European Financial and Accounting Journal, 2015 (vol. 10), issue 4

Articles

ETR Development and Analysis: Case from the Czech Republic

Jan Svitlík

European Financial and Accounting Journal 2015, 10(4):5-18 | DOI: 10.18267/j.efaj.146  

The paper investigates the effective corporate tax rate (ETR) in the Czech Republic from 2003 to 2013 from the point of both time-series and cross-sectional analysis. We exploit the access to Bureau van Dijk, Amadeus database to get broad data sample from financial statements. Thus, micro backward-looking approach was applied in the paper. We find clear downward trend in the ETR during the given period and statistically significant correlation between the ETR and statutory corporate tax rate (STR). We also undertake analysis of geographical regions using ZIP codes of the companies and analysis of economic sectors according to NACE of the sample firms....

Deductibility of Provisions under the CCCTB Proposal and Its Effects on Companies: The Case of Poland

Anna Leszczyłowska

European Financial and Accounting Journal 2015, 10(4):19-31 | DOI: 10.18267/j.efaj.147  

The aim of the paper is to empirically examine the scale and the distribution of the tax advantage which emerges when provisions for future liabilities are deductible from taxable earnings, as proposed in the CCCTB concept. The paper concentrates on Poland - a country for which the expected economic effects of this proposal are still controversial and ambiguous. The results are also relevant for other European countries in which provisions are currently treated in a different way for financial and for tax accounting purposes. The analysis is based on the information from financial statements of 250 companies from the period 2007 - 2012. The microsimulation...

Day-of-the-week effect in the Nigerian Stock Market Returns and Volatility: Does the Distributional Assumptions Influence Disappearance?

Osabuohien-Irabor Osarumwense

European Financial and Accounting Journal 2015, 10(4):33-44 | DOI: 10.18267/j.efaj.148  

This study assesses the influence of error distributional assumption on appearance or disappearance of day-of-the-week effects in returns and volatility using the Nigerian stock exchange (NSE-30). The Gaussian, Student-t, and the Generalized error distribution were incorporated in the GARCH (2,1) and EGARCH (2,1) models. Result reveals that day-of-the-week effects are sensitive to error distribution. Our finding also shows that evidence of good or bad news in volatility does not only depend on the asymmetric model but also the choice of the error distribution. Thus, this study will provide adequate knowledge to policy makers, investors and researchers...

The Effect of 2011 Revised Code of Corporate Governance on Pricing Behaviour of Nigerian Auditors

Salau O. Abdulmalik, Ayoib Che Ahmad

European Financial and Accounting Journal 2015, 10(4):45-65 | DOI: 10.18267/j.efaj.149  

The paper examines the extent which risk management committee and corporate governance committee predict audit fees in Nigeria. We employed random panel data (unbalance) regression analysis to establish whether risk management committee and corporate governance committee affect audit fees. We obtained the data used for this study from the annual reports of public listed companies on the Nigerian Stock Exchange for the periods 2008-2013. Our results indicate a positive relationship between establishment of risk management committee and audit fees while the establishment of corporate governance committee has an insignificant relationship with audit fees....