Template-type: ReDIF-Article 1.0 Author-Name: Massimiliano Bonacchi Author-Name: Marco Maria Mattei Title: Replication & re-examination of empirical research in corporate reporting and accounting Abstract: Classification-JEL: Keywords: Note: Pages:5-12 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76902&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002001 Number: 1 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76902 Template-type: ReDIF-Article 1.0 Author-Name: Nicola Dalla Via Title: The dynamics of cost behavior: Unveiling sticky costs in private companies Abstract: Purpose: While research on cost stickiness has predominantly focused on large public companies, the variability in results has cast doubt on the generalizability of sticky cost behavior to all companies. This paper investigates whether cost sticki-ness is observable in smaller private companies ? i.e., firms without publicly traded securities ? thus addressing a notable gap in the literature. Design/methodology/approach: This study adopts the empirical framework of Anderson et al. (2003), using data from private Italian firms from 1998 to 2022. Furthermore, it extends the scope of analysis to include such diverse cost catego-ries as selling, general, and administrative (SG&A) costs, total labor cost, purchase costs, rent costs, and other operating expenses. Findings: The findings indicate that SG&A costs in private firms are significantly less sticky than those reported for large public firms. Cost stickiness is also ob-served in labor, rent, and other operating costs but not in purchase costs. Notably, cost stickiness varies across industries. Originality/value: This study sheds new light into the dynamics of cost stickiness by highlighting how asymmetrical cost behavior in small and medium-sized pri-vate companies differs from that in large public companies, enhancing the under-standing of cost management practices across business contexts. Classification-JEL: M21, M41 Keywords: Note: Pages:13-46 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76903&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002002 Number: 2 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76903 Template-type: ReDIF-Article 1.0 Author-Name: Antonio De Vito Author-Name: Lorenzo Dal Maso Author-Name: Patrizia Petrolati Author-Name: Noemi Pecoraro Title: Does leverage create or destroy value in the long run? A re-examination of Nissim and Penman (2001) Abstract: Purpose: This paper explores the crucial role of financial statement analysis for equity valuation, reaffirming and extending Nissim and Penman?s seminal find-ings (2001). Design and methodology: We use a worldwide dataset comprising 82,481 obser-vations across 33 countries from 2005 to 2022 to provide updated benchmarks to Nissim and Penman?s (2001) findings and facilitate forecasting and valuation. Our methodology involves both cross-sectional and time-series analyses. The cross-sectional analysis aggregates financial ratios over all firms and years, while the time-series analysis tracks the median values of portfolios over successive five-year periods. Findings: Our analyses reveal that value creation and growth dynamics are intri-cately linked, with performance metrics significantly influenced by operating and Financial Leverage. The median Return On Common Equity (ROCE) and Return on Net Operating Assets (RNOA), spread, and net borrowing costs collectively indi-cate a generally positive leverage effect on firm returns. Additionally, our findings demonstrate the importance of differentiating between operating and financing assets and liabilities when assessing Financial Leverage. Contribution: Overall, the findings contribute valuable insights for managers and academics. They offer a deeper understanding of how leverage affects firm per-formance, which can inform strategic decision-making to enhance value creation. This paper extends the empirical foundation for equity valuation and financial forecasting, providing relevant benchmarks for financial analysis. Classification-JEL: G32, H25, H26, M41 Keywords: Note: Pages:47-76 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76904&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002003 Number: 3 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76904 Template-type: ReDIF-Article 1.0 Author-Name: Camilla Ciappei Author-Name: Claudia Frisenna Author-Name: Diletta Vianello Title: Do female auditors affect accruals quality? A replication and extension of Ittonen, Vahamaa, and Vahamaa (2013) Abstract: Purpose: This study aims to replicate the findings of Ittonen et al. (2013) on the relationship between female audit partners and accruals quality, which showed that firms audited by female partners had lower abnormal accruals. While their study focused on the Scandinavian context, known for its progressive gender norms, this research assesses the generalizability of their results by extending the analysis to Italy, a country with different cultural views on gender roles. Design/methodology/approach: Using an OLS regression model, this study analyzes Italian listed firms during the 2013-2022 period. We sourced financial data from Aida, provided by Bureau Van Dijk, and we manually collected audit partner names from corporate governance reports. Our final sample includes 1,068 firm-year observations from 232 firms. Findings: Our results are consistent with those of Ittonen et al. (2013), who found that female audit partners are associated with lower abnormal accruals. We observed similar results when including female audit committee chairs. No gender-based differences emerged in reducing income-increasing earnings management. However, female audit partners were associated with lower income-decreasing manipulations, indicating greater diligence and precision. Originality/value: We replicate the study by Ittonen et al. (2013) within the distinct cultural and legal framework of the Italian market, with a broad time period for analysis. Our findings underscore the importance of gender diversity in auditing and provide robust evidence for a different context. Future research can investigate other countries and factors affecting audit quality to further deepen the understanding of gender dynamics. Classification-JEL: M42, M14, G32, D81, J16 Keywords: Note: Pages:77-104 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76905&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002004 