Vera Palea

Università degli Studi di Torino | UNITO · Dipartimento di Economia e Statistica "Cognetti de Martiis"

Over time, investors have become increasingly aware of the risks associated with a transition to a low-carbon economy. This study investigates the association between carbon emissions and the cost of debt financing for a sample of firms from the Eurozone in the period 2010-2018. Results provide evidence that the risk premium required by lenders inc...

The process of financialisation has been extensively studied and several stylised facts identified. Short-termism is one of these. This article analyses the role that changes in accounting rules have played in increasing short-termism in company management. Our study considers the adoption of the International Financial Reporting Standards in the E...

While the Circular Economy (CE) is considered a critical tool for addressing environmental degradation, its economic consequences have not received much attention yet. This study fills this gap by investigating the effect of CE strategies on key corporate profitability indicators, debt financing and stock market valuation. Our analysis focuses on a...

Purpose This study aims to investigate the relationship between banks’ corporate social responsibility (CSR) mechanisms at the governance level and their likelihood of pursuing green product strategies. It also examines how CSR characteristics and green product strategies have evolved across regions and time. Design/methodology/approach Using a sa...

The automotive industry is one of the most polluting manufacturing industries and one of the most important in terms of the workforce employed. Therefore, understanding the impact of climate change on this industry is of interest to policymakers, capital providers, and managers. To this end, this study provides insights into the financial impact of...

Sustainable development along with social market economy represent two founding values of the European Union (EU) as set out by the Lisbon Treaty. Retooling the economy according to these objectives requires a thorough rethinking of the role of business in society. This article highlights that the entity view of the firm is the only one consistent...

Karthik Ramanna in ‘ Unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism ’ considers how the Financial Accounting Standards Board (FASB) justified a conjunctural break from historic cost accounting (HCA) to Fair Value Accounting (FVA). Karthik’s paper explores how the US Financial Accounting Standards Board (FAS...

In capital markets, the investment decision-making process is vastly influenced by accounting information. This paper addresses equity investment valuation through market multiples and its consequences in investors’ financial statements under fair value accounting principles. After replicating the valuation process through the most used market mult...

L’interesse verso assetti produttivi compatibili con la tutela dell’ambiente, con un maggiore equilibrio sociale e con adeguate prassi di governance rappresenta una necessità vieppiù sentita dalle banche, incoraggiate a perseguire simili obiettivi da una regolamentazione sempre più pervasiva e dalla crescente consapevolezza di investitori e clienti...

Purpose The purpose of this paper is to discuss whether fair value accounting fits for long-term equity investments, which are considered key to retool economies according to sustainability criteria. In doing so, the paper focuses on the European Union and addresses the European Commission’s (2018a) concern that current accounting rules are unfit f...

Climate change is causing substantial structural adjustments to the global economy. Several sectors, such as coal and steel, are undergoing severe problems related to the inevitable transition to a low-carbon economy, while others such as renewables and new environmental adaptation technologies are benefiting substantially. In this context, regul...

RISK MANAGEMENT MAGAZINE Anno 15, numero 3 Settembre-Dicembre 2020

Over time, investors have become increasingly aware of the risks associated with a transition to a low‐carbon economy. This study investigates the association between carbon emissions and the cost of debt financing for a sample of firms from the eurozone in the period 2010–2018. The results provide evidence that the risk premium required by lenders...

This paper focuses on fair value measurement under the IFRS 13 assumptions and the reliability of the market and transaction multiples evaluations (“Level 2” methods). We test the reliability of multiples evaluation approaches in different economic sectors, by comparing the fair value of 1678 companies estimated by multiples with the effective mark...

By adopting a political economy perspective to accounting, this paper provides an overall post-implementation assessment of International Financial Reporting Standards (IFRS) adoption relative to the European Union's (EU's) fundamental goal of sustainable development. The paper questions the consistency of the International Accounting Standards Boa...

This paper examines the relative costs and benefits of International Financial Reporting Standards (IFRS) adoption in the European Union by testing the ability of earnings computed under IFRS to predict future cash flows. The study considers the contribution of net income, comprehensive income and other comprehensive income to the usefulness of ear...

