Modus operandi of transnational transfer pricing for window dressing

A goal of transfer pricing may be to maximize after tax revenue by setting transfer prices that reduce the total tax paid. ＂Transfer pricing＂ is the pricing of products or services provided by one division to other division of the same corporate entity. Most of the corporate entities are using the method of ＂Window dressing＂, which is a technique used in preparation of financial statements of corporate entities. A transnational corporation is any enterprise that undertakes Foreign Direct Investment （FDI）, owns or controls income gathering assets in more than one country, produces goods or services outsides its country of origin, or engages in international production. Profitability of the transnational corporate entities is being manipulated by the technique of transfer pricing. Abuse of transfer prices is a key tool used by the corporate entities to think that they have virtually no profit; hence, they shouldn＇t pay any taxes. India needs to realize the fundamental need for co-operation among tax administrations in order to remove the obstacles that international double taxation presents to the free movement of goods, services and capital between various countries. In this context, one needs to consider that transactions among associated enterprises may take place under different conditions from those taking place among independent enterprises, while enforcing the act of transfer price mechanism. This paper focuses on transfer pricing and its implications in transnational transactions.     

Association Between Independent Auditor Fees and Firm Value： A Study of Brazilian Public Companies

This article investigates the relationship between fees for audit and non-audit services with Tobin＇s Q. Using a sample of Brazilian public companies in the period from 2009 to 2011, we estimate the association between Tobin＇s Q and the auditors＇ remuneration scaled by total assets. Additionally, to strengthen the conclusions, we present a second model with the remuneration of the auditors in absolute terms. The results suggest a significant relationship between Tobin＇s Q and audit and non-audit fees, positive and negative, respectively. Specifically, increases in audit fees and non-audit fees respectively increase and decrease the Tobin＇s Q of the audited company. The results of this study have important implications for those interested in good corporate governance practices. Managers and board members concerned with value carefully evaluate the remuneration and nature of services creation, when engaging independent auditors, should provided.     

Role of supply chain management in target costing

Standard costing is used as a control for product costing. But with life cycle becoming shorter, costing should be done at the design and development stage of a product. This is achieved through target costing.The implementation of target costing and target pricing is done with the ultimate purpose of cost reduction, cost understanding, continuous improvement, competitiveness, early purchasing and supplier involvement, and improved design and accountability by manufacturers. The study explores the participation of the purchasing and supply chain management＇s role in target costing and target pricing process. Supply management plays an active role in monitoring the ongoing cost and performance of suppliers during the early stages of product development. Implementation of target costing and target pricing in various organizations are also explored. Leading Japanese manufacturers have used target costing and target pricing systems to their advantage and the paper also examines the adaptation of the Western companies to these proactive cost management techniques to improve their product development processes.     

Intellectual capital and value creation in the production and assembly of vehicles and auto-parts sector in Brazil： A panel data analysis

This work investigates the relationship between intellectual capital and value creation in the sector of production and assembly of vehicles and auto-parts in Brazil. Through the access of the database from the annual industrial research conducted by the Brazilian Institute of Geography and Statistics, we gathered 865 observations, from 2000 to 2006, of public and private Brazilian companies with more than 100 employees. The database allows the estimate of relevant aggregated variables such as national accounts, gross domestic product, intermediate consumption, as well as propitiates a sectorial study of business strategies and performance, including value added by individual companies. In particular, in this study we use data on variables associated to intellectual capital. To achieve the goal of the study, we consider intellectual capital as defined by Pulic （2000, 2002）, including human capital and structural capital. For the analysis of business performance, we used Pulic＇s VAIC （Value Added Intellectual Cofficient） index as a measure of efficiency of the employed financial and intellectual capital. Regression models were run to verify the relationship among the efficiency in the use of intellectual capital and the profitability of Brazilian companies. The gross income, calculated as before selling, general and administrative expenses, depreciation expenses, amortization and interest expenses, was used as measure of the flows of value creation and the profitability was measured by the gross income to the total assets of the companies. Considering the constructs defined by Pulic （2000, 2002）, we tested, for the Brazilian sector of Production and Assembly of Vehicles and Auto-parts, the following hypotheses： （l） there is a positive relationship between value creation and intellectual capital, （2） there is a positive relationship between value creation and stock of intellectual capital, （3） there is a positive relationship between value creation and efficiency of the employed capital, （4） there is a positive relationship between value creation and efficiency of the human capital, （5） there is a positive relationship between value creation and efficiency of the structural capital. The results of the study, obtained through panel data analysis and through the use static and dynamic models, support the hypotheses that the intellectual capital of the companies, in its flow and stock dimensions, is positively and significantly related to value creation.     

