Titlebar

Export bibliographic data
Literature by the same author
plus on the publication server
plus at Google Scholar

 

Costs and Benefits of Accounting Services? : Evidence from Europe

Title data

Bravidor, Marcus ; Loy, Thomas:
Costs and Benefits of Accounting Services? : Evidence from Europe.
2018
Event: VHB/IAAER Annual Accounting Conference 2018 , February 26–27, 2018 , Berlin.
(Conference item: Conference , Paper )

Related URLs

Abstract in another language

We empirically analyze the benefits associated with the costs of accounting-related services in 18 European countries. We use the revenues earned from accounting-related services as an estimate of compliance costs and explore whether the cross-country and temporal variation of these costs is associated with benefits for firms (e.g., in the form of lower corporate tax burdens) and/or the public (e.g., through increased earnings quality). Prior studies focused on audit and non-audit (e.g., tax advisory) fees paid by listed companies. Our dataset also includes SMEs and individuals. Empirical results indicate increased spending on accounting-related services is related to decreasing earnings quality, as measured by accrual-based earnings management and real activities management. However, we find no evidence that companies use discretionary spending to decrease their effective tax rates indicating that accounting services are primarily used to comply with tax laws. Country-level governance mechanisms partially mitigate this relation. Differences in the quality of financial reporting and tax regulation do not alter the benefits from accounting-related services. We attribute these results to an increased demand in accounting advisory services to identify avenues for earnings management and tax planning. Additionally, either the advisory effect of accounting regulation supersedes the effect of audits, which should restrict earnings management, or companies demand accounting services to smooth earnings for tax purposes.

Further data

Item Type: Conference item (Paper)
Refereed: Yes
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Junior Professorship Auditing > Junior Professorship Auditing - Juniorprof. Dr. Thomas Loy
Profile Fields > Emerging Fields > Governance and Responsibility
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Business Administration
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Junior Professorship Auditing
Profile Fields
Profile Fields > Emerging Fields
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 28 Mar 2018 06:15
Last Modified: 23 Nov 2018 09:08
URI: https://eref.uni-bayreuth.de/id/eprint/43160