The false economy

Reflections on business, finance, society and life

Prem Sikka

Author

Prem Sikka
Emeritus Professor of Accounting, University of Essex, University of Essex

Displaying 11 - 20 of 32 articles

PwC headquarters in Luxembourg. EPA/Nicola Bouvy

November 10, 2014

Luxembourg leaks reveal the organised hypocrisy of the modern corporation

Prem Sikka, University of Essex

All over the world, tax revenues are under relentless attack. With help from accountants, lawyers and financial advisers, corporations are avoiding taxes through complex corporate structures, profit shifting…

The world’s oldest bank, Banca Monte dei Paschi di in Siena, is now battling to survive, after failing the ECB’s stress tests. EPA/Carlo Ferraro

October 28, 2014

EBA stress test needs to use tougher metrics when assessing banks’ solvency

Prem Sikka, University of Essex

The results of the long-awaited European Banking Association (EBA) “stress tests” show that 25 banks were found wanting. Altogether, the banks were about €25 billion short of the capital required to be…

Failing to communicate change. Facundo Arrizabalaga/PA Wire

October 13, 2014

Gloomy outlook from IMF, but it is still not facing up to what caused the banking crash

Prem Sikka, University of Essex

There are mixed messages from the International Monetary Fund. The UK gets a pat on the back for its recovery, but the fund warns of darker clouds ahead in its latest World Economic Outlook. Overall, the…

In the balance. Tesco’s woes draw in its auditors as the shares plunge. Andy Rain/EPA

September 22, 2014

Trolley load of trouble in store for Tesco and its bean counters

Prem Sikka, University of Essex

The news that Tesco overstated its half-year profit guidance by £250m has sent the company’s share price tumbling – and poses serious questions about its auditing and corporate governance. The company…

August 27, 2014

Burger King coffee deal brews up a whopping great tax avoidance problem

Prem Sikka, University of Essex

The US$11 billion merger of Burger King and Canadian coffee and doughnuts chain Tim Hortons is the latest example of a tax inversion move. The deal will see BK transfer its company headquarters from the…

August 1, 2014

New rules on banker bonuses are more bark than bite

Prem Sikka, University of Essex

The 2007-2008 banking crash ushered in an era of austerity and pay freezes, but bank executives have continued to enjoy disproportionate rewards even though their institutions have been bailed out by taxpayers…

June 30, 2014

Big accountancy firms have a human rights problem

Prem Sikka, University of Essex

Protest and dissent are the foundation stones of modern societies and have helped secure a measure of democracy and human rights. Against all the odds, ordinary people have struggled to secure universal…

June 17, 2014

Corporate ‘inversions’ are destroying the tax base

Prem Sikka, University of Essex

People can raze mountains, divert rivers, clear forests and give subsidies, grants and preferential loans as a welcome to corporations, but the companies themselves don’t have any loyalty to communities…

May 19, 2014

I applied the public interest test to the big pharma deal and Pfizer failed

Prem Sikka, University of Essex

The furore over US pharmaceuticals giant Pfizer’s attempted takeover of UK rival AstraZeneca continues. AstraZeneca has now rejected Pfizer’s “final” offer, as it says the proposed deal “undervalues the…

Shell companies can still flourish in sunny tax havens. Gronkh

April 23, 2014

Don’t be misled by Vince Cable’s talk of corporate transparency

Prem Sikka, University of Essex

Business secretary Vince Cable has announced his intention to create a public register of UK company ownership in a bid to tackle tax evasion and money laundering by shady corporate bodies. But don’t believe…