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1 – 10 of over 19000Fabricia Silva Rosa, Alessio Bartolacelli and Rogério J. Lunkes
The purpose of this study is to analyze the simultaneous effect of the regulation (non-financial information (NFI)- 254/2016) and the factors driving in (no)environmental…
Abstract
Purpose
The purpose of this study is to analyze the simultaneous effect of the regulation (non-financial information (NFI)- 254/2016) and the factors driving in (no)environmental disclosure (ED) and the reduction of greenhouse gases (GHG) of Italian companies.
Design/methodology/approach
The study is supported by the theory of legitimacy. The level of ED regarding GHG was measured for 125 Italian companies in 2018, the companies were selected from Commissione Nazionale per le Società e la Borsa di Itália, because those included in the list of companies in the Dichiarazione Non Finanziaria all date back to December 31, 2019. Using a scoring system and content analysis of their annual reports, through 20 criteria supported by the literature. The study explores variables of the current legislation, the effect of disclosure and no disclosure, and the influence of the shareholding structure, managerial shareholding, economic power and industry classification at the ED level. The analyses were carried out using structural equation modeling because the authors seek to understand the cause-effect relationship between aspects of legitimacy with dissemination on GHG emissions.
Findings
This study finds that NFI.
Research limitations/implications
The study is limited to understanding the effect of legislation on the level of mandatory disclosure in non-financial reports, and the Paris Agreement (voluntary) disclosure on GHG, so the choice of companies analyzed and the study variables are limited to companies that are required to publish non-financial reports, and the variables considered in the study take into account normative aspects and voluntary guidelines of the Paris Agreement. As implications, the results show that adherence to the Paris Agreement contributes more to the quality and comprehensiveness of the information than adherence to the European and Italian legislation (mandatory), which reinforces the understanding that even if the legislation has advanced, it is still soft regarding the quality of information on companies' practices regarding the reduction of GHG emissions.
Practical implications
The findings suggest that non-financial reports are being adopted by listed Italian companies, however, there is variation in the scope of the reports, especially on GHG. For companies listed in Italy, non-financial reports comply with Italian Legislative Decree 254/2016 (mandatory), however, the quality of information on GHG is improved when companies' reports have greater adherence to the Paris Agreement (voluntary).
Social implications
The results can encourage companies listed in Italy to incorporate NFI in annual reports based on the Paris Agreement, the global pact to reduce GHG emissions, thus building confidence in the capital market and society in general.
Originality/value
The findings contribute to the literature on non-financial reporting, the level of compliance with legal basis and international best practices, such as the Paris Agreement, providing empirical analyzes of non-financial disclosures in publicly available reports in Italy.
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Alessandro Merendino and Rob Melville
This study aims to reconcile some of the conflicting results in prior studies of the board structure–firm performance relationship and to evaluate the effectiveness and…
Abstract
Purpose
This study aims to reconcile some of the conflicting results in prior studies of the board structure–firm performance relationship and to evaluate the effectiveness and applicability of agency theory in the specific context of Italian corporate governance practice.
Design/methodology/approach
This research applies a dynamic generalised method of moments on a sample of Italian listed companies over the period 2003-2015. Proxies for corporate governance mechanisms are the board size, the level of board independence, ownership structure, shareholder agreements and CEO–chairman leadership.
Findings
While directors elected by minority shareholders are not able to impact performance, independent directors do have a non-linear effect on performance. Board size has a positive effect on firm performance for lower levels of board size. Ownership structure per se and shareholder agreements do not affect firm performance.
Research limitations/implications
This paper contributes to the literature on agency theory by reconciling some of the conflicting results inherent in the board structure–performance relationship. Firm performance is not necessarily improved by having a high number of independent directors on the board. Ownership structure and composition do not affect firm performance; therefore, greater monitoring provided by concentrated ownership does not necessarily lead to stronger firm performance.
Practical implications
This paper suggests that Italian corporate governance law should improve the rules and effectiveness of minority directors by analysing whether they are able to impede the main shareholders to expropriate private benefits on the expenses of the minority. The legislator should not impose any restrictive regulations with regard to CEO duality, as the influence of CEO duality on performance may vary with respect to the unique characteristics of each company.
Originality/value
The results enrich the understanding of the applicability of agency theory in listed companies, especially in Italy. Additionally, this paper provides a comprehensive synthesis of research evidence of agency theory studies.
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Filomena Izzo, Viktoriia Tomnyuk and Rosaria Lombardo
In the intellectual capital literature, no studies have examined the causal relationship between Italian Fintech companies' performance and intellectual capital, especially the…
Abstract
Purpose
In the intellectual capital literature, no studies have examined the causal relationship between Italian Fintech companies' performance and intellectual capital, especially the impact of digital industrialization on human capital. This paper aims to fill this gap in measuring human capital efficiency in the Italian Fintech market.
