Beyond Stakeholders Theory:Financial reporting and voluntary disclosure in Italian SME according to a System dynamics point of view

Valerio Antonelli - Università di Salerno, Raffaele D'Alessio - Università di Salerno, Francesca Cuomo -


In most studies, the relationships between voluntary disclosure in financial reporting and two main characteristics of the firms are examined. One characteristic is the size of the company, and the other is the company’s listing status. Thus, large and listed firms are extensively investigated in worldwide literature. Less attention is paid to small and medium sized entities which are more than the 90% of the firms both in developed and undeveloped countries.


Purpose of the paper – The paper aims to analyze main factors, both country-specific and not, influencing financial reporting quality and voluntary disclosure in Italian small and medium size entities.


Design/methodology/approach – The paper offer a strategic point of view on the variables influencing voluntary disclosure and financial reporting quality in Italian context. Such variables and the set of cause-effect relationships connecting them are examined on the basis of mainstream literature approaches referring to corporate governance, information systems, internal auditing, accounting regulation, earnings management, and stakeholder theory, by reviewing empirical and theoretical literature.


Findings. The paper focussed on the variables influencing corporate disclosure and financial reporting. A systematic model is proposed.


Research limitations/implications – The study is based on a theoretical basis. Future research aimed at examining, by surveys and case studies, relationships between the variables of the model needs, in order to explain and predict corporate financial disclosures in Italian small and medium sized entities, are planned.


Practical implications – The comprehensive framework developed in this study for organizing and evaluating voluntary disclosures and financial reporting quality is an initial step in the direction of examining both phenomena from a strategic perspective.


Originality/Value - The paper proposes a model of analysis whose systematic structure is not yet developed in the literature



Corporate governance. Financial reporting. Voluntary disclosure. SME. Italian literature. Strategic perspective.

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Registered by the Cancelleria del Tribunale di Pavia N. 685/2007 R.S.P. – electronic ISSN 2038-5498


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