Analysis of the Dominant Features of Realistic Novel Through Oliver Twist by Charles Dickens

Starting with the historical background of Realistic period,this paper analyzes the dominant features of Oliver Twist through Dickens favorite subject matters. After summarizing the writing techniques,we get the realists＇ limitation and achievements.     

Development of China＇s Accounting Standards： Its Establishment and Development Trend

1. The Needs for Accounting Standards Development In 1980s, it was the searching stage for accounting standards. It was recognized that accounting standards cannot be isolated from business environment. China＇s accounting standards are basically constituted by the elements of recognition, measurement and presentation of accounting information as required by Ministry of Finance. Before 1978, accounting system reform was only carried out between complexity and briefness, so reporting formats and accounting framework were retained. Thereafter, the 3^rd plenary session of the 14th Communist Party of China National Congress concluded the economic reform in socialist market economy. Central government put forward a state policy on openness and mainland economic enlivenment. One of the major priorities was to attract foreign capitals and allowed the formation of China-foreign joint ventures. At that moment, China＇s accounting system was based on a single ownership methodology, which was a state-monopolized revenue and expenditure. As foreign transactions were not properly recorded in the financial statements, the information integrity was doubtful in reflecting the true figures of inputs and outputs. In addition, foreign investors could not even understand the reporting systems. It led to confusion that Ministry of Finance＇s approval on the shareholding transaction was unfair. As usual in western accounting standards, foreign shareholding should be regarded as equity and exhibited in balance sheet, which should be audited by independent professional accountants. As a result, the Chinese accounting system was alleged as opaque and required to reform in accordance with international accounting conventions. Otherwise, the foreign shareholding was unable to be translated into the investors＇ home countries.     

The Role of Museum in Evaluating Artworks——Rethinking About Art Issues

I have always been interesting in almost all the aspects about museum, like traditional Chinese painting, folk art, which is extremely different from west. However, I have transferred my focus to some more general questions in the other day, such as： what＇s the difference between Andy Warhol＇s Brillo box in museum and a soapbox in daily life？ Could we put a piece of floating wood into museum and call it artwork？ What grants/gives these things right/privilege entering into museum and being artworks？ What role does museum play in art＇s evaluation？     

Corporate governance and financing decisions by Saudi companies

This paper aims to contribute to the corporate governance literature in emerging economies by examining the effect of some corporate governance mechanisms on financing decisions in Saudi Arabian listed companies. A multiple regression model is used to examine the association between financing decisions and corporate governance mechanisms for a sample of 37 listed Saudi companies. In particular, we examine the effect of board size, ownership concentration and corporate governance reporting on the debt-to-equity ratio. Corporate governance reporting is measured by the content analysis approach. After controlling for companies＇ profitability and their growth opportunities, we found that both board size and ownership concentration are positively associated with debt-to-equity ratio. We limit our analysis to a small sample of firms that use the internet to communicate corporate governance information between October 2005 and January 2006. The findings suggest that managers are likely to choose higher financial leverage when they have stronger corporate governance （large number of directors on the board and higher ownership concentration）. However, we did not find any statistical association between corporate governance disclosure and debt-to-equity ratio. This suggests that firm＇s asymmetric information is not an important driver of the financing decision of Saudi Arabian companies. This might be due to the nature of the Saudi business environment. We strongly believe that this paper provides a novel contribution to the existing literature as we are the first to examine this issue in Saudi Arabia.     

Does an Auditor＇s Within-Industry Market Share Still Capture Auditor Industry Expertise in a Mandatory Audit Partner Rotation Regime？

Prior studies commonly use an auditor＇s market share in an industry as a proxy for auditor industry expertise and find that audit quality is positively related to an audit partner＇s within-industry market share in a voluntary audit partner rotation regime where the length of the client-partner relationship is not limited. Mandatory audit partner rotation, however, limits the length of the client-partner relationship and can artificially increase or decrease the market shares of incoming and departing partners, thus making the audit partner＇s within-industry market share an unreliable proxy for auditor industry expertise. Using a sample of banks in Taiwan, we find that audit quality is positively related to an audit partner＇s within-industry market share in the voluntary audit partner rotation regime. However, such a positive relation disappears in the mandatory audit partner rotation regime. Thus, we conclude that mandatory audit partner rotation decouples the link between an audit partner＇s within-industry market share and auditor industry expertise and caution researchers against using an audit partner＇s within-industry market share as a proxy for auditor industry expertise in a mandatory audit partner rotation regime.     