"Whither Accounting Research?" is the question raised by Hopwood (2007) in an essay documenting a growing sense of unease about the state and direction of accounting research. This paper addresses this question by focusing on the European Union, discussing the causes for a narrowing of topics and methods in research and proposing some remedies. Spe...

Accounting is not simply a metric; it is, rather, a calculative practice that shapes the socio-economic environment. To look at the substance of accounting standards alone is therefore sometimes inadequate.From a Continental European Union perspective, this paper provides a general framework that deals with the potential changes in society produced...

This paper discusses the effects of the adoption of IAS/IFRS in Europe on the quality of financial reporting. In doing so, it adopts the perspective of stock market investors and focuses on value-relevance research. The adoption of IAS/IFRS in Europe is an example of accounting standardization among countries with different institutional frameworks...

This book provides the theoretical background and analyses capital market research related to the IAS/IFRS adoption in Europe, which is one of the most important and controversial events in the history of accounting. It adopts both an investor and a firm perspective and therefore investigates the effects of adopting IAS/IFRS on the decision-usefuln...

In this paper, we discuss IFRS 13 Fair Value Measurement with regard to private equity valuation. We raise issues on the fair value definition as an exit price and question the reliability of valuation techniques, which are categorised into Level 2 fair value hierarchy. Our paper questions whether fair value as defined by IFRS 13 is an appropriate...

Using a sample of Italian firms, this paper investigates whether separate financial statements are useful to capital market investors and whether IFRS are more value-relevant than domestic GAAP. This paper finds that separate financial statements are value-relevant regardless of the accounting standard set. However, while results are robust for boo...

The European Regulation 1606/2002 has required European firms listed on the European stock markets to prepare, starting from 2005, their consolidated financial statements according to the international accounting standards IAS/IFRS. The purpose of such a regulation is to ensure a high degree of transparency and comparability of financial statements...

Purpose – This paper aims to discuss fair value accounting and its usefulness to financial statement users. The European Commission has recently endorsed IFRS 13 on fair value measurement and is considering the endorsement of IFRS 9, which extends the use of fair value for financial instruments. Furthermore, fair value accounting has been under dee...

Using a sample of Italian firms, I investigate the value-relevance of separate financial statements as well as the effects of adopting IFRS. I find that separate financial statements provide investors with useful information, regardless of the accounting standard set used for their preparation. I also document significant differences in value-relev...

This paper consists in a field-test of IFRS 13, Fair Value Measurement, on private equities, whose fair value assessment is based on valuation techniques. Its aim is that of offering empirical evidence on the potential economic effects of the application of such a standard in the European Union.Our study consists in a comparison of different valuat...

The effect of disclosure level on the cost of equity is a matter of considerable interest and importance to the financial reporting community. In this research, the effects of the IAS/IFRS adoption in Europe on the cost of equity capital relative to the bank industry have been examined. Previous research has shown that the adoption of the IAS/IFRS...

In this research, the effects of accounting standardization in Europe on the capital market has been investigated by focusing on the bank industry. In particular, since the main purpose of the European Regulation 1606/2002 is that of fostering an efficient and cost-effective functioning of the capital market, this paper directly relates accounting...

Contractual and capabilities perspectives to the firm have often been considered as competing and rival theories in explaining why a firm exists and which its boundaries are.Purpose of this paper is that of trying to identify possible points of contact between these theories and, especially, to explain in-house accumulation of capabilities by using...

In response to increasing concerns by stakeholders, there has been a trend for many public corporations in recent years to provide more information on environmental matters within the annual report. Moreover, the increasing public awareness of environmental issues has put pressure on corporations to measure environmental costs and expenses and to d...

The effect of disclosure level on the cost of equity is a matter of considerable interest and importance to the financial reporting community. In this research, I examined the effects of the IAS/IFRS adoption in Europe on the cost of equity capital relative to the bank industry. Previous research has shown that the adoption of the IAS/IFRS reduces...