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Before 2007, European banks and other financial activities were characterized, on the one hand, by high income, many assets on and off balance and strong recourse to the use of leverage; on the other hand, the inappropriate use of derivatives, securitization containing collateralized debt obligation and (CDO) and credit default swap (CDS), and the conceding of subprime loans have created the conditions of the financial crisis. The lack of confidence generated in the financial market has made it increasingly pressing need for better disclosure to all stakeholders, as an important element to ease the funding of other venture capital and/or debt aimed at improving the competitiveness and growth. The quality of the relationships between the bank and the market is linked to the ability to communicate their economic and financial performance, highlighting the risks that characterize its core business. The information opacity of credit intermediaries is often caused by both managerial opportunism phenomena and by excessive cost of disclosure. The predominant literature, indeed, claims that there are many advantages of a good disclosure that results in reduction of the cost of capital (Diamond and Verrecchia, 1991), easy access to found (Linsey and Schrives, 2005), creation of more stability in the whole banking industry and consequent reduction of systemic risk (Nier and Baumann, 2006), and effective tool for avoiding banking crises (Financial Stability Board, 2012). However, other Authors argue that there are some disadvantages related to the excessive disclosure due to the complexity of financial instruments because markets are unable to incorporate additional information in a beneficial way (Hodder et al., 2001; Hassan et al., 2009; Hassan and Mohd-Saleh, 2010; Siregar et al. 2013). In addition, banks often oppose to requirements asking for higher disclosures because they determine significant costs (Mozes, 2002, Gebhardt, 2004). In order to respond to the aforementioned situation of crisis, the International Accounting Standards Board (IASB) has issued the IFRS 7: Financial Instruments Disclosure, an ad hoc accounting standard which identifies the minimal disclosure requirements that entities must meet to communicate to investors the risks arising from financial instruments used. The value relevance of financial instruments risk disclosure is an important key factor for a transparent relationship between banks and stakeholders, in particular investors, because, first of all, the last financial crisis has revealed the weaknesses of the European banking system and related disclosure; secondly, banks’ regulatory framework is complex, so it is possible to detect cases of information opacity, because it is formulated by a range of different bodies (i.e. local banking authority, Basel Committee and European Banking Authority - EBA); lastly, a gap in the literature of the relevance of financial instruments risk disclosure in the banking sector exists. On this basis, the aim of this thesis is to test the value relevance of the financial instruments risk disclosure (FIRD) from the users’ perspective, as recommended by the IFRS 7 in the European banking sector. In particular, UK, Germany, Italy, Spain and France are investigated because they are countries with highest capitalization in Europe from 2007, year of IFRS 7 entry in force, to 2014, last year available. Final results show that only qualitative index has a positive effect on banks’ value, meaning that qualitative disclosure recommended by IFRS 7 is value relevant. Maybe qualitative information can be easily found because it is supposed to have a clearer language (Pucci and Tutino, 2012). Instead, the quantitative disclosure index is not relevant for investors because of uncertainty, multi-person settings with conflicts of interest, and information asymmetry.

PurposeThis paper aims to analyze the determinants of the readability non-financial disclosure prepared under the Directive 2014/95/EU in the agrifood and beverage sector.Design/methodology/approachTo reach this goal, an ordinary least squares (OLS) regression model is proposed employing readability and governance variables. The sample is based on European agrifood and beverage listed firms that exceeding 500 employees and are considered public interest entities, including 744 firm-year-observations from 2017, first year after the Directive entered in force, to 2020, last year available.FindingsThe authors' results suggest the importance of corporate governance mechanisms as drivers in reaching more readability of non-financial information.Practical implicationsThis study provides useful suggestions to policy makers and managers for a better understanding of the role played by some factors on non-financial information (NFI) readability. Moreover, findings may help regulators in confirming that the establishment of a Corporate Social Responsibility (CSR) committee is a step in the right direction to strengthening firms' NFI readability. Lastly, this is beneficial for auditors and preparers who will pay more attention to the internal factors that can push for more (or less) understandability of NFI.Originality/valueThis research contributes to the academic and practical debate because it adds new insights into the literature on NFI readability and represents fertile area for future researches.

