Stakeholder Engagement in Mandatory Non-Financial Reporting: First Results for First-Time Reporters in Italy

22 Pages Posted: 12 Nov 2019

See all articles by Barbara Borgato

Barbara Borgato

Parma University, Department of Economics and Management

Chiara Mio

Ca Foscari University of Venice - Department of Management

Pier Luigi Marchini

University of Parma - Department of Economics

Alice Medioli

University of Parma

Date Written: October 31, 2019

Abstract

This study aims to analyze the issue of Stakeholder Engagement (SE) in mandatory non-financial reporting (NFR) in Italy, also as element supporting the quality of non-financial disclosure. In particular, following previous research that demonstrated critical aspects with regard to this issue in the first reporting period (2017 fiscal year), this paper explores whether and how an activity of SE has been performed and disclosed by first-time reporters in the second year of the application of the law.

A SE Score is proposed to assess the level of SE disclosed by Italian companies that, before the transposition of the European Directive 2014/95/EU, did not communicate voluntarily non-financial information. In addition, the effect of board characteristics and strategic posture on the level of SE disclosed is examined.

The study shows that the level of SE is positively affected by board independence and active strategic posture (represented by social and environmental certifications), while board size is negative related to the result of the SE Score.

To the best of authors knowledge, this is the first research that explores in depth the issue of SE in mandatory NFR in the Italian context, testing the impact of possible determinants.

This study provides some insights for companies and policy makers and extends previous literature on both SE and mandatory NFR.

Keywords: Stakeholder Engagement, Non-Financial Reporting, Mandatory Non-Financial Reporting, First-Time Reporter, Corporate Governance, Board Characteristics, Active Strategic Posture

JEL Classification: M14

Suggested Citation

Borgato, Barbara and Mio, Chiara and Marchini, Pier Luigi and Medioli, Alice, Stakeholder Engagement in Mandatory Non-Financial Reporting: First Results for First-Time Reporters in Italy (October 31, 2019). Available at SSRN: https://ssrn.com/abstract=3479186 or http://dx.doi.org/10.2139/ssrn.3479186

Barbara Borgato (Contact Author)

Parma University, Department of Economics and Management ( email )

Via J.F. Kennedy, 6
Parma, 43125
Italy

Chiara Mio

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

Pier Luigi Marchini

University of Parma - Department of Economics ( email )

Via Kennedy n.6
Parma, 43100
Italy
+39 0521 032389 (Phone)
+39 0521 032353 (Fax)

Alice Medioli

University of Parma ( email )

Via Amendola 10
Parma, 43100
United States

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