Francesca Manes Rossi

The board's role in risk disclosure: an exploratory study of Italian listed state-owned enterprises

The determinants of risk disclosure in the annual reports of listed state-owned enterprises (SOEs) have yet to be fully explored. This paper examines the potential impact of the composition of the boards of directors and other company-specific features on risk disclosure levels. The presence of women on a board made a significant difference to risk disclosure, as did the age of board members. Board directors having an accounting or finance/business qualification affected risk disclosure negatively; company size and an internet visibility were positively related to risk disclosure. Although an Italian study, the lessons here will have application to academia and to practitioners, policy-makers and standard-setters worldwide.

Harmonizing public sector accounting in Europe: thinking out of the box

A broad debate about the harmonization of public sector accounting standards in Europe is underway. The authors provide arguments in favour of harmonization, but they also acknowledge the existing pluralism and diversity by taking stock of the state of play in 14 European countries. The paper makes a proposal for a way forward for policy-makers and standard-setters, in which the benefits of harmonization can be obtained without obliging EU member countries to necessarily abandon their current public sector accounting systems.

The usefulness of performance reporting in local government: comparing Italy and Spain

This article presents a comparative analysis of the perceived usefulness of performance information by managers in local authorities in Italy and Spain. Italy and Spain have similar cultural and administrative characteristics and in both countries there are external requirements (from central government) to adopt performance indicators. The adoption of performance indicators was found to be almost symbolic in both states.

Intellectual capital in action: evidence from Italian local governments

Purpose Intellectual capital (IC) is attracting increasing attention from scholars and practitioners in the private sector, while research in the public sector is still in its embryonic stage, especially in regards to local governments. The purpose of this paper is to fill this gap by channelling conceptual and empirical findings from the large body of IC literature. Design/methodology/approach The research investigates IC in action in the local government domain. A survey has been carried out involving both managers and politicians of all Italian local governments (ILGs) with more than 40,000 inhabitants. In order to define the constituents of each IC dimension perceived by ILGs, principal component analysis was used in investigating the results. Findings Results highlights how IC components are perceived in ILGs: human capital is a combination of aptitudes in pursuing target performances, sense of ownership and motivations; relational capital is a combination of values, relationships and acts; structural capital includes procedures and routines supporting the decision-making process, the ability of achieving objectives and handling changes. Research limitations/implications While the research findings are limited due to being based on a survey in a single country, they present opportunities for future research regarding further testing of how IC is perceived in LGs in different context. The conclusion could be beneficial also for standard setters, providing a path to support the IC disclosure by LGs. Originality/value The paper contributes to a narrow strand of research – IC in LGs – adding new knowledge in “IC in action” research stream.

Analysis of Solvency in Italian Local Governments: The Impact of Basel II

This paper proposes a classification model of the Financial Reporting of Italian Local Governments (ILGs) and a grid of indicators supporting financial analysts in their solvency ratings. Due to their increased financial autonomy, ILGs increasingly need to resort to various forms of borrowing. However, the Basel II agreement requires financial institutions to carry out a thorough assessment of the creditworthiness of all potential borrowers, including ILGs. After reviewing the main criteria adopted by rating agencies for their analyses, this paper focuses on the assessment of the financial situation and debt position of ILGs. Such entities use a “financial�? accounting system based on commitment and ascertainment, to which the cash flow analysis model provided by IPSAS cannot be applied. The proposed classification model and the relevant grid of indicators were applied to the local ILGs, differing in size but located in the same area, in order to test whether these tools could provide a thorough assessment of the financial situation of any LG. Finally, the study proposes an equation to define the maximum degree of indebtedness for an LG, in compliance with the limits set by the current regulations in Italy.

