About Laura Bini

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So far Laura Bini has created 27 blog entries.

Dialogue with standard setters. Disclosure initiative and related research projects

By | 2019-09-27T10:36:11+01:00 September 27th, 2019|

Fiume Raffaele, Onesti Tiziano, Bianchi Stefano / Financial Reporting / 1-2019


The disclosure in financial statements is one of the pillars of the framework of the International Financial Statements (IFRS). All the standards include a relevant section with indication about the information and data to be disclosed in the notes, however feedbacks received from the stakeholders and users indicated the existence of concerns about the effectiveness of disclosures in financial statements and about the disclosure overload. In order to respond to the above concerns and feedbacks, the International Accounting Standards Board (IASB) launched the Discosure Initiative in 2013. The Disclosure Initiative is a multi-faced project that involves various IFRSs aiming to limit the disclosure in the financial statements and improving the financial information, it is part of the global project “Better Communication in Financial Reporting” that will be implemented in order to improve the way financial information is prepared by the IFRS entities. The purpose of the following review is to analyse the different stages of the Disclosure Initiative between the four completed phases and the on-going projects and to comment its results.

disclosure initiative, materiality, principles of disclosure, primary financial statements


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The level of compliance with the Italian Legislative Decree No. 254/2016 and its determinants: Insights from Italy

By | 2019-09-27T10:36:51+01:00 September 27th, 2019|

Cantino Valter, Devalle Alain, Fiandrino Simona, Busso Donatella / Financial Reporting / 1-2019


The present research explores non-financial mandatory disclosure in Italy in light of the recent Italian Legislative Decree No. 254/2016 on “the disclosure of non-financial and diversity information”. The study pursues a twofold aim: first, it seeks to measure the level of compliance of non-financial information (NFI) with non-financial mandatory disclosure; and second, it seeks to identify which determinants favor higher compliance levels in the first year of the regulatory adequacy. To these ends, the study examines the non-financial 2017 statements of 50 listed Italian companies to test by means of a NFI Disclosure Score three determinants that could explain the level of compliance. The NFI Disclosure Score was set at 52.58%. Moreover, findings suggest that the type of reporting channels (stand-alone report or disclosure included in the Annual Report), the Guidelines Reporting Initiative (GRI) options chosen by the companies, and the presence of the Corporate Social Responsibility (CSR) Committee within the board all affect compliance levels. This study is one of the first research conducted on mandatory NFI disclosure providing indications for regulators and companies on how to improve NFI disclosure.

non-financial disclosure, mandatory disclosure, non-financial infromation, Italy, Directive 2014/95/EU


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The effects of business model regulation on the value relevance of traditional performance measures. Some evidence from UK companies

By | 2019-09-27T10:11:01+01:00 September 27th, 2019|

Simoni Lorenzo, Bini Laura, Giunta Francesco / Financial Reporting / 1-2019


The first case in the world of a mandatory requirement to disclose business model (BM) in the annual report is represented by Companies Act 2013 issued in the UK. The BM offers a simplified representation of a company’s key resources and of how these are combined to create value. For this reason, a systematic communication of BM should affect the way a company’s book value and its capability to generate earnings are perceived. The purpose of this work is to investigate the impact of mandatory BM disclosure on the value relevance of traditional financial measures. Focusing on a sample of UK listed companies over a six-year period, Ohlson model is utlized to assess the value relevance of book value and net income and their interactions with a dummy variable that accounts for the introduction of mandatory disclosure of BM. In line with previous studies on non-financial disclosure regulations, results show that the introduction of the mandatory requirement to disclose BM has a negative moderating effect on book value of equity and a positive moderating effect on net income. As this is the firt study to investigate the effects of a mandatory BM disclosure regime, it could be of interest for both academics and standard-setters.

business model, value relevance, regulation


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Signing the letter to shareholders: Does the Signatory’s role relate to impression management?

By | 2019-09-27T10:01:10+01:00 September 27th, 2019|

Bozzolan Saverio, Michelon Giovanna, Mattei Marco, Giornetti Andrea / Financial Reporting / 1-2019


In this paper, we syìtudy whether and how impression management in the letter to shareholders (LTS) is affected and related to the role of signatory (i.e. the person whose signature appears in the letter). Specifically, we argue and expect that impression management is associated with the underlying incentives to mislead outsiders that stem from the role of signatory. We find that impression management is more present when Insiders (executives or major shareholders) sign. We also find that the highest level of impression management is when the signatory holds an executive position and is not a major shareholder. Our evidence also suggests that the dichotomous classification between Insiders and Independent Directors is not sufficient to explain cross-sectional variation in impression management.

letter to shareholders, narrative disclosure, impression management, disclosure tone, annual report, executive vs. independent directors


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The effectivenes of intellectual capital disclosure in market assessments of corporate value creation

