RISULTATI RICERCA

Purpose: Economic uncertainty affects mergers and acquisitions (M&As); however, there is limited evidence regarding its effect on the propensity to acquire privately held versus publicly traded companies, as well as how institutional factors influence such decisions. I hypothesize that economic uncertainty and financial market devel-opment influence the preferences for the type of acquisition targets. Design/methodology/approach: Using a sample of European M&A transactions and employing both measures of economic uncertainty and the uncertainty spike re-sulting from the pandemic, as well as the degree of financial market development, I test whether these factors are associated with the frequency of acquisitions involving privately held companies, further distinguishing between stand-alone private firms and subsidiaries. Findings: My analysis indicates that, under market uncertainty, acquisitions of pub-licly traded company diminish, while transactions involving privately held compa-nies increase. Furthermore, I demonstrate that the COVID-related spike in uncer-tainty generates an additional effect beyond general economic uncertainty. I also find that the positive association between uncertainty and acquisitions of privately held companies particularly applies to stand-alone private firms rather than subsidiaries. My findings also reveal that acquisitions of private companies are more likely in financially developed markets. Originality/value: This study contributes to the literature on the effects of economic uncertainty on M&As by highlighting the importance of uncertainty in shaping the relative frequency of acquisitions involving private versus public companies, while also emphasizing the significance of institutional factors in influencing such prefer ences. Moreover, my research enhances the understanding of privately held firms, whose specificities have largely been neglected in the academic debate.

Purpose: This study examines whether SMEs located in municipalities that favor proximity to stakeholders are more likely to survive financial distress through debt restructuring. Drawing on the resource-based view of the firm, we hypothesize that proximity, as a form of social capital, is a crucial asset in times of crisis. Design/methodology/approach: This study employs a multivariate logistic regres-sion to analyze a sample of Italian private SMEs that underwent formal debt rene-gotiation between 2017 and 2019. Findings: The results of our analyses show that proximity significantly aids in re-solving financial distress through debt restructuring. Research limitations/implications: This study is limited to a single country. Future research could extend the analysis to multiple countries to explore the influence of different legal frameworks on the results. Practical implications: This study provides valuable insights for distressed compa-nies, highlighting the need to invest in stakeholder relationships to reduce the risk of failure. Originality/value: This study is the first to examine the proximity dimension of so-cial capital in the context of financial distress, highlighting the importance of stake-holder support as a vital intangible resource for recovery.

Purpose: This explorative study investigates the determinants of auditor choice in small private firms, leveraging an Italian regulatory change from 2023 mandating audits while allowing selection among different auditor types. It examines how au-ditee characteristics influence small entities’ choice between individual auditors, au-dit firms, and Big4 firms. Design/methodology/approach: Using a large cross-sectional data set of Italian small private firms subjected for the first time to mandatory audit, this study esti-mates a set of regression models to identify the client firm-level drivers of auditor selection. Findings: The results show that auditee characteristics such as firm size and com-plexity increase the likelihood of appointing an audit firm, particularly a Big4 one. At the same time, some governance-related variables (i.e., managerial ownership, ownership dispersion, external financing) are associated with selecting an audit firm. Most auditees opt for individual auditors, even in contexts where stronger external monitoring would seem more necessary. Originality: This study offers novel evidence on auditor choice in a setting where the appointment is mandatory, but firms can choose among different auditor types, highlighting how firm-specific characteristics and governance dynamics particular to private firms shape auditor choices. Practical implications: Oversight bodies may benefit from these results. The clear preference for individual auditors, even in contexts where stronger monitoring mechanisms could help in coping with agency problems, suggests that maintaining con-sistent quality standards across the market is important. Robust public oversight mechanisms applying uniformly to all auditors are essential to ensure audit quality and strengthen stakeholder confidence.

Purpose: This study investigates the relation between ownership structure and fi-nancial default in private firms, focusing on two key dimensions: ownership concen-tration - the share held by the top three shareholders – and institutional ownership – the share held by institutional investors. Design/Methodology/Approach: The empirical research augments traditional de-fault prediction model with ownership structure indicators, using an unbalanced panel of 28,562 Italian private firm-year observations from 2012-2019. Findings: The results show that ownership concentration has a significant positive association with default likelihood, while institutional ownership reduces the prob-ability of default. Further, I find that default prediction models including ownership structure variables have a higher predictive ability than the traditional default pre-diction model. Originality/Value: This study contributes to the literature on ownership structure and financial default by providing empirical evidence on private firms, a setting where market-based predictors are unavailable. It shows that ownership concentra-tion and institutional ownership systematically influence financial stability and im-prove default prediction accuracy. Practical implications: This study suggests that ownership structure indicators can be integrated into credit risk assessment and early warning systems, as promoted by recent European Union insolvency frameworks, to strengthen monitoring of finan-cially distressed private firms.

