“Post‐Truth,” “Alternative Facts” and “Fakenomics”

South African companies are accused of hoarding profits to accumulate large amounts of “idle” cash, as well as of being the perpetrators of massive illegal capital flight. This paper argues that much of the claimed corporate cash is either offshore or belongs to banks. It reminds that bank deposits increase when companies borrow, not when they retain profits. It shows, too, that measures of massive capital flight actually reflect data errors. Exaggerating, through faulty methodology the extent to which companies have cash or may be involved in illegal capital flight is unhelpful. It exacerbates already‐fraught government‐business relations, and complicates the search for solutions to South Africa's economic problems.     

Discussion of “The Psychology of Billing”

Hansen, Jackson, Schaefer, and Stewart (2018) examine the effects of three contextual features on tax professionals’ billing decisions in a case involving issue‐specific tax research. In this discussion, we present a tax fee model. In contrast to determining a bill, our model views tax fees in a more comprehensive perspective. We subsequently use this model to discuss the design choices and limitations of their study and to provide suggestions for future research.     

Towards a framework for not-for-profit accounting*

Abstract. This paper analyses the theoretical explanations for the not-for-profit (nfp ) organization phenomenon, distinguishes between those organizations and profit entities, clusters NFPs on two dimensions, and suggests an accounting framework that is consistent with both the economic nature of NFPs and the nature of the giving decision. Résumé. L'auteur analyse les explications théoriques du phénomène de constitution d'organismes sans but lucratif (OSBL), établit la distinction entire ces organismes et les entreprises à but lucratif, regroupe les OSBL sous deux aspects différents, et suggère une grille comptable adaptée à la nature économique des OSBL ainsi qu'à la teneur du choix philanthropique.     

Towards a social economy, or is it a “third sector”?

Peter Welch and Malcolm Coles, 1994: Towards a Social Economy -Trading for a Social Purpose. London: Fabian Society, Fabian Pamphlet 564, £3.50 paper.

Roger Spear, Aude Leonetti and Alan Thomas, 1994: Third Sector Care: Prospects for Co-operatives and other Small Care Providers. Milton Keynes: Open University.

Perri 6 and Isabel Vidal (eds) 1994: Delivering Welfare: Repositioning Non-profit and Co-operative Action in Western European Welfare States. Barcelona: Centre d'Iniciatives de l'Economia Social.     

Discussion of “Optimal Conservatism with Earnings Manipulation”

In this discussion, I briefly summarize the key features of Bertomeu, Darrough, and Xue's (hereafter BDX) model. I then examine the four key assumptions that BDX employ to arrive at their results: (i) firms contract only on earnings; (ii) conservative earnings are better for contracting; (iii) conservatism motivates upward earnings manipulation; and (iv) conservatism is endogenous. I then briefly conclude.     

Discussion of “Information Asymmetries about Measurement Quality”

This article discusses Glover and Levine (2019). It summarizes Glover and Levine's model, its contributions, and practical implications. It also suggests empirical extensions based on the predictions of the model.     

”Uneven development“

John Allen and Doreen Massey (eds), 1988: The Economy in Question. London: Sage Publications, £8.95 paper.

Doreen Massey and John Allen (eds), 1988: Uneven Re-Development: Cities and Regions in Transition. A Reader. London: Hodder and Stoughton, £7.50 paper.

Kevin Morgan and Andrew Sayer, 1988: Microcircuits of Capital: “Sunrise” Industry and Uneven Development Oxford: Polity Press. £35.00 cloth.     

“Regional questions”

Publications Reviewed:

Royal Town Planning Institute, 1986: Strategic Planning for Regional Potential. A discussion document.

Royal Institution of Chartered Surveyors, 1986: Regional Policy-A Fresh Approach.

Armstrong, H. and Taylor, J. 1987: Regional Policy: The Way Forward. The Employment Institute.

Northern Region Councils Association, 1986: The State of the Northern Region.

South East Economic Development Strategy (SEEDS), 1987: South-South Divide. An exposition of the SEEDS project.     

Discussion of “Corporate Political Connections and Tax Aggressiveness”

Kim and Zhang (2015) study the relation between corporate political connections and tax aggressiveness. In this discussion, I identify and evaluate three main limitations of their paper: the measurement of political connections, the empirical design, and the possible reasons behind the documented results. I build on these small shortcomings to provide suggestions for further contributions in this area of research.