By | 2019-09-27T09:51:34+01:00 September 27th, 2019|

Biscotti Anna Maria, D’Amico Eugenio, Vinci Sabato / Financial Reporting / 1-2019


According to literature on the value relevance of intellectual capital (IC), a gap between the market and book value of a company larger than one indicates the contribution of IC resources (mostly off-balance sheet) to the value creation potential of a firm as perceived by investors. In Italy, with the introduction of Legislative Decree no. 32/2007 (by which the EU Directive 2003/51/CE was partially implemented into Italian law), companies are encouraged (for the first time in Italy) to disclse in the management commentary for the fiscla year-end of 2008 and for subsequent years non-financial information about employee matters. The purpose of this study is to investigate whether a more virtuous corporate disclosure behaviour on non-financial IC information relating to the human capital significantly contributes to better explain (more than other IC components) the market-to-book value gap, playing a unique role in the market valuation process of high-tech companies. Moreover, a greater disclosure on IC appears to be determinant in improving the accuracy of market assessment of high-tech companies characterised by higher IC performance.


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Greetings from the editor: Ten years of personal engagement in Financial Reporting

By | 2019-09-27T09:39:38+01:00 September 27th, 2019|

Quagli Alberto / Financial Reporting / 2-2018


This issue is the last of my editorship. After ten years (2009-2018), Financial Reporting changes editor, from me to Professor Giunta, University of Florence, and I will remain as associate editor of this journal. Let me say a few words on my engagement with this journal, just to keep the memory of our actions alive. We are getting old, you know…
I have served as the editor of Financial Reporting since its creation, founding the journal together with a group of dear colleagues in 2009. At that time, we intended to develop a new room for the scientific debate about the financial communication of companies to markets, investors, and stakeholders. Our aims were to create the first Italian ournal in financial accounting and communication with double blind reviewing process, to launch an annual workshop as a meeting point of our small but lively community, and to overcome some old bad practices of the academic life, where sometimes the name of the author counts more than the content of the paper. We strongly believe in the academia as an open community, collaboration and working groups as a way of life, even if all the public incentives reward essentially the individual and identifiable, contributions. We rapidly began to open the journal to foreign authors with the use of both Italian and English in published articles, and since 2013 we have decided to move to English as official language of the journal to promote the European ambitions of Financial Reporting. In 2011, we favoured the acquisition of the journal by FrancoAngeli, the current publisher, from IFAF. In this ten years, we promoted workshops and seminars together with the IAAER (Venice, 2013), the IASB (London, 2015), and parallel sessions during the annual congresses of AIDEA and SIDREA. We launched the website of the journal in 2012, and have just renewed it this year. FR counts now 10 annual congresses (Pisa, 2010; Firenze, 2011, Napoli Parthenope, 2012;
Roma LUISS e Sapienza, 2013, Verona, 2014; Grenoble, 2015; Genova, 2016; Parma, 2017, Bologna, 2018 and the next scheduled congress in Turin, 2019). We publish a quarterly newsletter and we recently created the promising ENLAAJ (European network of local academic accountancy journals) together with other 10 European academic journals. FR was ranked as a “C journal” in the last VQR (2011-2014), which is one of the best “Italian” journals of our discipline. We have devoted considerable efforts in promoting studies on the Italian context, both in public and
private companies, and we took very seriously the scope of the journal, focused on external communication to markets through financial reporting. Our scope have never included papers on management accounting or inspired by a purely historical perspective. Under my editorship, this journal published 27 issues. We contributed to the diffusion of the culture of reviewing in our Italian academy. The growth of the journal interested some relevant publishing groups such as Taylor & Francis and Wiley, which offered to include it their archives, and I hope that
in the next future Financial Reporting will succeed in including its issues in the most important databases of scientific articles, available in the worldwide academic libraries. Now Financial Reporting has all the conditions to ask for the inclusion in the Scopus list of journals. All the above results to the readers could seem satisfying for a new, greenfield journal. Actually, I do not feel completely satisfied. I am worried for the rush to the A journals. Obviously, you could say, FR is not an A journal, how can I be satisfied? Honestly, my main troubles come from this growing bibliometric trend, in which the venue of publication seems more important than the concepts and theses developed in the papers. Thus, more conceptual approaches – maybe less quantitative but able to open new perspectives – are more and more penalized, not to mention the limited number of studies on national or European contexts compared to those on international or American settings. There is a great need of original ideas, close to the practice, even if not completely mature. I hope that the new editor will see all those things getting better.
I want to thank all assistant editors of these years: Giovanna Michelon, Claudia Gabbioneta, Monica Veneziani, and Michela Cordazzo. FR has seen the growth of their careers along the years. They are all professors. Very
good!
See you around, somewhere; we are living in a small world.