英文摘要

Is There Any Auditor＇s Trust to the Clients in Audit Zou Jing Xia Qing Zhou Sheng （Zhongnan University of Economics and Law; Military Economics Academy,Wuhan, Hubei 430073） Abstract： Professional skepticism is an essential important accomplishment for the auditor who is engaged in auditing work. Is there any auditor＇s trust to the clients in the the field of audit which is in contrast to the Professional skepticism？ Using data of Chinese A-share listed companies from 2009 to 2011, this paper explor the relation between the intensity index of trust and the audit fees, and then explains whether there is auditor＇s trust to the clients in the auditing activities. On the whole,the result of study reveals that there is a significant negative correlation between the auditor＇s index of rational trust and the audit fees, but there is no significant positive association between the auditor＇s index of individual trust and the audit fees.Thus it can be thought that, there exists auditor＇s trust to the clients stemming from the rationality in the auditing activities, but there is no evidence showing that the auditor has individual turst to the clients in the audit because of the long familarity with the clients. Keywords： Auditor Trust Audit fees     

A system dynamics model for the assessment of the effects of advertising and sales promotion on profitability

Advertising and sales promotion have significant impact on raising customer awareness. They are tools by which customers become acquainted with new and innovative products and services of the companies. Despite the importance of these tools in increasing sales, it is not easy to evaluate their effect on sales. One of the problems confronted by the marketing managers is the determination of a clear relationship between the effectiveness of advertising and sales promotion on profitability. In this article, considering the relationship between these tools and brand equity, we have attempted to determine the relationship between effectiveness of these two factors and profitability. Next, a system dynamics model for representing the effects of marketing communication tools on company profitability is offered. Finally, using the data from a corporation and the numeric values related to each of the elements in the model, an attempt has been made to determine a number representing the magnitude of the effect of advertising and sales promotion on the corporation＇s revenue and profitability and to draw the respective curves related to the effects of these two factors.     

The Changes in World Oil Prices, Monetary Factors, and Foreign Index Toward Composite Index Movement： Indonesian Case for the Period of 2005-2011

Capital market is one of the drivers of the economy through the formation of capital investor excess as well as an indicator of a country＇s economy. Movement of stock price index is often influenced by many factors, derived from the company＇s performance, monetary factor, and changes in world oil prices. This study highlights the problem in world oil prices due to political turmoil in the Middle East. The samples are taken from the Jakarta Composite Stock Price Index （JCI）, oil prices, Indonesian inflation rate, Certificate of Bank Indonesia＇s （CBI） rate, and the reserve assets, during the period from January 2005 to December 2011 （84 months）. Using the data published by the Bank of Indonesia, reports of the Central Bureau of Statistics （Biro Pusat Statistik, BPS）, and other relevant sources, the data analyzed through the Eviews 7.1. The main objective of this study is to examine the effect of oil prices, foreign stock price index, and monetary variables （inflation rate, CBI rate, country＇s foreign reserves, and others） toward the JCI analyzed through the error correction model （ECM）. Hypothesis testing with the F-test for the 95% confidence level indicates that the oil price, exchange rate （Indonesian Rupiah （IDR）/United States Dollar （USD））, CBI rate, foreign exchange reserves, the Dow Jones Index, and the Taiwan stock index, both simultaneously as well as partially have a significant influence on the JCI.     

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Our Ten Years
When we contact with an increasing number of Chinese private entrepreneurs, communicate in depth with them, and walk into their hearts, we find their real living conditions. At that time, the halo which on the entrepreneurs＇ head is fading, and their frustration, fear, grief and struggle replace the halo.     

Stock Repurchase and the Role of Signaling： A Comparative Analysis between U.S. and China

This paper compares different methods used for stock repurchase and examines the role of signaling in the U.S. and China＇s capital markets. We find that the ways to buyback stocks are very different in the two countries. Most U.S. stocks are repurchased through open market and the signals sent to the market through open market repurchase are getting weaker. Even though stock repurchases are at their early stage in the Chinese stock market and the dominated way to buyback is through a negotiated repurchase agreement for non-floating shares, the power of signaling seems much stronger. Examining stock prices pre- and post-repurchase, we find that stock repurchase records an average abnormal return of 3.42% on the announcement date and 3.24% on the date of actual renurchase.     