Number: 4 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76905 Template-type: ReDIF-Article 1.0 Author-Name: Francesco Capalbo Author-Name: Luca Galati Title: Elections and earnings management: Further evidence from Benford?s law Abstract: This study re-examines the extent to which municipally-owned entities (MOEs) en-gage in earnings management around the time of local elections. Design/methodology/approach: The study analyses the total revenue figures for 506 unlisted Italian MOEs from 2009 to 2014 using Benford?s law to detect signs of low data quality or manipulated numbers in financial statements. Findings: The findings reveal that entities owned by local governments engage in earnings management practices during pre-electoral seasons, which is consistent with the political cost hypothesis. Accounting numbers are rounded to the closest key cognitive reference point by overusing and underusing specific revenue digits. This aligns with the performance expectations hypothesis as well. Originality/value: This study adds evidence to the existing issue of earnings management in the public sector during elections by using a less conventional ap-proach, highlighting the need for increased transparency in financial reporting be-fore these critical periods. Practical implications: Auditors, forensic accountants, and judicial bodies that endeavour to protect public finances can also employ Benford?s law to scrutinise the financial statements of hybrid entities at such times. Classification-JEL: C12, D72, M41 Keywords: Note: Pages:105-132 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76906&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002005 Number: 5 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76906 Template-type: ReDIF-Article 1.0 Author-Name: Mario Daniele Author-Name: Elisa Raoli Title: Early Warning Systems for financial crises prediction in private companies: Evidence from the Italian context Abstract: Purpose: This study compares models for predicting business financial crises, fo-cusing on which are most effective. In light of the new European Directive on business failure, it highlights a trade-off between predictive accuracy and timeli-ness in static models and offers an alternative approach. Design/methodology/approach: This study examines the Italian early warning system (EWS), testing static alert indicators? predictive ability on a large sample of private companies. It then proposes a dynamic version of the EWS. Findings: The results show a trade-off between predictive ability and timeliness for static models. In contrast, a dynamic system is more accurate in predicting cri-sis events, allowing managers to take corrective actions. Originality: The results highlight the limitations of static prediction models and emphasize the potential of a simple dynamic model that is specifically designed for small- and medium-sized entities (SMEs). Practical implications: This study proposes a dynamic model tailored for SMEs, which are particularly vulnerable to financial crises. This insight can help managers and policymakers balance accurate predictions with timely interventions, especial-ly in European countries implementing crisis prediction models. Classification-JEL: G01, M4, M400, M410, M480 Keywords: Note: Pages:133-161 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76907&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002006 Number: 6 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76907 Template-type: ReDIF-Article 1.0 Author-Name: Michele Bertoni Author-Name: Paolo Candio Author-Name: Paola Rossi Title: Revisiting the impact of ESG on financial performance: Empirical evidence from the Italian Stock Exchange Abstract: Purpose: This paper re-examines the overall and pillar-level impact of the envi-ronmental, social, and governance (ESG) performance on the financial perfor-mance of companies listed in the Italian Stock Exchange market. By using the seminal paper by Velte (2017) ? which focused on the German context ? as the base comparison, we also test the moderating role of a firm?s characteristics on that association. Design/methodology/approach: We analyze data on companies listed in the Ital-ian Stock Exchange from 2010 to 2022, sourced from the Refinitiv Eikon plat-form, for a total of 650 firm-year observations. Correlation and regression anal-yses are conducted to evaluate the link between ESG and a series of financial per-formance indicators including the return on assets (ROA) and Tobin?s Q ratios. Findings: While neutral results are found for ROA, this study reveals that ESG per-formance has a positive impact on Tobin?s Q, in contrast to what was found by Velte (2017). However, we confirm that the governance pillar exerts the most sig-nificant effect on Tobin?s Q. Furthermore, the analysis of the firms? characteristics as moderating factors reveals that the risk and financial leverage of a company negatively influence the relationship between ESG performance and financial per-formance. Originality/value: This study contributes to the empirical literature on the associ-ation between ESG performance and financial performance by re-examining the study by Velte (2017) for a different period and different context. Moreover, we test for the moderating effect of the firms? characteristics on the relationship be-tween ESG and financial performance. Classification-JEL: M41, M14, G10 Keywords: Note: Pages:163-191 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76908&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002007 Number: 7 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76908 Template-type: ReDIF-Article 1.0 Author-Name: Davide Perina Author-Name: Riccardo Stacchezzini Title: Dialogue with standard setters The adoption of the ?EU Taxonomy?: Critical reporting and auditing challenges Abstract: Classification-JEL: Keywords: Note: Pages:193-203 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76909&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002008 Number: 8 X-File-Ref: http://www.francoangeli.it/Riviste/References.ashx?idArticolo=76909 Template-type: ReDIF-Article 1.0 Author-Name: A cura della Redazione Title: Book Review Abstract: Classification-JEL: Keywords: Note: Pages:205-210 Volume: 2024/2 Year: 2024 Issue:2 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=76910&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:Frfrfr:v:html10.3280/FR2024-002009 Number: 9