Purpose: This paper examines financial reporting incentives and behaviour among various private firm groups. The findings of prior research are mixed as to whether the managers of private firms make reporting choices that enhance earnings quality or just to minimize their tax burden. This study contributes a nuanced analysis of private firms’ characteristics, motives, and accounting choices among the European Commission’s recommended private firm classifications. Methodology: While most prior studies in this area consider private firms a homo-geneous group, we divide our sample of 76,588 Italian private firms into four (and two) size categories and compare reporting incentives and behaviour, as documented by existing literature, between these groups. Findings: We find strong evidence of differences in reporting behaviour between firms of different groups. Contrary to expectations, tax minimization does not seem to be the dominating incentive, even for smaller private firms and loss avoidance is prevalent in all groups. We find some evidence that larger firms try to build a reputation to respond to the demand for reporting quality from short-term creditors and minority shareholders but the pressure from long-term debt providers seems to mo-tivate managers to engage in opportunistic earnings management. We also find that smaller firms exhibit a more opportunistic reporting behaviour, although stakeholder pressures seem to affect them to a lower degree. Originality/value: These findings suggest that the diversity of private firms’ char-acteristics and incentives should be taken into consideration in future research on private firms. In other words, earnings management incentives differ notably be-tween private firms.

Purpose: Tax strategy affects earnings. However, little is known about how tax incen-tives affect accounting quality. Existing research suggests that firms are more likely to engage in earnings management (EM) when tax costs are lower and when tax minimi-sation motives prevail. We hypothesise that tax incentives mitigate EM activities. Design/Methodology/Approach: We exploit the implementation of the Hyper-De-preciation provision, a tax investment incentive provision within the Italian Industry 4.0 Plan. Our analysis examined private firms’ EM practices through panel regression and a difference-in-differences approach, comparing behaviour before and after the tax incentive enactment using a matched sample of Austrian firms as a control group. Findings: Our analysis indicates that private firms’ overall EM activity decreases fol-lowing the enactment of the incentive, with varying responses dependent on govern-ance structures. Firms that are closely held, i.e., managed by an owner-manager, re-main largely unaffected by the financial reporting implications of the tax incentive. Conversely, firms that are not closely held, experiencing different levels of stakeholder pressure, demonstrate a consistent reduction in earnings manipulation across various EM metrics. Originality/value: We provide novel insights into how tax incentives can influence accounting quality, an important yet understudied aspect of corporate taxation. We contribute to the accounting literature by demonstrating how governance structures can significantly influence firms’ responses to tax incentives in terms of EM. Practical implications: By highlighting the unintended consequences of tax invest-ment incentives, these findings have implications for policymakers when designing tax stimulus measures.

Purpose: This study examines how firms with no connections to Mafia organiza-tions respond to the tax avoidance and earnings management practices of mafia-con-nected peers, focusing on both industry and geographic spillovers. While prior re-search has documented the financial practices of mafia-connected firms, little is known about how their presence influences otherwise “clean” firms. Design/methodology/approach: We leverage a proprietary dataset from the Italian Internal Intelligence and Security Agency (AISI), which records individuals under investigation for mafia-related crimes. Using a large sample of private firms in the Lombardy region from 2006 to 2013, we examine how exposure to mafia-connected peers - measured at the industry and geographic levels - affects firms’ tax avoidance and financial reporting choices. Findings: We find that greater mafia presence is associated with lower effective tax rates among unconnected peers. Geographic proximity to mafia-connected firms is associated with increased tax-related restatements and income-decreasing abnormal accruals. We also document that unconnected firms in high-crime provinces show stronger tax avoidance responses, suggesting that broader criminal exposure ampli-fies the influence of mafia-connected peers. Originality/value: This study provides the first large-sample evidence of how orga-nized crime influences non-criminal firms’ tax and reporting strategies. Our findings contribute to research on financial reporting and tax avoidance spillovers. Future studies could explore broader implications, including investment and employment decisions. Practical implications: Regulators may benefit from enhanced anti-money launder-ing enforcement and transparency measures to curb organized crime’s economic in-fluence. Firms in high-risk regions should strengthen governance and auditing prac-tices to mitigate exposure.

Purpose: This study examines the impact of Italy’s 2008 interest barrier reform, which capped financing cost deductions at 30% of adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA), on the capital structure and tax strategies of private firms. It focuses on the differential effects across firm sizes, particularly small firms. Design/Methodology/Approach: Using a difference-in-difference design, the study compares private firms above and below the 30% EBITDA threshold. The analysis em-ploys robust matching techniques, such as the entropy balance method, to ensure com-parability between treatment and control groups and minimize selection bias. Findings: The reform reduced leverage in medium and larger firms, primarily through adjustments in long-term debt. However, smaller firms, constrained by financial inflexi-bility, increased their reliance on short-term liabilities. Furthermore, medium and larger firms maintained stable effective tax rates (ETR), while smaller firms experienced an increase. Originality: This study contributes to the limited research on private firms’ tax sensitiv-ity, particularly highlighting the structural disadvantages faced by smaller firms. It pro-vides novel evidence on how firm size influences responses to tax policy changes, ad-dressing a critical gap in the literature dominated by studies on public firms. Practical Implications: Policymakers should consider the unequal effects of tax reforms on firms of different sizes. Targeted measures could alleviate the disproportionate bur-dens on smaller firms, supporting their financial stability and competitiveness.

