About Laura Bini

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So far Laura Bini has created 63 blog entries.

Non-financial disclosure and women on board: Is a mandatory approach on gender quotas effective to increase communication quality?

By | 2022-02-03T11:53:40+01:00 February 3rd, 2022|

Rebecca Miccini / Financial Reporting / 2-2021

The present study investigates the effects of women on companies’ boards on the quality of non-financial information, and the influence that a mandatory approach has on this relationship. Previous studies have dealt with analysing the effects of female presence on CSR or ESG information, but few pieces of research have taken into account other strands of non-financial information and have re-sorted to an index to measure its quality. Therefore, this study aims to contribute by extending the analysis to any type of non-financial information communicated by a company. Moreover, the present research contributes to the strand of literature investigating the role of women on companies’ boards. In fact, the results of the OLS regression analysis demonstrated that the presence of women with an executive role positively influences the quality of disclosure in Italy, and this relationship is not influenced by the advanced stage of application of the regulation on gender quotas. Moreover, disclosure quality is significantly higher for firms that disclose a non-financial statement. Nevertheless, the study suffers from some limitations with respect to the sample size and the analysis of the trend in reporting after the introduction of Directive 2014/95/EU.

 

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The assurance of non-financial disclosure: A longitudinal analysis of the academic and professional literature

By | 2022-02-03T11:50:09+01:00 February 3rd, 2022|

Michele Guidi, Marco Giuliani, Maria Serena Chiucchi, Stefano Marasca

/ Financial Reporting / 2-2021

Various studies argue that non-financial information is particularly relevant for business stakeholders. To reduce the risks related to information asymmetries and “window dressing” practices and to enhance the credibility of non-financial information, the need for assurance has arisen. In recent years, scientific and professional interest in the issues related to the assurance of non-financial information has increased. Up to now, there have been very few studies on the evolution of non-financial disclosure (NFD) assurance, nor have scholars addressed the possible gaps and future research perspectives in this field. A systematic review is developed with the following aims: first, to explore the evolution of the NFD assurance literature by systematising academic studies (i.e., papers published in scientific journals) and professional contributions (i.e., papers published in non-scientific sources) from the auditing field, and second, to understand whether theory and practice have influenced each other in the field of NFD assurance, i.e., whether a bridge between theory and practice can be identified within this discourse. The main findings are the following: firstly, four stages can be identified in the evolution of the study of NFD assurance, and secondly, there is virtually no interaction between theory and practice, as practically no scientific papers are mentioned in professional papers, while academic scholars consider professional publications only as empirical data sources.

 

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Dialogue with standard setters. The IASB proposals on the recognition of regulatory assets and regulatory liabilities in the IFRS financial statements

By | 2022-02-03T11:43:06+01:00 February 3rd, 2022|

Alessio Acunzo, Leo Van der Tas  / Financial Reporting / 1-2021

 

 

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The complexity in measuring M&A performance: Is a multi-dimensional approach enough?

By | 2022-02-03T11:33:10+01:00 February 3rd, 2022|

Elisa Roncagliolo, Francesco Avallone / Financial Reporting / 1-2021

M&A are complex corporate events involving two or more companies and often requiring relevant efforts in order to be successful. For these reasons, both scholars and practitioners are interested in assessing the success rate of M&A and measuring their influence on the corporate performance. Despite the complexity of the M&A phenomenon, previous studies that empirically examine this issue according to an accounting-based perspective, largely adopt single performance measures. Therefore, our study aims to explore whether the use of a multi-dimensional approach in the development of accounting-based performance measures could provide a comprehensive examination of the change in corporate performance due to complex events, such as M&A. In particular, this study assesses the performance of M&A concluded in the European context through the development of multiple accounting-based performance indicators that examine: (i) profitability, (ii) growth, and (iii) financial situation. In addition, we analyse a crucial performance dimension, the cost of employment, which has received limited attention from previous empirical research. Consistently with the multifaceted nature of M&A, results indicate that they provide a mixed impact on different performance measures. Therefore, main findings suggest that the measurement of M&A performance should take into consideration different contextual features.

 

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Bridge over troubled water: Is it possible to define other comprehensive income?

By | 2022-02-03T11:29:31+01:00 February 3rd, 2022|

Thomas Ryttersgaard  / Financial Reporting / 1-2021

Although other comprehensive income did not exist in the conceptual framework until 2018, it has been a part of IFRS for many years, and it has not been defined based on accounting theory. This paper considers arguments for the current use of other comprehensive income under IFRS and finds that matching and prudence are at the core of other comprehensive income in IFRS despite not being elements of the conceptual framework. This suggests that the concept of other comprehensive income exists because the IFRS standards are founded on a mix of balance sheet-based and income statement-based accounting principles. Based on the characteristics of other comprehensive income and the IASB’s arguments for the recognition of gains and losses in other comprehensive income, this paper proposes a definition of other comprehensive income that can be used to ensure a uniform application of the concept across accounting standards and to reduce risks of inconsistency.

 

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Is risk reporting a possible link between financial and management accounting in private firms?

