"An Attempt At Measuring The Fiscal Influence Over Accounting Of Romanian Listed Companies "

Abstract

In this paper we attempt to quantify the fiscal influence over accounting on de facto level. Empirical analysis is being performed on a sample of 433 listed companies, 3 years observation period. In the analysis 'accounting' and 'taxation' measures are designed based on previous literature, being further enhanced for theoretical considerations. The model we use is defined in a dynamic fashion since we believe this form captures the best the economic content of the accounting-taxation relationship. We contribute to the literature in two ways. The measurement technique is to our knowledge a premier, since this model has never been applied in previous tax research in accounting. Furthermore, this is the first empirical tax research paper in the Romanian accounting literature. We believe this issue is important, particularly for emerging countries, where the state has by tradition a strong implication in the economy, and therefore is highly interested in accounting figures. The topicality of the study is beyond question: during crisis the role of the state intensifies, with the appropriate tax(ation) effect, which could be detected in the accounting numbers by our model. Consequently, the model could be useful for accounting standard setters, fiscal authorities, auditors as well as users.