are the sole literary source for systematic geometrical accounting of economic exchange. This definitely merits listing Aristotle’s passages on exchange as being among the most interesting texts of ancient economic analysis.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121453121","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A growing body of literature investigates the interaction of changes in accounting standards with institutions such as investor protection laws and corporate governance mechanisms. We examine the unintended consequences of fair value accounting in determining mandated preferred dividends. We study the case of Russian energy conglomerate UES, which had a good corporate governance track record and a consistent dividend history. Following its adoption of fair value accounting, UES reported the highest quarterly profit in world corporate history, but it subsequently omitted dividends for all its shareholders. The case analysis suggests that the transitory nature of fair value adjustments and the interaction with the investment policy were important considerations in justifying the dividend omission. The reduction in preferred dividends was not offset by any capital gains, and led to a wealth transfer from preferred to ordinary shareholders. Thus, requiring the use of fair value accounting when determining the dividend distribution base can lead to unintended consequences and increase agency costs for minority shareholders.
{"title":"Unintended Consequences of Changing Accounting Standards: The Case of Fair Value Accounting and Mandatory Dividends","authors":"I. Goncharov, Sander van Triest","doi":"10.1111/abac.12033","DOIUrl":"https://doi.org/10.1111/abac.12033","url":null,"abstract":"A growing body of literature investigates the interaction of changes in accounting standards with institutions such as investor protection laws and corporate governance mechanisms. We examine the unintended consequences of fair value accounting in determining mandated preferred dividends. We study the case of Russian energy conglomerate UES, which had a good corporate governance track record and a consistent dividend history. Following its adoption of fair value accounting, UES reported the highest quarterly profit in world corporate history, but it subsequently omitted dividends for all its shareholders. The case analysis suggests that the transitory nature of fair value adjustments and the interaction with the investment policy were important considerations in justifying the dividend omission. The reduction in preferred dividends was not offset by any capital gains, and led to a wealth transfer from preferred to ordinary shareholders. Thus, requiring the use of fair value accounting when determining the dividend distribution base can lead to unintended consequences and increase agency costs for minority shareholders.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128946697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Financial accounting is rooted in national thoughts, traditions and institutional settings. As a consequence, accounting has developed heterogeneously over time to fulfill contracting purposes in divergent national environments. Against this background, we argue that the ongoing process of accounting internationalization and imposed harmonization entails the danger of deforming country-specific accounting systems, especially when the national envi-ronment for economic and contractual activities is not harmonized at all. In contrast to the more evolutionary integration and adjustment processes of the past where spillover effects have always existed, the rapidity of the current process and its coercive nature leads to increasing regulatory challenges. To support our argument and to substantiate the country-specific role of accounting for contracting purposes, we provide an in-depth case study of one country, Germany. We illustrate how the traditional German commercial law accounting system has historically evolved over centuries to meet specific contractual needs. Moreover, we show how the current process of accounting internalization has affected German accounting legislation and respective attempts to balance German accounting regulation’s past and present.
{"title":"Balancing Past and Present: Impact of Accounting Internationalization on German Accounting Regulation","authors":"Rolf Uwe Fuelbier, M. Klein","doi":"10.2139/ssrn.2200805","DOIUrl":"https://doi.org/10.2139/ssrn.2200805","url":null,"abstract":"Financial accounting is rooted in national thoughts, traditions and institutional settings. As a consequence, accounting has developed heterogeneously over time to fulfill contracting purposes in divergent national environments. Against this background, we argue that the ongoing process of accounting internationalization and imposed harmonization entails the danger of deforming country-specific accounting systems, especially when the national envi-ronment for economic and contractual activities is not harmonized at all. In contrast to the more evolutionary integration and adjustment processes of the past where spillover effects have always existed, the rapidity of the current process and its coercive nature leads to increasing regulatory challenges. To support our argument and to substantiate the country-specific role of accounting for contracting purposes, we provide an in-depth case study of one country, Germany. We illustrate how the traditional German commercial law accounting system has historically evolved over centuries to meet specific contractual needs. Moreover, we show how the current process of accounting internalization has affected German accounting legislation and respective attempts to balance German accounting regulation’s past and present.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"106 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123292771","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This write-up tries to show the linkage between accounting and civilization. The study starts by showing how accounting evolves from the pre-pacioli era where accounting was seen as an activity. Pacioli era was then the next, which runs through the industrial revolution, in which accounting was seen as a discipline. The two eras where seen to be drivers of civilization through its contributive accounting factors that gave impetus to it. The formation of joint companies paved way for reactors to civilization. Although this couldn’t have been possible without a philosophical approach of normative accounting and later on, positive accounting due to paradigm shift. For accounting to continue to be proactive to civilization, it must among others, be that accounting research needs to take back control of time by bringing future to present through issuing standards that focus on discovery and independent observation of events.
