Papers by Silvia Testarmata
Since the introduction of New Public Management, a widespread reform of the whole accountability ... more Since the introduction of New Public Management, a widespread reform of the whole accountability system taking place in different countries around the world. A crucial aspect of the accountability reforms is the introduction of the accrual accounting in Central Government. A lot of countries apply the accrual basis accounting in their budgeting and reporting systems, even if there are broad differences in the implementation. However, the academic debate on accrual accounting is far from conclusion. In this paper, we systematically review the state-of-the-art of the debate on accrual accounting in public sector, highlighting the pillars of the accrual accounting. Accordingly, we propose a model of analysis for the financial accountability reforms in Central Government. Finally, we propose a research agenda to deepen the critical aspects and the unsolved questions with respect to the adoption of a full accrual accounting system in Central Government.
Conflict of interest could be a serious problem and may lead to fraud practices if it is not mana... more Conflict of interest could be a serious problem and may lead to fraud practices if it is not managed properly. The various remedies proposed by scholars and practitioners seem to assume that individuals and institutions have a very clear definition of what conflict of interest is and are fully aware of what are the different ways in which the phenomenon occurs, and its potential for harm. However, the term "conflict of interest" is used in many different and often inconsistent ways. Conflict of interest is still sometimes viewed as a crime. As a result of this pejorative or negative connotation, the term conflict of interest loses much of its utility in practice, especially in terms of fraud prevention. For that reason there is a need to clarify this concept, in order to better resolve the conflicts of interest when they cannot be avoided. We critically review the academic literature on conflict of interest for agents within firms. Then, we present an exploratory study, ba...
SIDREA Series in Accounting and Business Administration, 2022
Advances in Business Information Systems and Analytics
While more and more businesses incorporate sustainability in their core business strategy, there ... more While more and more businesses incorporate sustainability in their core business strategy, there has recently been a shift from corporate social responsibility (CSR) to the notion of creating shared value (CSV). This thesis investigates the emergence of new hybrid enterprises and innovative business models. Starting from a literature review about CSR and its evolution into the “Big Idea” proposed by Porter and Kramer, the chapter will analyse the link between business and society, especially in the developing countries where this link is stronger. The main aim is to identify the most effective business models that enhance the competitiveness of a company, while simultaneously advancing the economic and social conditions in the communities in which it operates. The general idea is that enterprises should have longer-term perspective on how they operate in relation to the external society and environment, addressing societal needs and challenges through the business itself, within a b...
This study reviews the emerging field of mandatory disclosure of non-financial information ( ) to... more This study reviews the emerging field of mandatory disclosure of non-financial information ( ) to develop insights into how research is developing, to offer a critique of the research to date, and to outline future research opportunities. The authors find that most published research presents normative arguments for and there is little research examining practice. Thus, the authors call for more research that critiques ’s rhetoric and practice. This study offers an insightful critique into an emerging accounting issue and widespread business practice. The research findings provide insights into future research needs on .
The diffusion of Public Agencies seems to characterise the approach to public management in Europ... more The diffusion of Public Agencies seems to characterise the approach to public management in European countries. Under New Public Management, the role of politics is to provide strategic planning and economic policy target definition, whereas the administration is responsible for the management of public services. Moreover, the separation between politics and administration is strengthened by downsizing and decentralizing the public central administration. The current paper argues that this split necessitates careful attention to the adoption of models of accountability that respond to both citizen and political information needs. Thus, with respect to public agencies, this paper models accountability levels, defines an accountability cycle showing the relations between politics, administration, and citizens, and applies this model to the Italian case.
Often board independence is defined in terms of conflict of interest (CoI), which, when “realized... more Often board independence is defined in terms of conflict of interest (CoI), which, when “realized” or “activated”, results in board opportunistic behavior. But the term “CoI” is used in many different and often inconsistent ways. Although a significant amount of research has emphasized the importance of board independence, there is a lack of studies investigating the different types of CoI (actual, potential and apparent CoI) that could affect both the board members behavior (impairing their independence) - even to those who are (often only formally) independent - and outsider observers’ trustworthy in respect of board members behavior. We try to fill this theoretical gap by identifying the directors’ CoI and suggest some criteria for assessing its severity. Identifying and assessing directors’ CoI is extremely important when we approach to the behavioral theory of boards, because CoI tend to impair directors’ judgment and will.
Accountability, Ethics and Sustainability of Organizations
This chapter deals with the new European Union Directive 2014/95 on non-financial and diversity i... more This chapter deals with the new European Union Directive 2014/95 on non-financial and diversity information (NFI Directive). The aim of the study is to explore the transposition of the NFI Directive in the leading European countries to understand what and how non-financial information is reported and verify whether the flexibility given to Member States in the implementation of the NFI Directive has implied that individual national interests prevail on achieving the success of NFI disclosure harmonisation. The research method is a multiple case study on the transposition of the NFI Directive in France, Germany, Italy, Spain and the UK. The comparison of the transposition laws indicates significant differences shape company obligations at the country level; however it appears that the harmonisation of non-financial reporting regulation in Europe has generally enhanced the consistency, transparency and comparability of NFI disclosed by companies and has improved corporate accountability to a large extent.
SIDREA Series in Accounting and Business Administration
Sustainable Business
This chapter reviews the field of Shared Value () to develop insights into how research is develo... more This chapter reviews the field of Shared Value () to develop insights into how research is developing, offer a critique of the research to date, and outline future research opportunities. The authors find that most published research presents normative arguments for and there is little research examining in practice. Thus, the authors call for more research that critiques 's rhetoric and practice. Thus, this chapter offers an insightful critique into an emerging management issue and widespread business practice. The research findings provide insights into future research needs on Shared Value.
