| 1. |
- Dong, Ting, et al.
(författare)
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Voluntary vs. mandatory: the role of auditing in constraining corporate tax avoidance in small private firms
- 2023
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Ingår i: Accounting and Business Research. - : Taylor & Francis (Routledge). - 2159-4260 .- 0001-4788. ; 53:7, s. 723-755
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Tidskriftsartikel (refereegranskat)abstract
- This paper examines whether the status of the financial statement audit, as either voluntary or mandatory, is related to the corporate tax avoidance behaviour of private firms. Using the Swedish audit regime shift in 2010 which removed mandatory audit requirements for small private companies, we find that voluntarily audited firms exhibit a 19% decrease in total income tax burden relative to firms subject to mandatory audit following the regulatory change. This decrease corresponds to an average SEK 15,000 (approximately 1,500 euros) lower tax payment and is driven primarily by increasing conforming tax avoidance. We also find that increasing tax avoidance in voluntarily audited firms occurs, at least partly, due to impaired auditor independence under the voluntary audit regime. Finally, we show that the non-tax costs of tax avoidance restrict these tax-driven reporting changes. Our findings contribute to the literature on auditors' constraining effect on corporate tax avoidance as well as to the debate over the costs and benefits of a mandatory financial statement audit regime.
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| 2. |
- Hellman, Niclas, et al.
(författare)
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Införandet av K3 i koncernredovisningen - vilka blev effekterna?
- 2023
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Ingår i: Balans. - : FAR AB. - 2002-8490 .- 0346-8208. ; , s. 1-4
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Tidskriftsartikel (övrigt vetenskapligt/konstnärligt)abstract
- För cirka tio år sedan fick Sverige för första gången ett heltäckande regelverk för koncernredovisning i icke-noterade företag. I denna artikel redovisar Niclas Hellman, Henrik Nilsson, Milda Tylaite och Derya Vural vilka effekter införandet av K3 i koncernredovisningen haft.
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| 3. |
- Hellman, Niclas, et al.
(författare)
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The Impact of an IFRS for SMEs-Based Standard on Financial Reporting Properties and Cost of Debt Financing: Evidence from Swedish Private Firms
- 2022
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Ingår i: The European Accounting Review. - : Taylor & Francis. - 0963-8180 .- 1468-4497. ; , s. 1-31
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Tidskriftsartikel (refereegranskat)abstract
- In 2014, all larger Swedish private firms were required, at short notice, to adopt a new reporting standard (K3) based on IFRS for SMEs (2009 version). Using this shock to the reporting environment, we study the effects of the new reporting standard on groups' financial reporting properties and cost of debt financing. We find that, following the introduction of K3, private groups exhibit reporting changes consistent with improved accounting quality; their financial statement comparability increases; and their cost of debt declines. Our results suggest that the cost-of-debt decline is related to changes in accounting numbers that are imputed to lending models. Our findings add to the literature on factors shaping private firms' financial reporting and inform the ongoing discussion on accounting regulation for private firms.
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| 4. |
- Hjelström, Tomas, et al.
(författare)
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Executives' Personal Tax Behavior and Corporate Tax Avoidance Consistency
- 2020
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Ingår i: European Accounting Review. - : Taylor & Francis (Routledge): SSH Titles. - 0963-8180 .- 1468-4497. ; 29:3, s. 493-520
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Tidskriftsartikel (refereegranskat)abstract
- We analyze executives' (CEOs, CFOs, and Board Chairpersons) personal tax returns to investigate whether and how their personal tax behavior is associated with the tax avoidance of their firms. We develop various measures of executives' personal tax behavior that are related to their personal risk propensity, ethics, financial incentives, and awareness of tax planning opportunities and risks. Our empirical results show that CEOs' and CFOs' personal tax behavior is related both to nonconforming and conforming corporate tax avoidance. We find no such results for Board Chairpersons.
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| 5. |
- Ivanova, Mariya, N, et al.
