About Laura Bini

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So far Laura Bini has created 52 blog entries.

Does the Integrated Reporting’s definition of human capital fit with the HR manager’s perspective?

By | 2020-12-22T19:05:30+01:00 December 22nd, 2020|

Maurizio Cisi, Francesca Alice Centrone, Laura Corazza  / Financial Reporting / 2-2020


The assessment of the organisation’s ability to create value over time through its human capital (HC) is crucial for every business. Several definitions of HC exist, quite ambiguous and not unique. This fuzziness is impacting, in turn, the business practice. This study is grounded on the concept of HC, as defined by the Integrated Reporting (IR) and it is focused on testing the self-identification of HR managers with the IR definition. With this work, authors want to question the inclusivity of the definition of HC, as well as, its practical suitability, recurring to a theoretical framework called dialogic-polylogic accounting. A first exploration of the HC definition from the IR framework has been con-ducted, representing the cause-effect links and some reflections on its semantics. Furthermore, the opinion of a purposive sample of key informants HR managers is explored through a qualitative content analysis on 19 semi-structured interviews. Such key informants have a first-hand knowledge about the community of Italian HR managers, and they have no experience in IR representing the voice of excluded, but potential users. Despite an initial sympathetic reaction, the HC practitioners stressed an excessive technical rigidity in IR definition, quite distant from their field experience on HC.

Human capital definition, Integrated Reporting, human resources, dialogic-polylogic accounting, non-financial reporting.


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Is IFRS 9 better than IAS 39 for investors’ decisions? Evidence from the European context at the beginning of the transition year

By | 2020-11-04T17:02:07+01:00 November 4th, 2020|

Mechelli Alessandro, Sforza Vincenzo, Cimini Riccardo / Financial Reporting / 1-2020


The first-time adoption of International Financial Reporting Standards (IFRS) 9 at the beginning of fiscal year 2018 has offered the opportunity to test whether the informationn provided by this new accounting standard on financial instruments is more useful for investors than International Accounting Standard (IAS) 39. This paper assesses and compares the value relevance of book value calculated according to the requirements of the two accounting standards on financial instruments at the beginning of the transition year for a sample of 110 financial entities listed in 20 stock markets that have recorded transition effects between retained earnings. Findings provide evidence that both IAS 39 and IFRS 9 are value relevant and that the second one adds more infromation than that previously supplied by the first one. The paper contributes to the literature by providing the first evidence of the usefulness of the new accounting standard on financial instruments. About its practical implications, the paper provides insights regarding the high quaity of the International Accounting Standards Board (IASB)’s standard setting process.

IFRS 9, IAS 39, value relevance, European Union, financial entities


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European Financial Reporting Enforcement: Analysis of Practices and Indices

By | 2020-11-04T16:50:54+01:00 November 4th, 2020|

Johansen Thomas Riise, Olsen Carsten Allerslev, Plenborg Thomas / Financial Reporting / 1-2020


This paper analyses how financial reporting enforcement varies across 17 European countries and the extent to which the enforcement indices used in the existing accounting literature capture this enforcement. Based on survey responses from European enforcement bodies and regulatory specialists, the study finds extensive variations in financial reporting enforcement across the European countries. Furthermore, enforcement indices used in the accounting literature do not appear to capture financial reporting enforcement. These findings should be of interest to ESMA and other enforcement bodies as well as for the use of enforcement indices in accounting research.

financial reporting, financial reporting enforcement, enforcement, regulation


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A critical approach to BSC studies: State of art, critical issues and future trends

By | 2020-11-04T16:40:08+01:00 November 4th, 2020|

Hristov Ivo, Chirico Antonio / Financial Reporting / 1-2020


The aim of this paper is to identify criticisms of the Balance Scorecard (BSC) and create a new model that is more adequate for business performance, thus providing researchers and practitioners with a way to manage critical issues connected to the BSC. To this end, we devote our attention to two main research questions: (1) What are the main critical dimensions in the existing studies on BSC? (2) How could the structure of the BSC be modified in order to take into account its critical dimensions? Accordingly, we review articles published in 429 journals, in 22 different subject areas of the Chartered Association of Business Schools’ Academic Guide (ABS). We examine a total of 342 papers and obtain 102 relevant papers that focus on criticism of the BSC. Thanks to the information obtained from a survey and interviews conducted with managers of Italian companies, we create and adjusted BSC (ABSC) that allow us to considerate the critical aspects from a new perspective, named the critical perspective. The conceptual model is developd in three dimensions (conceptual, structural and environmental). Research findings suggest that considering the critical perspective makes it possible to build the ABSC, making this management tool more accessible and useful for businesses.

balanced scorecard, performance management, critical perspective, ABSC


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The information content of Fairness Opinion in M&A: Evidence from Italy

By | 2020-11-12T10:08:50+01:00 November 4th, 2020|

Courteau Lucie / Financial Reporting / 1-2020


One of the major sources of inefficiencies in M&A transactions is the asymmetry of information between the bidder and the target. Several disclosure strategies are used by bidders to convince target shareholders to tender their shares but also to convince their own shareholders about the value of the proposed deal. Target managers also try to communicate to their shareholders their appreciation of the offer. To add credibility to this communication, experts are often called on to express an independent opinion on the offer price, in a document called the Fairness Opinion (FO). While FOs have been found to have no effect on deal efficiency in the US, this study re-examines the issue by considering the actual content of the document, in terms of the valuation process that leads to the expert opinion, in the context of Italian M&As where FOs are mostly voluntary and often provide detailed information about target valuation. The results show that even in a setting where weak enforcement of disclosure regulations allows bidders and targets to choose the level and detail of disclosure, the quality of the content of FO has only a weak association with the performance of the deal, both in terms of bidder announcement returns and of post-deal market and operating performance.

mergers and acquisitions, fairness opinion, firm valuation methods


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Dialogue with standard setters. Disclosure initiative and related research projects

By | 2019-09-27T10:36:11+02:00 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+02:00 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+02:00 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+02:00 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+02:00 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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