{"title":"Accounting and Civilisation","authors":"A. Saidu","doi":"10.2139/ssrn.2403992","DOIUrl":"https://doi.org/10.2139/ssrn.2403992","url":null,"abstract":"This write-up tries to show the linkage between accounting and civilization. The study starts by showing how accounting evolves from the pre-pacioli era where accounting was seen as an activity. Pacioli era was then the next, which runs through the industrial revolution, in which accounting was seen as a discipline. The two eras where seen to be drivers of civilization through its contributive accounting factors that gave impetus to it. The formation of joint companies paved way for reactors to civilization. Although this couldn’t have been possible without a philosophical approach of normative accounting and later on, positive accounting due to paradigm shift. For accounting to continue to be proactive to civilization, it must among others, be that accounting research needs to take back control of time by bringing future to present through issuing standards that focus on discovery and independent observation of events.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128869154","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
type="main"> When considering corporate taxes in a cost allocation context a trade-off is generated for shareholders. On the one hand, accelerated depreciation increases the value of a project due to the depreciation tax shield. On the other hand, accelerated depreciation most likely does not induce robust goal congruency between managers and shareholders when utilizing residual income as an incentive system and, as a consequence, over- or underinvestment could result. In this context, the literature suggests the application of particular allocation rules. When extending the relative marginal benefits cost allocation rule (Reichelstein, 1997; Rogerson, 1997) to include corporate taxes we find it to be tax neutral and to maintain its properties of generating robust incentives. As a consequence the over-/underinvestment problem is solved, but the depreciation tax shield is often not maximized. However, we illustrate that in competitive markets shareholders ought to prefer a tax neutral allocation scheme over an accelerated depreciation schedule. Thus, we show that shareholders as well as regulators have—for different reasons—a preference for tax neutral cost allocation.
{"title":"Arguments in Favour of Tax Neutral Cost Allocation","authors":"Niklas Lampenius, T. Bürkle","doi":"10.1111/abac.12031","DOIUrl":"https://doi.org/10.1111/abac.12031","url":null,"abstract":"type=\"main\"> When considering corporate taxes in a cost allocation context a trade-off is generated for shareholders. On the one hand, accelerated depreciation increases the value of a project due to the depreciation tax shield. On the other hand, accelerated depreciation most likely does not induce robust goal congruency between managers and shareholders when utilizing residual income as an incentive system and, as a consequence, over- or underinvestment could result. In this context, the literature suggests the application of particular allocation rules. When extending the relative marginal benefits cost allocation rule (Reichelstein, 1997; Rogerson, 1997) to include corporate taxes we find it to be tax neutral and to maintain its properties of generating robust incentives. As a consequence the over-/underinvestment problem is solved, but the depreciation tax shield is often not maximized. However, we illustrate that in competitive markets shareholders ought to prefer a tax neutral allocation scheme over an accelerated depreciation schedule. Thus, we show that shareholders as well as regulators have—for different reasons—a preference for tax neutral cost allocation.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115099036","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The thesis is an exploratory study of the gap between accounting research and financial reporting practices. The fundamental issue is that comprehensive accounting theories (CATs) have been largely disregarded in the formation of financial reporting practices. To understand why this should be so, the thesis studies continuously contemporary accounting (COCOA), the CAT associated with the Australian scholar Raymond John Chambers. The thesis adopts a hyperbolic reading of actor-network theory (ANT), which treats ANT on its own terms rather than diluting it by reference to other interpretive approaches. The thesis uses a single case-study approach that traces how Chambers developed what was to become COCOA throughout his life. Archival data and interviews, as well as primary and secondary literature, inform the empirical narrative. The narrative focuses on six distinct episodes: the publication of Chambers’ first academic article in 1955, the debate and events that followed this article, attempts to influence financial reporting practices in the US in the 1960s, the publication of Chambers’ most comprehensive statement on COCOA in 1966, further attempts to influence financial reporting practices in the US, UK, and Australia in the 1970s, and three instances where financial statements were prepared in accordance with COCOA in the 1970s. Through the empirical narrative, the thesis contributes to knowledge about the gap between accounting research and financial reporting practices by studying an actual CAT and the attempts of its proponent to change conventional thinking. What emerges is a nuanced narrative about COCOA filled with various actors, not normally associated with accounting research, that nonetheless turn out to be vital to the success of COCOA.
