European Financial and Accounting Journal, 2021 (vol. 16), issue 2

Articles

Human Freedom and Effective Corporate Income Tax Rates of CEE Listed Companies

Marina Purina

European Financial and Accounting Journal 2021, 16(2):05-28 | DOI: 10.18267/j.efaj.253  

This paper analyses firm-specific and country-specific factors that have an impact on the effective corporate income tax rates (ETR) for CEE listed companies based on data obtained from the BvD Amadeus database. Business factors analysed in this research are the company size, leverage, capital and inventory intensity, and return on assets. Concerning the country-specific factors, chosen were the statutory corporate income tax rate and cultural factors represented by personal and economic freedoms covered by the Human Freedom Index (HFI), making this study different from others. The tested hypotheses predict significance of all the stated variables....

Real Convergence in the European Union. Bridging the Gap between the New and Old Member States

Ana-Maria Holobiuc

European Financial and Accounting Journal 2021, 16(2):29-50 | DOI: 10.18267/j.efaj.254  

One of the fundamental pillars of the European Union aims at the convergence of economic performances among its Member States. This objective has become increasingly challenging with the advancement of the integration process from the customs union to the economic and monetary union, from the six founding Members to twenty-seven European states. The aim of this paper is to study real convergence in the European Union between 2000 and 2019 and conducting also a comparative analysis between the New and the Old Members. The methodological tools imply absolute and conditional β- and σ-convergence. By using cross-sectional regressions, we have...

Alternative Views on the Link between Risk Aversion and Diminishing Marginal Utility of Wealth

Vojtěch Menzl

European Financial and Accounting Journal 2021, 16(2):51-72 | DOI: 10.18267/j.efaj.255  

Although the link between risk aversion and diminishing marginal utility of wealth is academically well established, theoretical discussions concerning its empirical validity remain. The presented, review-type paper aims to briefly examine theoretical roots responsible for the different views on this association in order to provide a broader perspective to alternative explanations. This latter task is assisted by comparative analysis of two recent pieces of research by Rick Falkenstein and Matthew Rabin; a duo of papers, handpicked at the author’s discretion to demonstrate the convergence of alternative ideas from different authors (and backgrounds)....