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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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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Regulating through the “Logic of Appropriateness” and the “Rhetoric of the Expert”: The Role of Consultants in the Case of Intangibles Reporting in Germany

By | 2017-12-27T14:29:20+01:00 December 27th, 2017|

Girella Laura, Zambon Stefano/ Financial ReportingRiviste / Fascicolo: 3-2013


The paper provides some insights into the rationales, processes and actors according to which Intangibles Reporting (IR) has reached a (soft) regulatory stage in the German business context since the mid 2000’s. It draws on the “logic of appropriateness” (March and Olsen, 1992; 1997) combined with the “rhetoric of the expert” (Czarniawska, 1997) in order to examine the documents published in relation to IR. The analysis demonstrates how in Germany this (soft) regulation of reporting of these resources has been mainly realized by a group of management consultants. It is of a particular interest that in the Guidelines they have devised and promoted, the ad hoc organizational figure, the moderator, that has been identified as central for the proposed intangibles reporting does not belong to the accounting domain. This way, the work contributes and expands on previous debates in relation to the “professional jurisdiction” that has made claim throughout the arena of Intangibles by accountants (Napier and Power, 1992; Power, 2006), illustrating an example of an alternative site in which its professionalization and regulation can occur (Cooper and Robson, 2006). Specifically, it is suggested that the actors and the ways in which regulation is created and perpetuated have sometimes to be disentangled from the ones created within the accounting field.

Keywords: Regulation, experts-Consultants, Germany, appropriateness, intangibles


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