This study aims to understand whether the disclosure provided by the Integrated Performance Plans (IPPs) issued by Italian State Universities is substantive or for-mal. In particular, this research, using the interpretative lens of Middle Range The-ory (MRT) by Habermas, investigates the level of interrelationship that exists be-tween the different sections of the IPP (strategic planning, organizational perfor-mance, risk analysis, transparency and anti-corruption, and individual perfor-mance) and it verifies the degree of disclosure thoroughness contained in these dif-ferent sections. Analysing a sample composed by the last IPP published by 66 Ital-ian Universities and adopting a meaning-oriented content analysis, final results show that although the findings show a generally positive level of information, in the preparation of the Plans a prevalent attitude of formal compliance with the law seems to persist. As the meaning-oriented content analysis has shown, in most cases disclosure is used by Italian universities for essentially symbolic purposes. The analysis offers the chance for a twofold contribution to theory and practice. Firstly, it expands the theoretical debate offering newer insights on how infor-mation is disclosed and the factors influencing disclosure behaviours towards spe-cific accountability purposes. Secondly, it presents interesting practical and policy-making implications, suggesting them to pay effort in designing solutions to ease the substantive operationalization of holistic systems, not fully achieved yet. .

PurposeThe purpose of this paper is to deepen the countervailing relationship between control and innovation in knowledge-intensive complex organizations. It adopts a middle range theory perspective (Broadbent and Laughlin, 2013) to explore how control systems and innovation dynamics interact and shape each other in the contexts of high complexity and intensive knowledge creation.Design/methodology/approachThe paper employs single case study of a research-intensive biotech network located in Southern Italy, focusing on the change in the management accounting practices fostered by evolving environmental conditions and regulations that the network has faced in recent years.FindingsThe paper finds out how successful organizational changes are facilitated by the implementation of innovative control devices, favoring informal collaborative relationships, which in turn contribute to further innovate and to share knowledge and capabilities within the organization.Practical implicationsThe findings are relevant to all organizations involved in complex processes of co-production of knowledge and innovation. They allow for unpacking the “black box” of the interplay between innovation and control, which is becoming increasingly central to these organizations and to policy makers.Originality/valueThe value of the study lies in its ability to depict how contrasting and molding forces in control systems and innovation dynamics contribute to re-shape a complex organizational setting. The study offers a newer perspective of analysis to interpret the role of control systems in innovative networks, thus contributing to the growing academic debate on the antecedents and facilitators of knowledge sharing and knowledge integration.

Purpose The purpose of this paper is to develop a model for assessing the audit evidence of the going-concern (GC) assumptions underlying the preparation of financial statements. Design/methodology/approach This research analyses 678 audit opinions of Italian listed firms from 2007 to 2016 and uses a multiple linear discriminant analysis to create a GC score, which includes variables suggested by the international standards on auditing (ISA) 570 and by literature on GC. Findings The model provides three cut-off scores which can orient auditors towards issuing the most appropriate GC audit opinions (unmodified opinion, unmodified opinion, which includes emphases of matter, qualified opinion or disclaimer of opinion). Research limitations/implications The development of the model is mainly based on public data and does not assess confidential information that is not disclosed in audit opinions. Practical implications This model can enable auditors to identify the most appropriate GC opinion and align auditor’s opinions in similar circumstances, thereby reducing their reliance on discretion and increasing the reliability of their judgement with a higher degree of accuracy. Moreover, this research lists additional events or conditions that may individually or collectively cast significant doubt on GC assumptions. Originality/value This study goes beyond the traditional decision-making process, apparently binary in nature, between “continuity” and “failure” or between “unmodified” and “modified” opinions. It is conceived to detect the different degrees of uncertainty that affect GC evaluations to orient auditors’ professional judgements.