By | 2022-02-03T12:06:33+01:00 February 3rd, 2022|

Chiara Crovini, Giovanni Ossola / Financial Reporting / 1-2021

This study represents a theoretical analysis with the purpose to continue the discussion on the relationship between management accounting (MA) and financial accounting (FA), by concentrating on the role of risk reporting as a possible manifestation of their convergence. Moreover, the analysis focuses on the private-firm sector as private firms represent the backbone of the economic system of several countries and little is known about financial and non-financial reporting. Drawing on the neo- Durkheimian institutional theory, this paper develops a conceptual framing that considers risk as an embedded element of the business domain and risk reporting as a direct outcome of the convergence between MA and FA in private firms. Furthermore, the neo-Durkheimian institutional theory emphasizes that the owners and managers’ risk attitude is a crucial element affecting risk disclosure, especially in private firms.

 

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Accounting discretion in family firms: The case of goodwill write-off. Evidence from US firms

By | 2022-02-03T12:04:47+01:00 February 3rd, 2022|

Giulio Greco, Lorenzo Neri  / Financial Reporting / 1-2021

This paper investigates whether family ownership affects decisions to take a write-off of the goodwill and the amount written off. This study is based on a panel of public United States firms. Consistent with predictions based on agency theory and socio-emotional wealth (SEW) theory, the findings demonstrate accounting discretion in goodwill impairment is lower in family firms than non-family firms. The results also show that first-generation family firms are more likely to exploit accounting discretion in goodwill impairment decisions than second or later generation family firms, due to greater concerns associated with the negative consequences of the write-off. This paper contributes to previous research on accounting in the context of family firms. Family firms cannot be considered a homogeneous group with the same propensity to exploit the discretion allowed by accounting rules in highly subjective fair value measurements. Generational change significantly influences firms’ accounting choices, leading to more credible earnings and asset values for second or later generation family firms. This study also suggests the earnings management literature would benefit from additional in-depth investigation into how the generational stage of family businesses affects accounting discretion.

 

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Dialogue with standard setters. The use of video in corporate reporting

By | 2020-12-23T15:10:17+01:00 December 23rd, 2020|

Thomas Toomse-Smith  / Financial Reporting / 2-2020

Companies have many tools and media available to them to communicate with investors and other stakeholders. While PDF remains the most popular medium for listed companies in the UK, video is also identified by both companies and investors as an area where future development is expected. This article looks at how companies currently use video in corporate reporting, considers how it might be used in the future and explores some interesting examples.

 

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Integrated reporting and the epistemic authority of Big Data: An exploratory study from the banking industry

By | 2020-12-22T19:18:03+01:00 December 22nd, 2020|

Alice Francesca Sproviero  / Financial Reporting / 2-2020

This paper aims at exploring how corporate members involved in integrated re-port (IR) preparation assess the reliability of Big Data as a new source of information. It investigates IR preparation within a company operating in the Italian banking industry that has adopted Big Data since 2015. Using the epistemic authority lens (Kruglanski et al., 2005), this study reveals how corporate members draw mainly on their professional background and the Big Data-related initiatives to define the extent to which Big Data contributes to IR preparation, with educational background and corporate circumstances playing a less incisive part. Constructing performance indicators, identifying prospective information to contrast criminal phenomena and lending support to relational sustainability all act as in-formational and motivational factors that lead members to rely on Big Data while preparing the IR. The paper contributes to the infant literature on Big Data in corporate reporting by offering early practical insights into how Big Data informs IR preparation. It also provides evidence of a necessary intertwining between ac-counting-based knowledge and training initiatives on advanced analytics to fully exploit Big Data in IR preparation.

Insolvency, crisis, financial indicators, early warnings.

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Are tax incentives determinant and relevant for capitalizing R&D expenditures? Evidence from Europe

By | 2020-12-22T19:15:20+01:00 December 22nd, 2020|

Giuseppe Di Martino, Grazia Dicuonzo, Arcangelo Vitelli, Vittorio Dell’Atti / Financial Reporting / 2-2020

Using a sample of European listed companies between 2014 and 2017, we ex-a¬mine accounting factors that lead management to capitalize R&D costs, with a specific focus on the tax incentives in the form of government grants. In our analysis, we distinguish between companies which capitalize R&D costs (“capitalizers”) and companies which expense R&D costs (“expensers”). The evidence shows that the choice to capitalize R&D costs is positively related to the recognition of grants as revenue. We also investigate the value relevance of tax incentives related to R&D expenditures. Our empirical findings show that investors draw a distinction between government grants associated with research costs (EXP) and those associated with development costs (CAP). This paper presents both theoretical and practical implications. It contributes to the current debate on expensing or capitalizing R&D costs through a study of tax incentives received by companies for their research activity. Moreover, it offers empirical evidence on the use of R&D cost capitalization for purposes of tax incentives, which can be utilized by standard setters to assess opportunistic behaviors adopted by companies.

Accounting choices, government grants, R&D expenditures, tax incentives, value relevance.

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