From risk society to audit society

Contrary to what is sometimes claimed, the 2008 banking crisis occurred in an ultra-regulated environment. Legislative and regulatory financial-security regimes have in fact multiplied in recent years. The economic crisis is accelerating the transition of the risk society towards the audit society. But the G20 （Group of Twenty） declarations in Washington and London also reveal a managerial utopia： the march towards a society of confidence or harmony that would make controls superfluous. In this context, the article seeks to call upon philosophical, sociological and managerial references to risk, from Foucault to Power by way of Beck, Giddens ＆ Ewald, to shed light on the official declarations of the leaders of the world＇s main economies. The documentary corpus examined includes all the G20 works published between November 8, 2008 （preparation for the Washington Summit） and April 2, 2009 （conclusions of the London Summit）. The political philosophy underlying the G20＇s works remains fundamentally liberal, even though saving the worldwide market economy involves established security systems as well as self-control and control of others. In the end, the leaders do not decide between reinforcing the existing tools and inventing new systems. The updating of security technologies is meant to serve the preservation of the capitalist managerial utopia. This gives rise to a new variant of Beck＇s risk-society paradigm, too often confined to environmental threats alone, in three phases： （1） The crisis is a consequence of financial modernity and in particular of the inefficiency of regulation in the face of growing sophistication in techniques; （2） To restore confidence, the states and international institutions want, paradoxically, both to reinforce regulation and promote flexibility; （3） Thereupon, flexi-security controlled by worldwide economic governance characterizes the second financial modernity.     

Analysis of the Formation of Dystopian Thouzht in Brave New World

Today Brave New World has undoubtedly become one of the perts and scholars of different fields. Research on Dystopia＇s contents and causes of its formation. With the related theories of studies,this paper aims formation of Dystopian thought,and discusses the relations between the book tion,interests and living environment. classic novels in western literary history and is widely studied by ex- its significance is rather mature,but there are few discussions on the to give an interpretation to the novel. The article tries to interpret the and contemporary social background,author＇s knowledge reserve,educa-     

Ethics and the Financial and Budgetary Discipline in the Ministry of Defence

This article deals with the relation between ethics and financial and budgetary discipline during economic and social recession in the Czech Republic. We find causes of economic and social recession in the Czech Republic in the loss of democratic and human values. Czech Republic was ranked the 57th place in the Corruption Perceptions index 2013 out of the 177 countries assessed, which is the same result achieved by Bahrain, Croatia, and Namibia. Among the 31 European Union （EU） member states and Norway, Switzerland, and Iceland, the Czech Republic is on the 25th site. Market as well as public sector and public finances should follow unwritten rules of ethics and ethical behavior. Such rules should be followed especially by politicians, officials, soldiers, and businessmen. Do we need ethics in present time？ How is the role of the code of ethics in increasing financial and budgetary discipline in the defence sector？ Is it possible to measure efficiency of the code of ethics for financial and budgetary discipline？ We explain the importance of codes of ethics and formulate essential elements that each code of ethics must contain. Next, we deal with the main rules of both financial and budgetary disciplines. Furthermore, this article offers a comparison of several codes of ethics and describes the main problems in our implementation. In the end, we introduce our draft of Code of Ethics for Economic Service Officer in the Ministry of Defence and talk about possible influences of these codes on the quality of employee＇s performance.     

Research on the Elements of Firm＇s IS Absorptive Capacity

In this paper, we explore the capacity during the process of a firm＇s information implementation from knowledge management perspective, based on a firm＇s level construct. system adoption and According to the dimensions of absorptive capacity proposed by Zahra and George, we point out that the concept of IS absorptive capacity, analyze and summarize the elements of potential absorptive capacity and realized We use data from two manufacturing organizations, analyze two firm＇s realities of IS study indicates differing antecedents may have differing effects on potential absorptive sorptive capacity.     

Control and its role in the process of ensuring knowledge continuity

With the commencement of the 21st century, the information age, knowledge economy and integration of information and knowledge among production factors, organizations show increasing interest in knowledge management. Managers are trying not only to preserve knowledge and transfer it efficiently within their organization, but also to ensure that it is not lost when a knowledge employee leaves the organization. Therefore, it is indispensable for organizations to monitor, record, transfer and preserve their knowledge. In order to ensure efficient preservation of knowledge by the organization, it is essential to integrate the area of the so-called knowledge continuity into the general management and ensure its maximum value. The goal of the article is to identify the role of control in the transformation process and its impact on ensuring knowledge continuity within the organization. A partial goal lies in identifying output quality control by means of productivity One of the conclusions of the article is that in today＇s economic situation, ignoring the existence of knowledge continuity could result in a crisis of management of knowledge and its loss.