Less is More in the Age of Information Overload: The Paradigm Shift from a Shareholder- To a Stakeholder-Oriented Market

86 Pages Posted: 10 Jun 2019 Last revised: 23 Sep 2019

See all articles by Maria Lucia Passador

Maria Lucia Passador

Bocconi University - Department of Law

Federico Riganti

University of Turin - Department of Law - Chiar of Business Law; ESCP Europe Business School - Turin Campus

Date Written: December 16, 2018

Abstract

This paper aims to examine the innovations introduced by Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 and its transposition measures in Italy (considering the Legislative Decree No. 254 of 30 December 2016, and the recent regulation by the national Supervisory Authority) and in other European countries, as part of a wider research work on non-financial information statements (“NFSs”) and listed companies operating within the European markets. It is designed to verify the effectiveness of the tools offered, with the intent of developing a system which can (i) combine, also through the NFSs, long-term profitability, social justice, and environmental protection, and thus (ii) prevent risks to sustainability and (iii) increase the confidence of investors and consumers.

The article is structured in several parts, striving to examining the European regulation, focusing on the NFS comparative and Italian scenario, by offering a descriptive and empirical analysis of the matter, as well as offering some systemic conclusions, in particular with reference to social interest and to the most suitable way to disclose such information.

Ultimately, the paper is intended to provide the reader with a critical overview of the current non-financial information framework, as it applies at European and at Member State level. Nevertheless, in a forward-looking sense, this piece seeks to understand whether, and how, the issue of non-financial statements can actually (i) modify the actual corporate dialectic within companies required to disclose non-financial information; (ii) improve the accountability of such companies, as well as from the point of view of corporate social responsibility (“CSR”); and (iii) involve investors, primarily institutional ones, in the “life” of those companies which are subject to the NFS regime.

Keywords: disclosure, nonfinancial, corporate governance, securities, comply or explain, metastudy, reporting, materiality, ESG, sustainability

JEL Classification: K22, M48, M14, G3, G38

Suggested Citation

Passador, Maria Lucia and Riganti, Federico, Less is More in the Age of Information Overload: The Paradigm Shift from a Shareholder- To a Stakeholder-Oriented Market (December 16, 2018). New York University Journal of Law and Business, Vol. 15, No. 3, 2019, 567-651. Available at SSRN: https://ssrn.com/abstract=3382728

Maria Lucia Passador (Contact Author)

Bocconi University - Department of Law ( email )

Via Roentgen, 1
Milan, 20136
Italy

Federico Riganti

University of Turin - Department of Law - Chiar of Business Law ( email )

Lungo Dora Siena
100/A
Turin, Turin 10153
Italy
3441163334 (Phone)

HOME PAGE: http://www.dg.unito.it/do/docenti.pl/Show?_id=ferigant#profilo

ESCP Europe Business School - Turin Campus ( email )

Corso Unione Sovietica 218 bis
Turin, Turin 10100
Italy
3441163334 (Phone)

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