European Financial and Accounting Journal, 2015 (vol. 10), issue 3

Articles

Measuring the Effective Tax Burden of Lifetime Personal Income

Jan Vlachý

European Financial and Accounting Journal 2015, 10(3):5-14 | DOI: 10.18267/j.efaj.142  

This paper designs and tests a comprehensive model, solved by statistical simulation, which describes and quantifies the effect of the tax system and lifelong income characteristics on the effective tax burden of a population or its segment. In the present application the model is structured and calibrated to analyse the category of employed persons in the Czech Republic. The Czech tax and levy system is shown to be mildly progressive, with a steep digression for very high incomes. It is also shown how the initial income endowment, lifelong income volatility and the minimum wage level impact the structure of effective tax rates, as well as expected...

European Equity Market Contagion: An Empirical Application to Ireland's Sovereign Debt Crisis

Shaen Corbet, Cian Twomey

European Financial and Accounting Journal 2015, 10(3):15-34 | DOI: 10.18267/j.efaj.143  

This paper examines the time-varying conditional correlations of daily European equity market returns during the Irish sovereign debt crisis. A dynamic conditional correlation (DCC) multivariate GARCH model is used to estimate to what extent the collapse of Irish equity markets and subsequent troika intervention in Ireland spilled over upon European equity markets during this crisis. During the Irish financial crisis from 2007 to 2010, strong contagion effects are uncovered between Irish equity markets and the investigated European equity markets. The contagion effects are found to ease dramatically in the period after troika intervention in Irish...

Influence of Development of the Organization of the Operational Accounting and Control on the Enterprises' Management of Machine-Building in Ukraine

Olga Starenka

European Financial and Accounting Journal 2015, 10(3):35-44 | DOI: 10.18267/j.efaj.144  

The article considers the operational management system of machine-building enterprises in Ukraine under the conditions of interpenetration of accounting and control functions and their deep integration due to shift of the control centres with the centres of operational decision-making. It has been proved that control timely influences behaviour and conditions of economic objects using target indicators, norms and regulations, estimates and the data of operational accounting, thus it takes active part in shaping the final results of running the enterprise. This explains its importance in the operational management system. It has been considered that...

Sixth Method as a Simplified Measurement for SMEs?

Veronika Solilová, Danuše Nerudová

European Financial and Accounting Journal 2015, 10(3):45-61 | DOI: 10.18267/j.efaj.145  

In December 2014, OECD issued a Discussion Draft on Transfer Pricing aspects of cross-border commodity transactions through BEPS action 10, where the adoption of the sixth method in the form of the quoted commodity price and its adjustments were primarily driven as a starting point for transfer pricing purpose. In this paper the analysis of the proposed sixth method and the experience with the sixth method in Argentina were used for the consideration whether this method can be used as simplified measurement for SMEs. SMEs are facing tax obstacles mainly in the area of the international taxation which impede in cross border transactions and internationalization...