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This paper - aiming at encouraging a fruitful debate - intends to highlight the discontinuous evolution of the accounting solutions explored by notable bodies (Efrag-Oic, Iasb, Fasb, Kasb, etc.) with reference to transactions involving businesses under common control. The work finally recompose them in two basic categories (discussing their pros/cons as well), here analyzed: acquisition-type accounting, which emphasizes fair value (emergence of exchange or current amounts) vs. merger-type accounting, linked to historical costs (continuity values approach). The first cluster includes the pure-acquisition and the fresh-start method, whereas the second the predecessor basis and the pooling of interests techniques. The concrete identification of the proper methodology, in this regard, essentially requires the profound understanding of the underlying economics, architecture and key elements of a specific transaction shedding light on the most relevant and reliable information useful to stakeholders.

This paper contributes to existing literature on open market share repurchases in Italy by studying authorisations that the board of directors needs to obtain from the shareholders’ general meeting in order to acquire company’s own shares. In such a context, I investigate whether the buyback purpose that managers disclose in their report affects number of shares to be repurchased. Particularly, since managers could potentially benefit from share repurchase programmes carried out in the presence of stock option plans, I explore whether this motivation influences the number of shares they require to include in the buyback programme. In pursuit of my objectives, I analyse reports managers provide shareholders’ meeting to obtain the authorisation to acquire company’s own shares over a 6-year period (2004-2009) in Italian listed companies. Main results suggest that the buyback motivation affects number of shares managers intend repurchasing, highlighting the role of the quality of the board of directors in this issue.

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users’ decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users’ decision process, although it statistically affects Italian listed entities’ performance.

This paper analyzes the information asymmetry between owner/manager and lenders. More specifically, the research investigates the role of corporate governance mechanisms in reducing the agency costs of debt. The findings show that lenders perceive higher agency costs of debt if the controlling shareholder owns a percentage of capital greater than 66%. Results also show that the presence of independent directors elected by minority shareholders on the board mitigates the agency conflicts between borrowers and lenders. In the same way, the audit committee independence reduces the agency costs of debt. Moreover, the study shows that when the audit committee chairman coincides with the board chairman banks perceive more risk and, therefore, a bigger asymmetry. This coincidence increases the concentration of power in the hands of just one person and this enhances the likelihood of opportunistic actions by the management that could damage lenders. This means that it is costly for companies to concede to just one person too much influence over the board activities, because it reduces the effectiveness of the monitoring role played by independent directors, increasing the information asymmetry between borrowers and lenders.

Applicants for habilitation to Associate and Full professor in Economia Aziendale has during two years been evaluated by a commission, containing four Italian professors and one international professor. Me, being the international evaluator, present here some of my observations and impressions from the evaluation and present some reflections about the evolution of the Italian academic system and the subject, Economia Aziendale. My main conclusion, that the tradition of the subject is, at least in the short run, at threat due to the push towards internationalisation, could be regarded as rather pessimistic. But it is also a call for governed development, which should benefit all of us in the area, the whole international community.

Focusing on the Italian power system, the article examines how the national regulatory framework has been modified to effectively accommodate and further increase the share of renewable energy in the energy mix while preserving system reliability. This paper argues that operational changes and regulatory measures adopted so far, which are mainly directed to create a level playing field between different energy sources, constitute a short-term response, and thus of limited effectiveness while increasing cost for consumers. To intensify the de-carbonization process of the Italian power system a more fundamental revision of the current market design is required. In this view, an essential ingredient is the future expansion of the electricity grid starting from a clear recognition of energy mix that we intend to reach in the mid/long term.

Since 2000, there has been a noticeable progress in social and economic indicators of Peru. Even though the country risk has diminished dramatically, several threats remain. One of the key ones is the possibility of involuntary (transitory or permanent) interruptions of the natural gas pipeline transportation system. Given the significant endowments of natural gas reserves in Peru (Camisea gas field) and its relevance in the economy, shortages of natural gas due to pipelines failures can wreak havoc because it is important from the government revenue and it is a basic input for domestic manufacturing and household energy consumption. Earthquakes, unexpected social unrest or intentional actions could interrupt the service of some of the fundamental pipelines of the grid. One pipeline with three branches connects the upstream to the distribution centers. To take into account the economy wide impact of the interruption of gas supply we built a CGE model considering modifications of relative prices, markets reactions and income effects. We simulate different scenarios considering the three most important branches of the Camisea pipeline. The results show that those shocks would represent an important decline of GDP in the short run when substitution is limited (about or 0.2% by day) and an abrupt reduction of welfare for households. The estimated daily cost is in the range of 335 million of USD for the worst case scenario.

Power utilities are raising their investment in smart grid sector because of the increasing demand for electric power, aging transmission and distribution infrastructure, and the requirement for real-time visibility of energy supply and demand to optimize service reliability and cost. The smart grid technologies, smart grid regulatory policies and tariff designs should be formulated in a reliable, efficient and innovative manner for the sustainable expansion of the smart grid globally. All the technologies provider and Electric Regulatory commission policy makers have to work hand in hand to realize this goal. Favorable regulatory policies and utility restructuring control the dynamics of electricity market will promote the smart grid and green energy technologies. Power sector innovative regulations and tariff designs are progressively getting more concerned with network users, both traditional and new, with the mutual aim to stimulating more active participation. Preferential transmission tariff to promote integration of renewable energy sources is also a practical need of the present power sector. In this paper, we are trying to review the critical components of smart grid technologies, preferential regulatory policies and smart grid related tariff designs which would assist in sustainable expansion of the smart grid globally.

Two intriguing circumstances have characterized the behavior of energy markets in the first years of 21st Century: a sharp increase in oil prices without a clear impact on real economic activity and a relative stagnation of energy productivity after 30 years of continuous improvement. This paper uses a standard macroeconomic production function to show that these two circumstances are consistent with sharp global increase in coal production and consumption. Our results suggest that the strong shift in coal production in the period 2000-2007 can explain why the sharp increase in oil prices did not impact negatively global activity and a relative stagnation in energy productivity. In addition, the paper also highlights the shift in the energy mix towards coal and natural gas and alerts that these fuels, and not only crude oil, can be sources of macroeconomic shocks in the future.