5 research outputs found
Towards an organisational economic approach in management accounting and management control
Recommended from our members
Modelling the links between tax and financial reporting: a longitudinal examination of norway over 30 years up to IFRS adoption
Abstract The operational links between tax and financial reporting vary on a continuum from country to country and from period to period. We propose a model for how the links vary over time in developed Western countries. This takes account of competing purposes for accounting, and the mutual reactions of taxation and financial reporting authorities. We illustrate the model using the case of Norway over a 30-year period up to the adoption of IFRS. This has the incidental benefit of analysing the operational links for Norway, which has not been done systematically before, at three dates. We also put Norway into the context of four other countries by adopting and somewhat enhancing existing methodology. We show that Norway has moved from a ‘continental’ position to one that exceeds the disconnection of tax from financial reporting found in the USA or the UK. We raise several research questions related to the generalisability of our model.
The Relationship Between Bankruptcy Risk and Growth for Non-Listed Firms
We investigate the relationship between bankruptcy risk and expected future sales growth for Norwegian non-listed firms for the period 1988-2007. We find that firms with high bankruptcy risk also have high expected future growth. Financial ratios characterizing firms with high bankruptcy risk also characterize firms with high future expected growth. Small firms, firms with low levels of equity and retained earnings, firms with low profitability and low levels of sales per unit of capital, have all higher expected future growth rates than other firms. These findings suggest a tradeoff between the upside potential of high growth and the downside risk of bankruptcy