Identifying future directions for IC research in education: a literature review

It is important to have a literature review to open any special issue as a way of introducing the state-of-the-art topics and link past research with the papers appearing in this special issue on IC in education. The paper aims to discuss this issue.,This research uses the structured literature to investigate the state-of-the-art and future directions of IC literature in education. In total, 47 articles are explored including nine from this special issue.,IC in education research is concentrated in Europe and mainly addresses IC in universities. Additionally, current IC research is progressing by examining IC practices inside universities using a third-stage IC approach, with new research also concentrating on third-mission outcomes, thus there is scope to continue IC and education research beyond universities. IC in education can also expand into fifth stage IC research, which abandons the boundaries of the educational institution and concentrate on the impact of IC and education on multiple stakeholders.,Current IC in education research is too narrow and mainly investigates IC in European contexts using case study methodology. However, there is ample scope to widen research that develops new frameworks in different educational and country contexts using a wider range of research methodologies. IC in education needs to expand its boundaries so it does not lose its relevance, and thus be able to contribute to wider policy debates.,This paper presents the current state-of-the-art structured literature review of the articles investigating IC in education.

Online sustainability information in local governments in an austerity context: An empirical analysis in Italy and Spain

Purpose – The purpose of this paper is to analyse and compare how austerity has influenced online sustainability information in Italy and Spain. Design/methodology/approach – The authors relate austerity policies to online information in order to ascertain whether austerity plays a role in the financial, organizational, social and environmental information disclosed on local government (LG) websites. The research has been conducted by analysing the websites of all Italian and Spanish LGs with more than 100,000 inhabitants. Findings – The results show that institutional and legislative pressures, as well as austerity measures, have played a relevant role in the increased production of information by LGs, although not all information is fully provided. Originality/value – The results may be of interest to managers and politicians as a stimulus to increase the flow of information. They may also be useful to policy makers, regulators and other stakeholders in order to foment environmental information.

Advancing Performance Measurement: Italian Local Government vis-à-vis the IPSASB Project

Purpose - – The purpose of this paper is to analyse the implementation of performance measurement tools by medium-to-large size Italian Local Governments (ILGs) with the aim of establishing their position in comparison with the content of the International Public Sector Accounting Standards Board’s (IPSASB’s) Consultation Paper (CP) on Reporting Service Performance Information and the points of views of other countries. Design/methodology/approach - – A survey of all ILGs with more than 50,000 inhabitants has been carried out with the objective of evaluating which kind of performance management tools are implemented; moreover, these results are compared with the content of the IPSASB’s CP to evaluate the role of this guide as well as the main differences between the IPSASB’s approach and the current situation in Italy. Findings - – Data collected highlight that several performance measurement tools required by law are generally prepared in ILGs even if a limited use of them for decision-making or accountability purposes occurs. Moreover, in accordance with the opinions of the countries that submitted letters of comment to IPSASB’s CP, Italian results reveal that information on the scope of the service performance information, on the entity’s objectives and their achievement, including a narrative discussion of this achievement, are perceived as relevant. Originality/value - – The research investigates the future development of the CP by analyzing the points of view of the countries that submitted letters of comments to IPSASB. It also examines whether the current Italian situation is in line with the IPSASB’s position.

IPSASB’s Conceptual Framework: Coherence with Accounting Systems in European Public Administrations

Accounting and reporting systems in public administrations of European countries have deeply changed in the last 20 years due to the new public management wave and the trend toward international harmonization. This research aims to examine the possibility of implementing International Public Sector Accounting Standards Board’s (IPSASB’s) Conceptual Framework (CF), by observing accounting and reporting systems in the different governmental levels of countries selected and taking into account the embedded traditional characteristics of European countries. Results highlight how many structural differences still occur within and among countries, showing that much work is still necessary to obtain harmonization as implied in the IPSASB’s CF.

Do Corporate Governance Characteristics Affect Non-Financial Risk Disclosure in Government-Owned Companies? The Italian Experience

While a considerable amount of research has already been carried out into the corporate governance determinants of non-financial risk disclosure in companies in the private sector, such determinants in the annual reports of listed Governmentowned Companies (LGCs) have yet to be investigated fully. This study attempts to complete the picture. Italian LGCs have been selected for analysis and agency theory has been applied in the public sector under the accountability paradigm. The research investigates whether non-financial risk disclosure provided in the Management Commentary (MC) of Italian LGCs may be affected by ownership concentration, corporate governance mechanisms and company-specific features. The issue is of particular importance in a country where Government intervention has significantly affected its economic development since the nineteenth century. Our findings show that there is a relationship between the level of non-financial risk disclosure and Board diversity, leverage and sector. Our findings also reveal some useful insights concerning policy makers and standard setters.