This study investigates the effects of firm and country factors, considered as determinants of the financial instruments risk disclosure (FIRD) proxied by IFRS 7 in the European banking system. We select 582 banks-year observations based on the largest five European economies (France, Germany, Italy, Spain and the UK) as provided by the International Monetary Fund (IMF). Our analysis covers a period of 8 years (2007-2014) and adopts an OLS model. Results show that both firm (the type of auditor, board size and profitability) and country factors (financing environment, regulatory environment, and organizational status) affect FIRD. Limitations for this paper could relate to country selection, as well as on the breadth of the sample. Nevertheless, these aspects could unveil possible areas of future inquiry. The contribution of the study is twofold. It enriches the literature about firm and country determinants on financial instruments risk disclosure, as combined rather than single-standing variables. Yet, it draws the attention of banks’ management and investors on what the crucial factors to reach an optimal level of FIRD are and gain the confidence of capital markets, reducing information asymmetries. This is the first empirical investigation on the determinants of FIRD, using IFRS 7, in the European banking sector that adopts firm and country factors in a combined effort.

The aim of this paper is to investigate the level of comparability of the IFRS 7 Financial Instruments Disclosure in banks’ annual reports across different European countries (Italy, Spain, France, Germany and UK) from 2007 to 2014. The banking sector seems to be particularly concerned with the issue of financial risks, especially during the most recent global financial crisis. In addition, risk disclosure has led to vigorous debates at both the national and international levels among scholars and standard setters. To test the comparability across countries, we use the van der Tas C index. Our results show that there is a medium level of comparability. Despite the accounting boards’ and authorities’ commitment to regulating this information, there are still substantial differences in the practices of risk disclosure, which have negative effects on comparability. Our results show that an increase in the degree of comparability exists during the observed period but we are still far from a condition of full comparability due to the presence of factors other than regulations that may affect accounting practices. These findings could be helpful for the decisions of institutional regulatory bodies and for investors.

Purpose The purpose of this paper is to analyse the impact of intellectual capital (IC) on the reputation and performance of Italian companies. Design/methodology/approach The paper exploits a unique data set of 452 non-listed companies that obtained a reputational assessment from the Italian Competition Authority (ICA). To test the hypotheses, this study implemented several regression analyses. Findings Results support the argument that human capital efficiency is a key driver of corporate reputation. Findings also reveal that companies, which obtained reputational rating under ICA scrutiny, show a positive relationship between IC elements and various measures of financial performance. Research limitations/implications The study focuses on a single country; it is not free from the imprecisions of Pulic’s VAIC model. Practical implications This paper recommends companies that are interested to achieve a robust reputation should consider the human capital as a strategic intangible asset. Second, the results suggest that companies with an ICA reputational rating are able to leverage their intangibles to potentiate performance and competitiveness. Originality/value This is the first empirical investigation on the contribution of IC in generating value for corporate reputation. Additionally, the study contributes to the literature on the link between IC and performance by examining a sample of firms not yet explored in prior research.

The aim of this paper is to investigate the entrepreneurial intention of Italian female students according to the Ajzen&rsquo, s Theory of Planned Behaviour (TPB). In particular, we analysed the women&rsquo, s intention to become entrepreneurs because the relevance of the female entrepreneurship phenomenon is a growing issue. Indeed, millions of women are involved in creating and operating enterprises, which suggests that women are an important engine of economic growth for developing countries. Using survey data from 441 Italian female students, we found that social pressure influences business students&rsquo, intention to become entrepreneurs. Focusing on female students, their intention is affected also by the perceived behavioural control. These results are of interest for policy makers and regulators in promoting entrepreneurial skills among young populations, with consequent reduction of the unemployment rate. Finally, this paper provides a new model that helps to understand the students&rsquo, entrepreneurial intentions based on gender role.