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The role of institutions in the process of global convergence to IFRS

By | 2019-09-27T09:28:10+01:00 September 27th, 2019|

Aprile Roberto, Bini Laura / Financial Reporting / 2-2018


This paper uses some major contributions from accounting institutional theory to discuss the process of convergence toward IFRS. Our analysis identifies the most influential institutions and the complex networks of relationships among institutions, offering a valuable contribution to a better understanding of the current state of diffusion of IFRS around the world and the current progress of the convergence process. We identify the different roles of some main institutions, grouping them into three categories and highlighting their main interactions in different contexts. We place global and international institutions such as IOSCO, EU and other international agencies such as the World Bank into the first category, since they have fostered the initial phase of the convergence process. Secondly, we find that the presence of institutions such as local government and standard setters, which play an intermediary role, mediates between the need to guarantee the implementation of the standards and the need to preserve pre-existing equilibria. Finally, we discuss the role played by the end-users of the standards. Our analysis shows that these institutions are the most critical forces. In fact, in the abscence of a structured, led program that orients these forces towards IFRS, the convergence process could result in the proliferation of local systems of standards, increasing the risk that harmonisation is achieved only in name.

IFRS, accounting convergence, institutional theory, isomorphism


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Do letters to shareholders inform or mislead? Insights from insider trading

By | 2019-09-27T09:13:24+01:00 September 27th, 2019|

Becalli Elena, Bozzolan Saverio, Laghi Enrico, Mattei Marco / Financial Reporting / 2-2018


Empirical studies consistently provide evidence that investors perceive quaitative disclosures as useful because they have significant effects on analysts’ forecast revisions and a firm’s share price. But these results leave unanswered the question of whether managers write qualitative disclosures to inform or mislead investors. Based on the signaling theory, we consider tw actions by the same manager: one (insider trading) is a costly signal whilst the other (qualitative disclosure) is the cheap signal. We then verify whether they are coherent. We investigate the content and the verbal tone of the Letter to Shareholders and the insider trading from its author before and after the letter’s date of release and find that the costly signal (the insider trading) is not coherent with the cheap signal (the disclosure). This finding indicates that managers do not use qualitative disclosures to offer incremental information but that they might use them to mislead investors.

signaling theory, impression management, insider trading, letter to shareholder, verbal tone


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Determining characteristics of boards adopting Integrated Reporting

By | 2019-09-27T09:13:59+01:00 September 26th, 2019|

Alfiero Simona, Cane Massimo, Doronzo Ruggiero, Esposito Alfredo / Financial Reporting / 2-2018


Nowadays, companies and markets are increasingly international and growing numbers of stakeholders are affected by the economic, social and environmental aspects of business, resulting in significant changes in how corporate information is both perceived and published. Over the last few years, this new scenario has led to many company boards voluntarily adopting an accounting and company performance tool, known as Integrated Reporting (IR), which is a single disclosure document that satisfies stakeholders’ increasing need for communication. This study’s objective is to contribute to existing literature on the relationship between financial reporting and corporate governance, investigating into whether certain characteristics of the board – including numbers, gender, nationality, average age – influence the decision to adopt IR or not. The analysis was carried out on a sample of 120 Italian listed companies in different sectors for the year 2014. These results showed a positive relationship between the decision to use IR and the size of the board and the presence of female boardmembers, whereas the presence of foreign and older boardmembers had a negative effect on adopting IR.

integrated reporting, board of directors, diversity, logit


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The value relevance of fair value hierarchy. Empirical evidence from the European Union

By | 2019-09-26T16:19:03+01:00 September 26th, 2019|

Mechelli Alessandro, Sforza Vincenzo, Stefanoni Alessandra, Cimini Riccardo / Financial Reporting / 2-2018


This paper investigates the value relevance of the fair valur hierarchy disclosed for financial instruments through a sample of 97 financial entities listed over the period 2011-2016 i the stock markets of 23 Eurpoean countries. Its main objectives are threefold. First, by analysing the European setting, the paper means to study the value relevance of the fair value hierarchy to judge the choice of the International Accounting Standard Board (IASB) to extend the disclosure of the hierarchy to all the assets and liabilities. Second, the paper aims to evaluate the choice of abandning management intent as a criterion for the classification and measurement of financial instruments investigating the effect that such an intent has on the value relevance of the fair value hierarchy. Finally, by studying the effect that exposure to risks has on the value relevance of the fair value hierarchical levels, the paper plans to investigate the implications that the disclosure of the hierarchy could have on the rules of Basel 3 capital adequacy. Forumulating three different research hypotheses, the findings validate them prviding evidence that the value relevance of fair value measurement depends on the source of inputs used to estimate fair value and that both management intent and the risk intensity of the asset book only affect the value relevance of the less reliable fair value estimates. These results are useful for standard setters and regulators. Actually, for the investors decisions, they suggest the importance of disclosing the fair value hierarchy for all the assets and liabilities as required by IFRS 13, as well as teh advantage of replacing in IFRS 9 the management intent criterion.


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