Cost and Benefit of Tax Reduction: Evidence from China’s Pension Fee Collection
Issue:
Volume 9, Issue 1, January 2021
Pages:
1-7
Received:
22 December 2020
Accepted:
5 January 2021
Published:
12 January 2021
Abstract: Tax reduction policies often implies a trade-off of government between revenue loss and economic boost, which although relates to social governance and economic development. However, the existing literature rather focuses on the economic impacts than the direct pecuniary costs and benefits. To fill the gap in the literature, comparing the direct pecuniary cost and benefit is important for policymaking. Thus, this study aims to evidence the causal impact of potential tax reduction on local revenue loss and economic gain via a case study of China’s pension fee. To address the simultaneity between its collection and the corresponding labour output, this study takes the retiree in the prior period as the instrumental variable. Drawing on a provincial panel data, the two-stage-least-square regressions show that by lowering 1 percentage point pension fee rate (PFR), local pension revenue will decrease by 6.3 percent or 2.1 billion yuan, which indeed generates certain revenue distress; meanwhile, it instead increases employment and wages and leads to growth in the local GDP by 0.84 percent or 113.6 billion yuan, which far exceeds the revenue loss and generates net economic gain. Heterogeneity further shows that this economic benefit is more significant in the less developed areas. Accordingly, it is suggested that tax-cut policy can be a beneficial device to balance the inter-regional differences in economic development.
Abstract: Tax reduction policies often implies a trade-off of government between revenue loss and economic boost, which although relates to social governance and economic development. However, the existing literature rather focuses on the economic impacts than the direct pecuniary costs and benefits. To fill the gap in the literature, comparing the direct pe...
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Fund Size and Performance of Unit Trust Funds in Kenya
Anderson Namu Nthimba,
Ambrose Jagongo,
Lucy Wamugo
Issue:
Volume 9, Issue 1, January 2021
Pages:
8-15
Received:
18 October 2020
Accepted:
7 November 2020
Published:
10 February 2021
Abstract: When investors take part in any investment, the main objective is to increase their wealth. This is achieved when share prices increase. The performance of unit trusts in Kenya has however been poor compared to the counterparts in the rest of the world. The poor performance is a discouragement to individual and corporate investors in addition to affecting the realisation of financial stability according to the Kenya vision 2030. Empirical literature from developed and emerging markets posits that fund size explain the performance of unit trust funds. This study therefore investigated the effects of fund size on the performance of unit trust funds in Kenya. The study adopted an explanatory research design and positivism philosophy. The target population was 16 unit trust firms in Kenya as at the end of the year 2017. The study used a census approach. Secondary data was collected from the audited financial statement of respective unit trusts for the period 2005 to 2017 using a data collection schedule. The study established that fund size has significant positive effect on performance in all funds. The study concluded that increase in fund size increases performance. The study recommends that capital market authority should monitor performance of unit trusts constantly and in addition develop merger policies to encourage small unit trust to merge in order to take advantage of economies of scale.
Abstract: When investors take part in any investment, the main objective is to increase their wealth. This is achieved when share prices increase. The performance of unit trusts in Kenya has however been poor compared to the counterparts in the rest of the world. The poor performance is a discouragement to individual and corporate investors in addition to af...
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Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment
Sani Alfred Ilemona,
Sunday Nwite
Issue:
Volume 9, Issue 1, January 2021
Pages:
16-22
Received:
24 December 2020
Accepted:
16 January 2021
Published:
23 February 2021
Abstract: The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.
Abstract: The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through q...
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