The study aims to identify the impact of global and national crises on the sustainability of companies in the example of manufacturing industries in Latvia and Ukraine. The study employed statistical analysis to identify the main trends and changes in global and national economic indicators that occurred due to the crisis. The correlation analysis was used to establish a link between these indicators and the sustainability of manufacturing companies in the studied countries. The obtained results show that global and national indicators, changes which may indicate the presence of crisis phenomena, are related to the sustainability indicators of companies. However, this relationship is not the same for countries with different levels of economic openness and different degrees of economic integration into global markets. Thus, the sustainability indicators of Latvian companies are more closely correlated with the values of global and national gross domestic product, inflation, unemployment, production. In general, the resilience of Latvian companies is higher than that of Ukrainian companies. In both Latvia and Ukraine, companies’ sustainability performance has been affected by the crisis, including the COVID-19 pandemic and the war in Ukraine. However, the war in Ukraine has had particularly severe consequences, including for the resilience of companies. Thus, the overall commercial profitability after tax, which was 10.11% in the country in 2021, fell to more than -3.24%. These results indicate the relevance of a study of the degree of influence of global and national trends in the process of assessing the sustainability of companies and may be useful for assessing the financial aspects of the sustainability of the manufacturing industry.

This article addresses the critical issue of human rights protection in digital environment, with the legal frameworks governing digital rights as a core concept. The main research questions examine key threats to human rights online and effectiveness of existing international and national mechanisms for safeguarding these rights. The study employs a comparative analysis of legal systems, specifically focusing evolving legal framework in response to the digital challenges in the EU, the U.S., and Ukraine, including the role of the Internet during the Russian-Ukrainian war. Using formal-legal and systemic methods, the research assesses the effectiveness of these regulatory approaches. The results reveal significant differences in protection of digital rights across the EU, the U.S., and Ukraine, highlighting gaps in enforcement and practical application. The findings contribute to the ongoing discourse on the need for stronger global collaboration in digital rights regulation and propose recommendations for enhancing legal protections in the digital sphere, particularly in Ukraine’s context. This research advances the understanding of how international legal standards can be integrated into national legislation, offering new perspectives for policymakers and legal scholars.

This study aims to investigate the Sustainable Consumption Behaviors (SCB) of young consumers in two contrasting countries: Germany and Colombia. A quantitative research design was employed to gather data from 326 young undergraduate students. Using a self-report scale based on Quoquab et al. (2019) scale. The findings reveal that consumers in Colombia demonstrate a higher concern for quality of life, environmental well-being, and the well-being of future generations compared to their German counterparts. This research shows that emerging market companies should promote sustainable products to build on existing positive attitudes. In contrast, in developed countries, companies need to invest more in education and awareness efforts to emphasize the importance of sustainability.

This paper evaluates the technical efficiency of agricultural sectors in EU and Ukraine using the Stochastic Frontier Analysis methodology. The analysis is based on factor income as the dependent variable and includes labor input, fixed capital consumption, utilized agricultural area, and intermediate consumption as key inputs. The findings reveal that EU countries on average operate under conditions of nearly constant returns to scale, while Ukraine exhibits increasing returns to scale but low efficiency due to underinvestment. The technical efficiency scores highlight significant disparities, with Western European countries outperforming Eastern counterparts. The results offer important policy implications for enhancing agricultural productivity and guiding investment strategies.

In the past two decades, sustainability has gained significant attention, influencing global agendas. This paper examines the relationship between Governance for Sustainability (GfS) and organizational dynamics through the lens of Work and Organizational Psychology (WOP). While existing literature predominantly focuses on macro-level governance, this study addresses the overlooked micro and meso levels. By exploring dimensions such as culture and leadership, it sheds light on critical issues for organizations navigating sustainable change. Emphasis is placed on the "human factor" and its connection to WOP. Implications for research and practice are discussed, with a focus on advancing the GfS field through WOP themes.

The authors investigate whether progress on the Sustainable Development Goals (SDGs) is associated with the magnitude of climate-related economic losses across European countries. Drawing on typological classifications, disaggregated SDG indicators, and Granger causality tests, the study explores dynamic interactions between development performance and climate-related vulnerability. While no stable correlation emerges across all cases, a pattern of reactive adaptation is observed in high-loss countries, where improvements in SDG 13 often follow damaging events. These findings underscore the importance of aligning development policy with climate resilience frameworks and highlight the need for stronger integration between long-term sustainability planning and risk governance strategies.

The viticulture sector shows growth potential but faces challenges related to labor shortages, productivity, and quality control. This paper examines various robotic technologies used in grape cultivation and assesses their suitability for addressing these issues. By analyzing the current state of the grape-growing industry and the potential benefits of advanced robotic solutions, this study aims to offer recommendations for integrating robotics to improve efficiency and sustainability.

The research provides an overview and comparison of agricultural robots designed for tasks such as harvesting, spraying, imaging, and adapting to climate change. It also considers the costs of these robots and the infrastructure required for their implementation. Additionally, recommendations are made for large, medium, and small-scale farmers, suggesting suitable robotic technologies based on their income from grape cultivation.