Compliance Costs of Corporate Income Taxation in Singapore

This study is the second in a series of studies investigating tax compliance costs incurred by public-listed companies. We found evidence of a size effect which is a predominant finding of similar studies. The size effect was more pronounced when absolute measures of costs were used than when a relative measure, cost/sales turnover, was used. Additional evidence was found of limited success relating to the IRAS's moves to simplify the tax system. Specifically, only large companies with sales turnover exceeding $500m benefited and considerably reduced their overall compliance costs. Most of the decrease was a result of the computational component of compliance costs. This resulted in the gap in absolute costs narrowing between Group 3 and any of the other categories of companies. There was also greater reliance on external professionals, the smaller the company. Views elicited indicate that more could be done to increase accessibility to IRAS publications for Group 1 and Group 2 companies.     

Examining the impact of the attractiveness of alternatives on customers’ perceptions of price tolerance: Moderation and mediation analyses

The current literature provides mixed support for the positive influence of competitors on customers’ perceptions of price tolerance (Herrmann et al, Psychology & Marketing, 2004 21(7), 533–551). This paper examines a number of mediators and moderators of this relationship, such as positive switching barriers, negative switching barriers and customer satisfaction. A total of 162 valid responses was collected from the financial brokerage context by means of a random sample. The data were analysed using the Partial-least square (PLS) approach to structural equation modelling. The findings show that customers’ satisfaction with the service provider partially mediates the positive effect of alternatives on price tolerance. Negative, not positive, switching barriers were found to weaken the effect on price tolerance of the attractiveness of alternatives.     

Introducing XBRL through a financial statement analysis project

In this project, we introduce business and accounting students to the application of eXtensible Business Reporting Language (XBRL) through the use of interactive data. Students study the basic concepts and potential benefits of interactive data and XBRL. Students learn to extract the financial reports of two companies in the same industry. Then, using traditional financial analysis techniques (ratio analysis) students can compare the performance of these companies. Thus, the project accomplishes two important objectives: it introduces students to the benefits and features of XBRL-tagged financial reporting and interactive data, and it shows how this medium can be used to facilitate the analysis of financial statements. The project uses free, publicly available interactive data tools to accomplish these objectives.This project is appropriate for any level of financial accounting course in which students use public company financial statements to generate financial ratios and conduct analysis on them. We aim the project at MBA-type introductory accounting courses. In addition, we show how it can easily be expanded to be applied to higher level financial statement analysis courses, both at the undergraduate and graduate levels. The project provides some background into how XBRL-tagged financial reporting is generated, while the main focus is on application of interactive data and not the technology itself. Since XBRL is now mandated by the US Securities and Exchange Commission (SEC) for most reporting entities, it is critical for today’s business students to be familiar with this method of communicating financial information.     

Is the US Dollar a Suitable Anchor for the Newly Proposed GCC Currency?

Responses of inflation and non‐oil output growth from the Gulf Cooperation Council (GCC) countries to monetary policy shocks from the United States (US) were estimated to determine whether there is evidence to support the US dollar as the anchor for the proposed unified currency. A structural vector autoregression identified with short‐run restrictions was employed for each country with Fed funds rate as the US monetary policy instrument, non‐oil output growth and inflation. The main results suggest that for inflation, the GCC countries show synchronised responses to monetary policy shocks from the US which are similar to inflation in the US, and for non‐oil output growth, there is no clear indication that US monetary policy can be as effective for the GCC countries as it is domestically. Consequently, importing US monetary policy via a dollar peg may guarantee only stable inflation for the GCC countries – not necessarily stable non‐oil output growth. If the non‐oil output response is made conscientiously – and there are concerns over the dollar’s ability to perform its role as a store of value – a basket peg with both the US dollar and the euro may be a sound alternative as confirmed by the variance decomposition analysis of our augmented SVAR with a proxy for the European short‐term interest rate.     

Factors influencing strategic alliance outcomes in a manufacturing supply chain: Role of alliance motives,interdependence, asset specificity and relational capital

Integration of various theories is essential to completely understand and explain strategic alliances in a supply chain. The purpose of this paper is to develop a framework by integrating the features of transaction cost theory, resource-based theory, contingency theory, social exchange theory, and Kelley's personal relationship theory and test the framework through empirical research. The present study addresses the impact of strategic alliance motives, environment, asset specificity, perception of opportunistic behavior, interdependence between supply chain partners, and relational capital on strategic alliance outcomes. Besides, the study has also tested the role of relational capital as a central mediating construct. A sample of 2156 companies representing different industries in manufacturing in Malaysia was selected for the distribution of questionnaire. We tested the structural model using structural equation modeling (SEM). Based on the results, we conclude the following significant relationships: (1) strategic alliance motives and perception of opportunistic behavior on interdependence and relational capital, (2) interdependence on relational capital, (3) environment on strategic alliance motives, (4) relational capital on strategic alliance outcomes, and (4) the mediating role of relational capital. The current study adds significantly to the body of knowledge on strategic alliances and can help managers identify factors that influence the success of strategic alliances and provide a proper direction to develop robust and effective collaborative relationships between supply chain partners.     

Nonparametric analysis of financial time series by the Kernel methodology

This paper aims to study, in the most recent historical time period, the efficiency of the Paris Stock Exchange market. We test its weak form while analysing the stock exchange returns series by nonparametric methods, using kernel methodology in particular. In doing so, our approach extends the traditional view treating the observed cyclical fluctuations on this market.     

Strategic interaction and aggregate incentives

We consider a model of interdependent efforts, with linear interaction and lower bound on effort. Our setting encompasses asymmetric interaction and heterogeneous agents’ characteristics. We examine the impact of a rise of cross-effects on aggregate efforts. We show that the sign of the comparative static effects is related to a condition of balancedness of the interaction. Moreover, we point out that asymmetry and heterogeneous characteristics are sources of non-monotonic variation of aggregate efforts.