Management Decision
PurposeThe purpose of this paper is to strive to close the current research gap pertaining to pot... more PurposeThe purpose of this paper is to strive to close the current research gap pertaining to potential implications of the blockchain (BC) for sustainable business models (SBMs) in the agri-food industry.Design/methodology/approachTo answer the research question, the authors utilised the Value Triangle framework by Biloslavo et al. (2018) in order to explore the potential innovation of BC for SBMs in the agri-food industry. Then, the authors apply it to an in-depth exploratory case study of the Placido Volpone winery. The authors draw data from strategic plans, annual reports, corporate website and a semi-structured interview with the winery's founder.FindingsThe authors show how BC technology could be a source of SBM innovation in the agri-food industry.Research limitations/implicationsBC technology has the potential to significantly change SBMs. Given the huge set-up investments by the industry, academic research investigating potential implications and supporting companies i...
Journal of Public Budgeting, Accounting & Financial Management
Recently many European countries have incurred crises in public finance despite the fact that EU ... more Recently many European countries have incurred crises in public finance despite the fact that EU institutions have pushed the national governments toward the sustainability of public finance with compulsory and voluntary rules regarding fiscal governance. This paper investigates the relations between the quality of fiscal governance and the financial virtuosity of national fiscal policy. We proposed a general framework for analyzing the fiscal governance issue and we empirically tested the correlation between the dimensions of fiscal governance and the budgetary performance of EU countries. The results showed a positive correlation between the quality of fiscal governance in the EU countries and financial surplus in the period concerned. However further investigations are needed and an effort should be made to collect uniform data on fiscal governance in the European Union.
Corporate Ownership and Control
This study investigates the impact of stock option plans, defined as share-based incentive contra... more This study investigates the impact of stock option plans, defined as share-based incentive contracts provided by companies to their employees, on the value relevance of accounting information. The purpose of this study is to analyse the extent to which the value relevance of accounting information is affected by the adoption of stock option plans. Using panel data, the empirical analysis shows that the value relevance of accounting information is affected by the adoption of stock option plans. They are seen by the market as a “cost” and not as an opportunity or an attempt to align different interests. In addition, the research results show that the market performance does not seem affected by the design of the stock option plans. However, the firm’s market performance appears to be more related to the structure of the stock option plans in companies with a higher market capitalization. Thus further research is needed to deeper investigate the impact of the design of the stock option...
Corporate Board: role, duties and composition
We propose a definition of directors’ conflict of interests (CoI) by critically reviewing the aca... more We propose a definition of directors’ conflict of interests (CoI) by critically reviewing the academic literature. Then, we present an exploratory study, based on a content analysis of the leading Italian listed companies that sought to empirically assess the directors’ CoI definitions provided by corporate codes of ethics. We found that despite the presence of CoI statement within corporate codes of ethics, CoI definition is often absent, when present it is not always clear, and differs widely among firms. The consequence is that CoI recognition could be not easy and remedies to prevent and resolve directors’ CoI lose their practical utility.
Corporate Ownership and Control
Stemming from value relevance research, this study investigates the ability of accounting and fin... more Stemming from value relevance research, this study investigates the ability of accounting and financial data to provide useful information about the economic value of the firm in trouble waters. Because the firm is at the center of a network of interests of many stakeholders, that put some expectations on it, the investors requires useful financial statements information in order to take rational investment decisions about financial instruments, such as equity and corporate debts. Academic literature define value relevant the accounting information able to change the expectations but also to induce a change in the behavior of the decision makers. To ensure that the accounting information reported in the financial statements are value relevant they need to be related to the company current value. The aim of this research is to study the usefulness of accounting information perceived by investors and to understand the process of allocation of resources in the capital market in trouble...
Dsi Essays Series, 2009
The European energy sector has gone through a period of significant change since the 1980s. Exter... more The European energy sector has gone through a period of significant change since the 1980s. External factors such as regulation, market competition, and technological innovation, as well as internal factors such as ownership, corporate governance, and culture, have affected the strategic positioning of local utilities providers. In this context, the paper aims at applying a new construct to the public utility sector-the business model meant as a new unit of strategic analysis-in order to better understand the strategic behaviour and competitive positioning of local utilities after the liberalization of the European energy market. As result of a multiple case study analysis, three main business models of local utilities have been outlined: traditional local utility, multiutility company, and global specialist company.
The business model seems to be a potential source of competitive advantage because it explains ho... more The business model seems to be a potential source of competitive advantage because it explains how a firm builds and uses its resources to create and capture value. However so far literature on business model and financial performance focus the attention on the "firm" as a unit of analysis without clearly define the boundaries of the economic entity to which they refer. The purpose of this paper is to answer the following research questions: what are the boundaries of the business model of dependent firms (i.e. firms that belong to the same business group)? How can be interpreted the relationship between business models and financial performances of those firms?. We use an exploratory multiple case study analysis of two Italian business groups. The analysis shows that business model of an affiliated-group company could be autonomous, partially autonomous or totally dependent on the business model of the wider business group. In this latter case, we can also say that the affiliated-firm is delegated to realise a part of the business model of whole group, considered as a single economic entity. As a consequence, the business model of the whole group might affect the financial performance of the dependent economic entities. Thus, the effort to study the relationship between business model and financial performance could be strongly biased if the boundaries of the underpinned economic entity are not clearly defined.
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Papers by Silvia Testarmata