The Non-Financial Reporting Harmonization in Europe: Evolutionary Pathways Related to the Transposition of the Directive 95/2014/EU within the Italian Context

Caputo, Fabio; Leopizzi, Rossella; Pizzi, Simone; Milone, Virginia

doi:10.3390/su12010092

Cited by 72 publications

(126 citation statements)

References 46 publications

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“…Several authors have discussed the limited effects of Directive 95/2014/EU on firms' reports. Specifically, many academics have suggested that the impacts on NFDs have been limited due to the absence of specific reporting requirements (Caputo, Leopizzi, Pizzi, & Milone, 2019;Doni et al, 2019). La Torre et al (2018) have observed that the lack of specific requirements for reporting standards constitutes main criticism of Directive 95/2014/EU.…”

Section: Directive 95/2014/eu: a Brief Overviewmentioning

confidence: 99%

“…However, the length of the nonfinancial statements could also be a signal of high interest in sustainable practices. The cost of adapting to new reporting standards or methodologies is lower for firms that voluntarily disclose many kinds information than for firms with a low degree of interest to nonfinancial reporting practices (Caputo et al, 2019;Venturelli, Caputo, Leopizzi, & Pizzi, 2019). Vallelado, 2008;Kuzey, 2015).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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The revision of nonfinancial reporting directive: A critical lens on the comparability principle

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The launch of the European New Green Deal represents a strategic plan developed in Europe to favor the transition to more sustainable business models. One of the main initiative is represented by the revision of the Directive 95/2014/EU. This revision came in response to several criticisms of the directive's application to European Public Interest Entities, including the low degree of comparability that characterize the resulting nonfinancial declarations. This research paper analyzes how 70 Italian PIEs adhere to the comparability principle when preparing their nonfinancial declarations. Furthermore, a difference-indifferences analysis has been performed to assess the impacts of Directive 95/2014/EU on nonfinancial declarations' comparability. Our results highlight how the comparability of nonfinancial reports is an objective not yet achieved. In this regard, the revision of Directive 95/2014/EU will represent an opportunity for policymakers to address this critical issue.

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Section: Directive 95/2014/eu: a Brief Overviewmentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

The revision of nonfinancial reporting directive: A critical lens on the comparability principle

et al. 2020

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“…In Italy, the EU Directed was implemented through Decree 254/2016 (hereafter, the Decree) adapting it to the context (Caputo, Leopizzi, & Pizzi, 2020;Doni, Bianchi Martini, Corvino, & Mazzoni, 2019;Mion & Loza Adaui, 2019;Muserra, Papa, & Grimaldi, 2019); The 2017 fiscal year was the first year of its application. In the same way as the EU Directive, Decree 254 does not specify how to report NFI, and by extension NF risks, but it does provide a way to relate NF risks (art 3, subsection 3) to the NF issues (art 3, subsection 1).…”

Section: From Voluntary To Mandatory Disclosure Of Nf Risks: the Eumentioning

confidence: 99%

Do investors value companies' mandatory nonfinancial risk disclosure? An empirical analysis of the Italian context after the EU Directive

2020

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In October 2014, the European Union adopted Directive 2014/95/EU (hereafter, EU Directive), mandating companies of a certain size to draft and publish corporate nonfinancial information (NFI) regarding society and the environment. In this study, we examine the mandatory disclosure of nonfinancial (NF) risks by listed Italian companies, as required by the EU Directive, focusing on both the state‐of‐the‐art of such disclosure and its usefulness for investors. For this purpose, the study adopts a two‐staged research approach; in the first stage, we employed a manual meaning‐oriented content analysis to investigate the NF declarations (NFDs) of the listed Italian companies that were obliged to disclose NFI, returning a quality NF risks disclosure index. In the second stage, we used the value relevance methodology to investigate whether the disclosed NF risk information affects the levels of equity prices, through a modified Ohlson model. Our research is one of the first to investigate the value relevance of mandatory disclosures of NF risks following the implementation of the EU Directive, in the Italian context. The research was carried out in 2017, the first year of the directive's application for listed Italian companies. The main findings support a positive association between NF risk information disclosure levels and companies' market value. Moreover, they provide evidence of a significant mediating effect of NF risk on the relationship between financial risks and market value.

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“…Likewise, it would be necessary to deepen the proposed SSMM by introducing measurable variables in quantitative and qualitative terms as proposed by the authors Venturelli et al [190], developing key performance indicators to measure the degree of implementation of sustainability as suggested by the authors Hristov and Chirico [191], or implementing "wellbeing indices" as suggested by Haavard et al [192]. Voluntary reporting of non-financial results that demonstrate the degree of compliance with the SSMM would also be welcome, as it contributes to generating 'trust among investors and improve company reputation', as stated by the authors Caputo et al [193].…”

Section: Limitations and Future Lines Of Researchmentioning

confidence: 99%

Sustainable Strategic Management Model for Hotel Companies: A Multi-Stakeholder Proposal to “Walk the Talk” toward SDGs

2020

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As we reach the fifth anniversary of the Declaration of the United Nations 2030 Agenda for Sustainable Development, the tourism sector responsible for over 10% of the world’s GDP still does not have an open-source, sustainable management criteria that would enable and empower them to “walk the talk” to contribute to the Sustainable Development Goals (SDGs). The purpose of this paper is to fill the gap in the social sciences and business management literature by providing a theoretical Sustainable Strategic Management Model (SSMM) proposal for the Fourth Sector (4S), Small- and Medium-sized (SMEs) Hotel companies (4S-SM-HCs), which are committed and have the will to contribute firmly to the 2030 Agenda. Based on their corporate purpose and aligned with the SDGs, this article provides a holistic proposal with a multi-stakeholder approach, adding the SDG perspective. Through a qualitative research methodology based on two focus groups in which the main stakeholders and the management team of the 4S-SM-HC under examination took part, a theoretical SSMM is co-defined so that the hotel company can make significant contributions to the five areas of the SDGs. Basing their structure on the internationally recognized Global Sustainable Tourism Council (GSTC) Criteria and co-created through social learning, this SSMM proposes four strategic management axis and develops ten principles of ethical performance (PEP). The main contributions of this article are two: (1) to provide an ecosystemic SSMM proposal to the 4S-SM-HCs to allow them to make significant contributions to the SDGs, and (2) to facilitate a methodological framework with a multi-stakeholder approach and SDG perspective to enable them to contribute to the wellbeing of people, the community and the planet.

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The Non-Financial Reporting Harmonization in Europe: Evolutionary Pathways Related to the Transposition of the Directive 95/2014/EU within the Italian Context

Cited by 72 publications

References 46 publications

The revision of nonfinancial reporting directive: A critical lens on the comparability principle

The revision of nonfinancial reporting directive: A critical lens on the comparability principle

Do investors value companies' mandatory nonfinancial risk disclosure? An empirical analysis of the Italian context after the EU Directive

Sustainable Strategic Management Model for Hotel Companies: A Multi-Stakeholder Proposal to “Walk the Talk” toward SDGs

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