(författare)
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Does More Liability Mean More Responsibility? The Effects of Increasing Directors’ Personal Liability in Financial Institutions
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- This paper examines the effects of increasing directors’ personal liability on board composition and outcomes of private financial institutions. We utilize a 2015 regulatory reform in Sweden that imposed a financial penalty of up to five million euro on directors of financial institutions for regulatory violations, thus effectively increasing their personal liability. Our findings show that board composition changes following the reform. The incoming directors are older at the time of their appointment, less experienced, and hold fewer directorships than the outgoing directors, suggesting that personal liability deters expert individuals from serving as directors of financial firms. Consistent with the expectation that directors require additional compensation for greater liability, we document that director compensation is higher after the reform. We also find evidence of lower earnings volatility and higher distance to default, suggesting that more director liability equates to less risk-taking in financial firms. Overall, our findings indicate that director liability provisions have a significant effect on board composition, compensation, and risk-taking in financial institutions.
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| 6. |
- Nilsson, Henrik, et al.
(författare)
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Yesterday is history, tomorrow is a mystery: Directors' and CEOs' prior bankruptcy experiences and the financial risk of their current firms
- 2024
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Ingår i: Journal of Business Finance and Accounting. - : Wiley-Blackwell. - 1468-5957 .- 0306-686X. ; 51:1-2, s. 595-630
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Tidskriftsartikel (refereegranskat)abstract
- Using a large sample of Swedish private firms, we investigate the link between the prior corporate bankruptcy experiences (BEs) of directors and CEOs and the financial risk of their current firms. We find that firms with directors and CEOs previously involved in bankruptcies exhibit more aggressive corporate financial policies, have a higher corporate bankruptcy risk and are subject to a higher cost of debt. Our findings align with an innate characteristics explanation: corporate BEs and current corporate risk-taking reflect personal risk preferences. Furthermore, while we find evidence of income losses for CEOs and directors involved in bankruptcies, such losses are transient, potentially explaining the risk-taking behavior after experiencing bankruptcy. Overall, our results suggest that the presence of individuals with prior BE can be considered a signal of higher financial risk for their firms. This insight is relevant to regulators, lenders and corporate decision-makers. K E Y W O R D S bankruptcy experience, bankruptcy risk, career consequences, cash, cost of debt, executives, leverage, risk-taking
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| 7. |
- Tylaite, Milda, et al.
(författare)
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Auditor assurance and credit institutions: How auditors can contribute to high-quality credit decisions.
- 2020
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Ingår i: Sweden through the crisis. - Stockholm : Stockholm School of Economics Institute for Research. - 9789186797386 ; , s. 149-155
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Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- In this article, Ting Dong, Henrik Nilsson, and Milda Tylaite discuss how auditors can provide value to credit institutions. They specifically point to two factors; the importance of the going concern opinions in credit risk assessments and that more attention should be paid to modified audit opinions that concern internal control weaknesses (ICWs). The authors end by suggesting that a mandatory financial audit requirement for firms that receive government-guaranteed loans should be considered.
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| 8. |
- Tylaite, Milda
(författare)
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Essays on the non-financial determinants of corporate tax planning outcomes
- 2018
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis consists of four empirical papers investigating corporate tax behavior in Sweden."CEO personal and corporate tax behavior consistency" explores whether and how CEO's personal tax preferences relate to corporate tax avoidance outcomes."CFO's role and corporate tax outcome's" investigates whether corporate tax outcomes can be explained by CFO's role as defined in the firm."Corporate tax outcomes and executive turnover: Evidence from Sweden" examines which executive, a CEO or a CFO, is perceived to be primarily responsible for corporate tax outcomes, and what tax outcomes are preferred by corporate boards."Auditors and tax avoidance in micro firms" evaluates how the Swedish regulatory change of 2010 that allowed Swedish micro firms to opt out of audit affected their tax planning behavior.
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