本文对会计研究与财务报告实践之间的差距进行了探索性研究。最根本的问题是，综合会计理论(CATs)在财务报告实践的形成过程中很大程度上被忽视了。为了理解为什么会这样，本文不断研究当代会计(COCOA)，这是澳大利亚学者雷蒙德·约翰·钱伯斯(Raymond John Chambers)提出的会计准则。本文采用了对行动者网络理论(ANT)的双曲解读，它将ANT视为自己的术语，而不是通过参考其他解释方法来稀释它。本文采用单一案例研究的方法，追溯钱伯斯一生中是如何发展成为COCOA的。档案资料和访谈，以及主要和次要文献，为经验叙述提供信息。故事集中在六个不同的情节上:钱伯斯1955年发表的第一篇学术文章，这篇文章之后的争论和事件，20世纪60年代试图影响美国的财务报告实践，1966年钱伯斯发表了关于COCOA的最全面的声明，20世纪70年代进一步试图影响美国、英国和澳大利亚的财务报告实践，以及20世纪70年代根据COCOA编制财务报表的三个实例。通过实证叙述，本文通过研究实际的CAT及其支持者改变传统思维的尝试，有助于了解会计研究与财务报告实践之间的差距。出现的是一个关于COCOA的细致入微的叙述，其中充满了各种各样的参与者，通常与会计研究无关，但事实证明，这些参与者对COCOA的成功至关重要。
{"title":"The Rise and Fall of Comprehensive Accounting Theories: R. J. Chambers and Continuously Contemporary Accounting","authors":"Martin E. Persson","doi":"10.2139/SSRN.2329188","DOIUrl":"https://doi.org/10.2139/SSRN.2329188","url":null,"abstract":"The thesis is an exploratory study of the gap between accounting research and financial reporting practices. The fundamental issue is that comprehensive accounting theories (CATs) have been largely disregarded in the formation of financial reporting practices. To understand why this should be so, the thesis studies continuously contemporary accounting (COCOA), the CAT associated with the Australian scholar Raymond John Chambers. The thesis adopts a hyperbolic reading of actor-network theory (ANT), which treats ANT on its own terms rather than diluting it by reference to other interpretive approaches. The thesis uses a single case-study approach that traces how Chambers developed what was to become COCOA throughout his life. Archival data and interviews, as well as primary and secondary literature, inform the empirical narrative. The narrative focuses on six distinct episodes: the publication of Chambers’ first academic article in 1955, the debate and events that followed this article, attempts to influence financial reporting practices in the US in the 1960s, the publication of Chambers’ most comprehensive statement on COCOA in 1966, further attempts to influence financial reporting practices in the US, UK, and Australia in the 1970s, and three instances where financial statements were prepared in accordance with COCOA in the 1970s. Through the empirical narrative, the thesis contributes to knowledge about the gap between accounting research and financial reporting practices by studying an actual CAT and the attempts of its proponent to change conventional thinking. What emerges is a nuanced narrative about COCOA filled with various actors, not normally associated with accounting research, that nonetheless turn out to be vital to the success of COCOA.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"142 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126809377","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
According to Susan Hamill, Judeo-Christian ethics call on us to raise marginal tax rates. Hamill bases this on the belief that higher taxes will yield more income redistribution to the poor and make them better off. Whether or not tax policy ought to be based on religious criteria is beyond the scope of this article. What the article argues instead is that Hamill has an imperfect understanding of both ethical reasoning and of the relationship between taxes and the welfare of the poor. The problems with her ethical reasoning start out with the canard that higher taxes represent simple self-sacrifice. This fallacy allows her to blithely disregard any ethical problems associated with the coercive nature of taxes. Hamill goes on to argue that there is no conflict between her call for higher taxation in the name of Christianity and Boyd’s call for Christians to focus on their own actions rather than on amassing power to coerce others. After considering Hamills ethical reasoning, this article points out that there is no clear positive relationship between higher tax rates and the welfare of the poor in the first place. For one thing, the actual allocation of government expenditures is influenced by a number of stakeholders and is not directly tied to current tax revenues. More importantly, higher tax rates are associated with a variety of disincentives for work and production. This may in turn slow down economic growth and thus reduce the future well-being of everyone, including the poor.