Design/methodology/approach
The authors adopt Pulic's model and define the intellectual capital through three components (human capital, structural capital and capital employed) and perform an exploratory analysis of the Italian Fintech companies by using principal component analysis. Then the authors investigate the effects of the intellectual capital and its components on the Italian Fintech companies' performance by using parametric and nonparametric regression models.
Findings
Results of regression models reveal that human capital and employed capital are positively related to the companies' performance, except for the structural capital.
Research limitations/implications
The study focuses on the Italian level, and future research could be extended to different European countries or to the global Fintech market. Moreover, it is advised to explore more components that contribute to intellectual capital measurement inside the companies operating in the 4.0 industrial revolution, such as the innovative capital and the relational capital.
Practical implications
This study proposes a new vision for managerial procedures to find which features are critical for achieving profitability in this digital era. The study offers interesting reflections on the management decisions for both companies and public decision-makers. Results suggest that, among intellectual capital components, human capital plays a strategic role for the knowledge-intensive companies that are interested in potentiating their performance and competitiveness. Furthermore, this study finds that human capital is critical factor for achieving profitability in this digital era.
Social implications
The Fintech sector is one that most benefited from the Digital Revolution, and if it is adequately managed, it can bring great benefits in terms of major employment, especially for the young population, and bring major financial inclusiveness all over the world.
Originality/value
This is the first study that examines the Italian Fintech market and analyzes the dependence relationship between companies' performance and intellectual capital components, identifying the role of human capital in a new completely digital sector. The analysis findings are strategic for the business decisions-making process.
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Clelia Fiondella and Claudia Zagaria
In this chapter, we address the operationalization of the enterprise risk management (ERM) system in Italy. We first present some Italian economic highlights emphasizing the…
Abstract
In this chapter, we address the operationalization of the enterprise risk management (ERM) system in Italy. We first present some Italian economic highlights emphasizing the uncertainty characterizing the domestic development, and we focus on the recent changes in domestic regulation which are related to the concept of risk. Then, we examine the degree of knowledge of ERM in the academic arena and the role of professional bodies in this field, focusing on if and how ERM principles are embedded within organizations and effectively integrated into their practices. On the basis of the evidence from questionnaires collected from risk professionals working in prominent Italian firms, who are involved in different ways in the ERM process, we provide some concluding considerations about the degree of integration of ERM practices with governance mechanisms, accounting practices and disclosure in annual reports.
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Giorgio Mion and Cristian R. Loza Adaui
Public-interest entities – among which are listed companies – are obliged to publish nonfinancial disclosure in some countries and regions. The European Commission established…
Abstract
Public-interest entities – among which are listed companies – are obliged to publish nonfinancial disclosure in some countries and regions. The European Commission established mandatory nonfinancial disclosure by Directive 2014/95/EU. While a large body of literature was developed on sustainability reporting quality (SRQ) in voluntary context, evidence about the effect of mandatory nonfinancial disclosure on SRQ is controversial and previous experiences worldwide did not make clear if obligatoriness improves SRQ. This chapter aims to bridge the gap of empirical evidence about this phenomenon in European countries, focusing on first implementation of new legislation by Italian and German companies. The research has an explorative character and it adopts content analysis methods performed on sustainability reporting practices of companies listed in FTSE-MIB and DAX 30. The analysis aims to understand if obligatoriness affects SRQ, causes some changes in reporting practices such as harmonizing Italian and German ones by performing a cross-country comparison. The findings suggest that obligatoriness improves reporting quality and, above all, it fills the gap between different countries by fostering the adoption of international guidelines and the consequent introduction of some content, such as materiality analysis and quantitative measures of social and environmental performance.
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Alison Fox, Gwen Hannah, Christine Helliar and Monica Veneziani
The purpose of this paper is to examine the opinions of national stakeholders on the costs and benefits of International Financial Reporting Standards (IFRS) implementation and to…
Abstract
Purpose
The purpose of this paper is to examine the opinions of national stakeholders on the costs and benefits of International Financial Reporting Standards (IFRS) implementation and to determine whether countries with disparate social, economical and political backgrounds have different experiences when complying with IFRS.
Design/methodology/approach
Semi‐structured interviews were conducted with preparers, users and auditors of annual reports and accounting regulators in the UK (including Ireland) and Italy.
Findings
There were some differences in the experiences of IFRS implementation between stakeholders from different countries. However, there was widespread agreement that costs exceeded the benefits of reporting under the new standards. Further it is recognised that international standard‐setters have a large set of stakeholder views to manage and it is therefore important that standard‐setters are aware of the costs and benefits of their accounting requirements.
