Alberto Mazzoleni

The Relationships between Companies and Bank System: An Analysis of Italian Context

The purpose of our research is to propose to model which could suggest to Italian small and medium companies the best appropriate funding resources to their economic and financial situation. The framework of this paper is represented by Giacosa and Mazzoleni (2016), in which a model classifies the companies into six groups according to different elements, such as attitude to repay financial debts, company’s growth, and profitability. The sample is composed of 39.400 Italian companies. In particular, companies could be divided in these categories: i) star companies; ii) companies at the beginning of decline; and iii) companies in crisis.It emerged that, in a medium-term vision, it’s necessary to change the management behavior and to try to reach economic fundamentals expected by the bank system, while in the short-term vision the companies have to learn how to use a non-bank financial instruments.

Company’s indebtedness trend for the growth andsurvival

The purpose of this paper is to verify the impact of a series of company’s variables in small and medium-sized companies, which affect their debts degree. We referred to Giacosa (2015) and Broccardo et al. (2016) as a framework, which identified some company’s variables which impact on its financial structure. Our sample contains small and medium-sized enterprises, belonging to the Italian manufacturing sector. The choice of the manufacturing context is linked to the fact that this sector is the one with the highest population in the Italian economic context and is therefore, a representative of the Italian economy. We identified a series of variables affecting the company’s indebtedness, working in a systemic perspective. Indeed, the company has been considered as a system, in which different factors have specific roles in the business (Ferrero, 1968, 1987) and are linked not through a simple cause-effect relationship; but through a sort of concatenation, and this relationship impacts on the debts recourse. In particular, by observing the survey of the reference sample, a relationship between main variables identified by the literature emerged that permits illustration of the company’s debts degree. Key words: Company’s indebtedness, debts degree, small and medium companies, financial structure.

Qualitative and quantitative components of a proposed model of effective recovery project for companies in crisis

An increased number of firms are affected by financial crisis and the crisis phenomenon is a very frequent occurrence in the lifecycle of a company. There are several objectives for this study. The first one is to identify the communicative and managerial role of qualitative and quantitative components of a proposed model of recovery project which Italian companies can adopt to overcome a crisis situation in a systematic manner. The second objective is to identify the companys behaviour to increase the firms credibility with stakeholders during the recovery phase. Due to the absence of a model of recovery project in Italian literature and corporate regulation, a proposed model of recovery project may equip management and their advisors to deal with the delicate circumstances of financial crisis and increase their chances of returning to business as usual; this is also thanks to a distinction between qualitative and quantitative components and their communicative and managerial roles. The recovery project has to be an inclusive document, including both a qualitative and a quantitative component on the crisis phenomenon and recovery process. In addition, the recovery project has to generate commitment from all parties on the recovery strategy, even adopting different behaviours towards various types of stakeholders.

A Model to Reduce Internal Auditing Risk in SMEs

The financial statement may not contain correct or truthful information and, as a consequence, stakeholders’ interests may be damaged. To avoid such risk, legislators have established certain obligations concerning the auditing of disclosures. The paper has a double objective. Firstly, the audit risk approach used by the auditors within a specific small and medium enterprise (SME) is analysed. Secondly, a theoretical model of the limitations of typical risks involved in the SME auditing process is created. According to the audit risk approach, audit risk can be seen as the union of different risk categories, which can be more or less directly influenced by the conduct of the auditor. Such risk components influence each other. Every risk component can be more or less influenced by the small size of a SME. A model for the reduction of audit risk in an SME depends on the typical factors of an SME and the attentive and efficient planning of the audit activity.