Escolhas Contábeis na Demonstração dos Fluxos de Caixa: Análise em Empresas da América Latina

ABSTRACTObjective: this study analyzed which characteristics of companies may be associated with accounting choices at DFC in 565 publicly traded companies in Latin American countries, from 2012 to 2016.Method: this study promotes analysis by estimating twelve logistic regression models and using panel data.Originality / Relevance: the study of DFC's accounting choices provides information about changes in net assets, financial structure and the ability of companies to modify resources.Results: The results show that the size of the companies, the negative cash flow and the sector may be related to the choices of interest and dividends received, and dividends paid, indicating that the results for the variables in Brazil are similar to those of Chile and Peru, even in different institutional settings.Theoretical / Methodological contributions: this study contributes by providing an overview of how financial and non-financial companies in different countries show cash flows, especially with regard to DFC's comparability and accounting choices, which can result in increasing operating cash flow. In addition, the study provides evidence of an association between company characteristics and accounting choices at DFC, showing differences in the countries surveyed, in terms of cash flow interests, and, contrary to the objective of regulatory bodies, regarding the standardization of accounting procedures.

THE EFFECT OF TAX ACCOUNTING CHOICES, DEBT POLICIES, AND OWNERSHIP CHARACTERISTICS OF TAX AGGRESSIVE IN MANUFACTURING COMPANIES ON THE IDX 2014-2018

This study considers agreeing and obtaining evidence about the Difference between Tax Accounting Choices, debt policy and Characteristics of Ownership of Aggressive Taxes. This research was conducted at manufacturing companies published on the Indonesia Stock Exchange (IDX) in 2014-2018. This type of research is quantitative research that is associative in nature. This research was conducted on 136 manufacturing companies listed on the Indonesia Stock Exchange (IDX) using purposive sampling technique in determining research samples. Then obtained as many as 15 (fiveteen) manufacturing companies used as research samples. With observations for 5 (five) years, so the total observations in this study were 75 (seventy-five) audited financial statement data. The analysis technique used is descriptive statistical tests, classical assumptions test, and hypothesis testing. The results of this study indicate that the partial variable tax accounting choices do not affect the tax aggressiveness, this shows that the method of depreciation of the straight line or straight line does not affect the tax aggressiveness decision making. Debt policy against tax aggressiveness, this refers to the fact that questioning the company using funds from the company will reduce the amount of money that will incur a small interest fee that will occur in an aggressive tax action. Ownership characteristics do not affect the tax aggressiveness, this shows that the company owned by family or non-family does not affect the decision in tax aggressiveness. And simultaneously the tax accounting choice variable, debt policy and ownership characteristics affect the tax aggressiveness. Keywords: Tax Accounting Choices, Debt Policy, Characteristics of Ownership, Aggressive Taxes

Incentives for accounting choices in Cash Flows Statements

ABSTRACT This study sought to identify incentives that influence the accounting choices for classifying interest and dividends received or paid in Cash Flow Statements (CFSs), in the period from 2008 to 2014, in non-financial companies of the Brazilian capital market. The hypotheses refer to the effect of the choice of classification for interest and dividends over cash flow from operations (CFO), according to indebtedness, profitability, size, negative CFO, sector, and auditor. This article seeks to contribute by providing evidence on the accounting choices for classification in CFSs, considering the lack of consensus in the results of studies in the Brazilian capital market and helping to better understand these accounting choices and the incentives behind them. A correct understanding of the information in CFSs is fundamental for them to be useful to their users. The existence of accounting choices for classification in CFSs may directly affect this understanding and, consequently, their usefulness. The results help in better understanding the discretion contained in CFSs, enabling the correct use of their information. They can also generate evidence for regulatory bodies to rethink their accounting rules and for academia to direct future research. Two panel data models were developed, using a sample of 352 companies, 2,290 analyzed reports, and 3,764 data items. The results indicate that companies with a greater level of debt, profitability, and size make their accounting choices in order to report higher CFO in the CFS. The evidence obtained reinforces the international findings and adds new analyses in the Brazilian context, contributing to the development of accounting choice theory.

Strategic Management Forecasts and Accounting Choices: A Case of Employee Downsizing in Japan

ABSTRACT Prior research shows that managers make income-decreasing accounting choices around labor negotiations and predicts that managers disclose bad news during labor negotiations. This study extends the literature by investigating whether disclosure and financial statement reporting practices are consistent during employee downsizing years. Using data from Japanese domestic firms during the period 2002–2016, we find that beginning-of-period management forecasts (i.e., disclosure) are positively associated with during-period negative stock returns for downsizing firms but not for non-downsizing firms. Also, downsizing firms report more conservative earnings at the end of the fiscal year (i.e., financial statement reporting). Our supplementary analyses show no difference in an association between management forecast errors and stock returns between downsizing and non-downsizing firms with during-period negative stock returns, nor in an association between discretionary accruals and employee downsizing. These results suggest that managers strategically inform firms' prospects during employee downsizing years. JEL Classifications: G34; J51; M41. Data Availability: Data are available from the public sources cited in the text.

The impact of labor unions on corporate tax avoidance: evidence from Korea

This study examines the effect of labor unions on corporate tax avoidance activities. Labor union is an important stakeholder in terms of corporate governance; thus, managers may engage in certain accounting choices that reflect union members’ position to improve the relation with labor union. This paper empirically investigates whether managers engage in tax avoidance activities to secure financial resources for workers’ pay when the negotiation power of labor unions is higher. The empirical analysis is based on a sample of firms listed in the Korean stock market from 2001 to 2008. The authors find that companies, where labor unions are organized, have a significantly higher level of tax avoidance activities. Also, the authors attempt to examine the effect of labor unions’ bargaining power on tax avoidance. While the union membership ratio is not significantly related to tax avoidance, labor unions that belong to upper-level labor organizations significantly affect the increasing tax avoidance activity, on average. Moreover, companies that join an aggressive labor organization (‘Minju’ Federation) show a significantly higher level of tax avoidance activity, compared to those joining a moderate labor organization (‘Hanguk’ Federation). Furthermore, the authors show that such an effect of labor unions on tax avoidance is significant for companies, which are not affiliated with large business groups (‘chaebols’). This result suggests that chaebol group management is not under pressure to negotiate with union members due to higher reputation costs. The findings of this paper offer academic and practical implications that capital market participants need to understand labor unions’ effect on management’s accounting choices.