Originality/value
This analysis is useful for companies that have not already adopted IFRS. It explains the differences and similarities of the costs and benefits of IFRS implementation from an Anglo‐Saxon and an EU continental perspective.
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Rossano Eusebio, Joan Llonch Andreu and M. Pilar López Belbeze
This is the second of two papers which examine the Italian and Spanish textile‐clothing sector. The purpose of this paper is to focuse on the key factors in the international…
Abstract
Purpose
This is the second of two papers which examine the Italian and Spanish textile‐clothing sector. The purpose of this paper is to focuse on the key factors in the international performance of textile manufacturing companies.
Design/methodology/approach
In order to compare Spanish and Italian cases, the empirical study used a standardized questionnaire for collecting data. The cases analysed are respectively geographical zones with a great tradition in textile‐clothing industry in their country, Catalonian (in the Spanish case) and Lombardian business (in the Italian case).
Findings
It was found that international experience is the main factor in the export performance for both cases but investment in R&D and export experience have been the keys for explaining the major export performance of the Italian businesses.
Research limitations/implications
The sample is formed basically from small textile‐clothing business (with less than 500 employees).
Originality/value
The paper is of value in that it provides a comparative study of the main factors that have affected the export performance of the Spanish and Italian businesses. A wide range of factors has been studied, including characteristics of the business, such as size, dispersion of sales and export experience.
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Chunqing Li, Xiaoli Wang, Jieli Zhang and Chenxi Li
This paper aims to explore the key elements and dynamic formation mechanisms involved in the company identity construction during multicompany identification.
Abstract
Purpose
This paper aims to explore the key elements and dynamic formation mechanisms involved in the company identity construction during multicompany identification.
Design/methodology/approach
This study adopted a longitudinal single case study method, selected a representative company as the study case and analyzed the interactive practice of identity construction between the company and its external stakeholders based on the theory of organizational identity and sensemaking.
Findings
This study finds that the process of company identity construction for external stakeholders involves six elements. Companies mainly use a highly controlled, equality and interaction model to develop identity for a single stakeholder. Company identity is based on the company’s core identity claims and is formed by gradually integrating and cooperating with the identity claims of different stakeholders. Meeting the self-defining needs of stakeholders is a key driving force behind the evolution of company identity.
Practical implications
This study offers practical implications for companies to pursue and construct multicompany identity. For different types of external stakeholders, companies can adopt different identity sensemaking models. To build a new company identity, a company needs to do more on the basis of identity insights to break cognitive constraints and build new identity claim. Companies need to integrate new identity claims with the original identity claims. If different identity claims conflict or are difficult to reconcile, it may damage their original identity claims and companies need to evaluate the trade-offs.
Originality/value
This study expands the concept of company identity construction from the individual perspective to organizational identity and contributes to research in relationship marketing. This study identifies the key elements of company identity construction with multistakeholder participation and contributes to theory building in company identity research. The results of this study reveal the company identity construction mechanism for different external stakeholders and the dynamic formation process of multicompany identity.
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Gaetano Matonti, Jon Tucker and Aurelio Tommasetti
This paper aims to investigate auditor choice in those Italian non-listed firms adopting the “traditional” model of corporate governance. In Italy, non-listed firms can choose…
Abstract
Purpose
This paper aims to investigate auditor choice in those Italian non-listed firms adopting the “traditional” model of corporate governance. In Italy, non-listed firms can choose between two types of auditor: the Board of Statutory Auditors (BSA), that is the statutory auditors, or an “external” auditor. At the same time, a BSA conducts the administrative auditing for all companies with equity exceeding €120,000.
Design/methodology/approach
The paper estimates a logistic regression model of firm auditor choice between an external auditor and the BSA, which incorporates variables proxying for both agency conflict and organizational complexity effects.
Findings
The results show that of the potential agency factors, only board independence drives auditor choice, whereas organizational complexity and risk factors including firm size, investment in inventories, subsidiary status and complexity drive auditor choice. These results may be explained in the administrative audit role of the BSA, which monitors both day-by-day firm operations and the financial statements preparation “project”. Stakeholders as a result are reassured that, in general, their interests are protected. Finally, it was found that legal form and voluntary International Financial Reporting Standards compliance exert an impact on auditor choice.
Originality/value
The paper provides support for an internal yet independent auditing body such as the Italian BSA as a wider model for corporate governance in European non-listed firms (OECD, 2004 and 2015). The BSA as an administrative and financial auditing body made up solely of independent highly qualified professionals can work within the firm on an operational basis, and in so doing can increase stakeholder protection.
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