{"title":"Some Thoughts on Hamill, the Two Kingdoms, and the Ethics and Logic of Higher Tax Rates and Redistribution","authors":"Petur O. Jonsson","doi":"10.2139/ssrn.2302911","DOIUrl":"https://doi.org/10.2139/ssrn.2302911","url":null,"abstract":"According to Susan Hamill, Judeo-Christian ethics call on us to raise marginal tax rates. Hamill bases this on the belief that higher taxes will yield more income redistribution to the poor and make them better off. Whether or not tax policy ought to be based on religious criteria is beyond the scope of this article. What the article argues instead is that Hamill has an imperfect understanding of both ethical reasoning and of the relationship between taxes and the welfare of the poor. The problems with her ethical reasoning start out with the canard that higher taxes represent simple self-sacrifice. This fallacy allows her to blithely disregard any ethical problems associated with the coercive nature of taxes. Hamill goes on to argue that there is no conflict between her call for higher taxation in the name of Christianity and Boyd’s call for Christians to focus on their own actions rather than on amassing power to coerce others. After considering Hamills ethical reasoning, this article points out that there is no clear positive relationship between higher tax rates and the welfare of the poor in the first place. For one thing, the actual allocation of government expenditures is influenced by a number of stakeholders and is not directly tied to current tax revenues. More importantly, higher tax rates are associated with a variety of disincentives for work and production. This may in turn slow down economic growth and thus reduce the future well-being of everyone, including the poor.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115357625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Governments around the world are under constant pressure to reduce deficits and balance their national budgets. The previous heterodoxy of suggesting new or higher taxes has now become orthodoxy. A recent example is the returned Barack Obama administration, which is emboldened to the task of addressing ways to increase tax receipts. This study covers the period just prior to and immediately after the introduction of new tax legislation in Australia in an era of partisan, polarised politics. Four theories (grounded in data collected) provide explanations from contextual elements, conditions and events, all of which have an effect on the success of a new tax.The Minerals Resource Rent Tax (MRRT) took effect in July 2012. The MRRT is the subject of this qualitative research study, which utilises theories from an analysis of print media data relating to the tax. The study contributes to an understanding of the issues that require consideration when a new tax is implemented as well as the politics of tax policy. The findings have lessons for Australia as well as other jurisdictions when considering new tax legislation.
{"title":"A Grounded Theory Approach to the Minerals Resource Rent Tax","authors":"Diane Kraal","doi":"10.2139/ssrn.2394400","DOIUrl":"https://doi.org/10.2139/ssrn.2394400","url":null,"abstract":"Governments around the world are under constant pressure to reduce deficits and balance their national budgets. The previous heterodoxy of suggesting new or higher taxes has now become orthodoxy. A recent example is the returned Barack Obama administration, which is emboldened to the task of addressing ways to increase tax receipts. This study covers the period just prior to and immediately after the introduction of new tax legislation in Australia in an era of partisan, polarised politics. Four theories (grounded in data collected) provide explanations from contextual elements, conditions and events, all of which have an effect on the success of a new tax.The Minerals Resource Rent Tax (MRRT) took effect in July 2012. The MRRT is the subject of this qualitative research study, which utilises theories from an analysis of print media data relating to the tax. The study contributes to an understanding of the issues that require consideration when a new tax is implemented as well as the politics of tax policy. The findings have lessons for Australia as well as other jurisdictions when considering new tax legislation.","PeriodicalId":123337,"journal":{"name":"History of Accounting eJournal","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133562581","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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