Template-Type: ReDIF-Article 1.0
Author-Name: Lynda S. Livingston
Title: A HISTORICAL PERSPECTIVE ON DUTCH AUCTION RATE PREFERRED STOCK
Abstract: In February of 2008, the $330 billion auction-rate security market began to fall apart. Brokerage houses that managed the periodic auctions refused to support their issues, so that auctions failed and liquidity disappeared. Investors had a wake-up call: an asset they had thought was a money-market equivalent was in fact something much more risky. In this paper, we consider this current meltdown in light of the 1980s history of Dutch Auction Rate Preferred Stock (DARPS). We conclude that a significant contributor to the recent problems was the marketing of DARPS to individuals, when the security was designed for corporate investors.
Classification-JEL: G01, G32, K34
Keywords: Preferred Stock, Auction, Dividends Received Deduction
Journal: Accounting & Taxation
Pages: 1-20
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-1.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:1-20

Template-Type: ReDIF-Article 1.0
Author-Name: Karel Brychta,
Title: EVIDENCE ON EFFECTIVE TAX RATES IN THE CZECH REPUBLIC
Abstract: The paper describes the development of the effective tax of natural persons in the Czech Republic. The analysis covers the period from 1993 to 2009. Two categories of taxpayers are compared: the first a single childless taxpayer, the other a family with two children, where only one spouse earns incomes. The results of the analysis clearly show a gradual, but not steady, decrease in effective tax rates for both categories of taxpayers. For single taxpayers, the effective tax rate decrease is in direct proportion with the amount of tax base. For married taxpayers the effective tax rate decrease is relatively steady for the whole time interval.
Classification-JEL: H2; K3; P2
Keywords: Effective tax rate, development, incomes from enterprise, natural person, Czech Republic
Journal: Accounting & Taxation
Pages: 21-32
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-2.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:21-32

Template-Type: ReDIF-Article 1.0
Author-Name: C. W. Yang
Author-Name: Ken Hung
Title:STABILITY OF RENTS AND RETURNS AS A SOURCE OF INTERNAL FINANCING: EVIDENCE FROM APPALACHIAN COAL PRODUCERS
Abstract: The role of steam coal was constrained by the Kyoto Protocol and the Copenhagen Climate Summit which call for reduced emissions of green house gases and related measures. These agreements increase the importance in properly managing emissions. Coupled with rapidly increasing demand from China and India, a study on the rents of the Appalachian coal mines is as important as it is timely. In this paper, we show that response surfaces of producers' surpluses are nonlinear with respect to changes in any parameters. They are closely related to a given flow pattern in which only m+n-l positive coal flows prevail. Only when the flow patterns change does the response surfaces of the producers' surplus undergo structural changes. Production taxes decrease supplier’s welfare. Furthermore the result of the Friedman test indicates that the relative welfare position, measured in terms of producers' rents, differs significantly in our simulation.
Classification-JEL:B41; C15; H2; M48
Keywords: Appalachian coal producers, rents and returns, internal financing, simulation technique, non-liner response function
Journal: Accounting & Taxation
Pages: 33-46
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-3.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:33-46

Template-Type: ReDIF-Article 1.0
Author-Name: Laetitia Pozniak,
Title:FINANCIAL COMMUNICATION ON THE WEB EVIDENCE FROM BELGIUM
Abstract: The ambition of this research is to identify the determinants of internet financial communication of small- and medium-sized firms quoted on non-regulated markets in Belgium. First, a scoring was established to determine the intensity with which firms use the internet as a vector of financial communication. To do this, an analysis grid was built on the basis of a review of the literature, highlighting the rules for disclosure of information through the Web. The score was then regressed via ordinary least squares on variables presented in the literature as determiners of the firms’ financial communication. The main results of the findings bring to light three fundamental determiners of this score: membership or not in the information technology sector, the performance of the company and the market on which the company is quoted.
Classification-JEL: G10, M15, C31, O32.
Keywords: financial communication, non-regulated financial markets, Web site, Small- and medium-sized firms.
Journal: Accounting & Taxation
Pages: 47-58
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-4.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:47-58

Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Ruiz-Porras
Author-Name: Celina López-Mateo
Title: MARKET CONCENTRATION MEASURES AND INVESTMENT DECISIONS IN MEXICAN MANUFACTURING FIRMS
Abstract: We study how different measures of market concentration explain investment decisions of Mexican manufacturing firms. The Herfindahl-Hirschman Index is the traditional measure of market structure concentration. The Dominance Index is a competition measure used by Mexican regulators. The econometric assessments suggest that investment decisions of Mexican firms can be better explained by the Dominance Index than by the Herfindahl-Hirschman Index. Thus our results suggest that the Mexican Dominance Index might be useful as a measure of market structure and competition. The results also suggest that market concentration reduces investment. These conclusions are based on several econometric assessments.
Classification-JEL: L40; L22; L60
Keywords: 
Journal: Accounting & Taxation
Pages: 59-69
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-5.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:59-69

Template-Type: ReDIF-Article 1.0
Author-Name: Terrance Jalbert
Author-Name: Mercedes Jalbert
Author-Name: Lucila Zarraga
Title: ADDITIONAL EVIDENCE ON UNIVERSITY RANKINGS BY COST OF LIVING ADJUSTED FACULTY COMPENSATION
Abstract: This paper ranks 500 universities and colleges based on compensation paid to their faculty. The analysis examines universities both on a raw basis and cost of living adjusted basis. This work extends the previous literature by examining a broader group of schools. This research includes private universities and community colleges. Most previous literature is limited to the examination of public universities. Similar to previous papers, the results here show that cost of living adjusted salaries differ dramatically from raw salary figures. The results suggest that administrators should design compensation packages that reflect cost of living realities in their area. Faculty seeking employment opportunities should carefully consider cost of living issues.
Journal: Accounting & Taxation
Pages: 71-94
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-6.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:71-94

Template-Type: ReDIF-Article 1.0
Author-Name: Kevin A. Diehl,
Title: RATIO OF DEFERRED TAX LIABILITIES TO SHARES AS A PREDICTOR OF STOCK PRICES
Abstract: This research examines whether deferred tax ratios predict US stock prices. The importance of deferred tax ratios stems from the existence of two separate reporting systems. US financial reporting is subject to managerial discretion, but US tax reporting is not. Investors may prefer to review tax numbers which are free from earnings management. However, only financial numbers are publicly disclosed. Deferred tax items enable investors to translate the financial results into less subjective numbers. Deferred tax liabilities also indicate successful tax planning. Correlation and regression establish the ratio of deferred tax liabilities over shares is more related to price than traditional ratios, such as basic earnings per share, earnings per share including extra items, cash flow per share, and book value per share.
Classification-JEL: 
Keywords: M40
Journal: Accounting & Taxation
Pages: 95-105
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-7.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:95-105

Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Wen Chien
Author-Name: Roger W. Mayer
Author-Name: John T. Sennetti
Title: AUDIT COMMITTEE EFFECTIVENESS IN THE LARGEST US PUBLIC HOSPITALS: AN EMPIRICAL STUDY
Abstract: Most research focuses on the role of audit committees in the private sector and less in the public sector, especially public hospitals. Therefore, we investigate the role and quality of public hospital audit committees in controlling problems in financial reporting and in major Federal award programs. We investigate all publicly available Office of Management and Budget Circular A-133 audit reports on internal controls over Federal reporting for public hospitals. We then conduct a follow-up study on the administrators of these reporting units. We find the presence of a committee and the committee’s specific quality characteristics of independence, financial expertise, and increased activity, positively correlate with reduced frequencies of internal control problems. In addition, we find audit committees with financial expertise associated less frequently with material weaknesses over financial reporting and over major Federal programs. Our findings extend corporate governance research to the public health care sector, provide additional support for the Sarbanes-Oxley Act of 2002 and the Office of Management and Budget Circular A-123 requirements, and answer questions found in prior research on non-profit hospitals given by Vermeer et al. (2006) and Pridgen & Wang (2007).
Classification-JEL: M4, H5, H7
Keywords: Audit committee; internal control; Office of Management and Budget Circular A-133 audit; material weakness.
Journal: Accounting & Taxation
Pages: 107-127
Volume: 2
Issue: 1
Year: 2010
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v2n1-2010/AT-V2N1-2010-8.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:2:y:2010:i:1:p:107-127