Enrico Supino, Federico Barnabè, Maria Cleofe Giorgino and Cristiano Busco
The purpose of this paper is to explore the way in which system dynamics (SD) can enhance some key success factors of the balanced scorecard (BSC) model and support…
Abstract
Purpose
The purpose of this paper is to explore the way in which system dynamics (SD) can enhance some key success factors of the balanced scorecard (BSC) model and support decision-makers, specifically in analyzing and evaluating the results of hypothetical scenarios. Moreover, the paper aims to emphasize the role played by statistics not only in validating the SD-based BSC, but also in increasing managers’ confidence in the model reliability.
Design/methodology/approach
The paper presents a case study, developed according to an action research perspective, in which a three-step approach to the BSC implementation was followed. Specifically, the first step requires the development and implementation of a “traditional” BSC, which is refined and transformed into a simulation SD model in the second step. Last, the SD-based BSC is combined with statistics to develop policy making and scenario analysis.
Findings
The integration of BSC and SD modeling enables the development of a comprehensive approach to strategy formulation and implementation and, more importantly, provides a more reliable basis upon which to build and test sound cause-and-effect relationships, within a specific BSC. This paper exemplifies how an SD-based BSC can be used – and perceived reliable – to evaluate different scenarios and mutually exclusive policy effects in a multidimensional approach. In particular, this study illustrates how to forecast and depict trends for financial and non-financial indicators over the simulation period, with reference to three different scenarios.
Originality/value
This paper contributes to the ongoing debate on the BSC by exploring whether a combination of SD and statistics may enhance the BSC system’s advantages and facilitate its implementation process and use for decision-making and scenario analysis.
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Justyna Fijałkowska, Dominika Hadro, Enrico Supino and Karol M. Klimczak
This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and…
Abstract
Purpose
This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and the readability of text that occurred immediately after the adoption of accrual accounting in performance reports of Italian public universities.
Design/methodology/approach
The authors collect the stakeholder section of performance reports published before and after accrual accounting adoption. Then, the authors use manual and computer-assisted textual analysis. Finally, the authors explore the data using principal component analysis and qualitative comparative analysis.
Findings
This study demonstrates that switching from cash to accrual accounting provokes immediate changes in communication patterns. It confirms the significant reduction of readability and increase in visual forms after accruals accounting adoption. The results indicate that smaller universities especially put effort into increasing intelligibility while implementing a more complex accounting system. This study also finds a relation between the change in readability and the change in visual forms that are complementary, with the exception of several very large universities.
Practical implications
The findings underline the possibility of neutralising the adverse effects of accounting reform associated with its complexity and difficulties in understanding by the use of visual forms and attention to the document’s readability.
Originality/value
This paper adds a new dimension to the study of public sector accounting from the external stakeholder perspective. It provides further insight into the link between accrual accounting adoption and readability, together with the use of visual forms by universities.
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Enrico Supino and Maurizio Marano
This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of…
Abstract
Purpose
This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of selling companies. In addition, it aims to detect any potential drivers for higher (or slower) abnormal stock returns.
Design/methodology/approach
The authors analyze all the capital gains of the Italian and Portuguese listed football companies (the only ones for which, based on their annual reports, it was possible to trace the net book value for each player sold and, consequently, if any, the related capital gain) from 2012 to 2020 and use event study analysis to calculate the abnormal returns of the football companies' stocks. Moreover, the authors use a multiple linear regression model to identify the factors affecting investors' reactions and value creation process intensity.
Findings
The results show that, on average, the capital gains from player transfers in football are positive income components and produce statistically significant higher abnormal returns. In addition, the authors identified some relevant drivers related to their intensity which could guide the choices of corporate executives regarding future disposals of the multi-year performance rights of players in the roster.
Research limitations/implications
This study considers only Italian and Portuguese football listed companies. It would be helpful to consider some of the companies from other countries which are also outstanding from the sports perspective, but, in practice, it was not possible due to the impossibility to trace the net book value of the single footballers sold in those clubs' public financial disclosure.
Practical implications
The value relevance of the capital gains from player trading activities should increase their importance, creating cascade effects on several activities generating value for football clubs (youth sector management, player scouting, technical improvement of the players). In addition, financial data show that the capital gains from player transfers are a basic income of European football clubs nowadays. Their executives consider these operations recurrent and continually search for more valuable transfers. Hence, it is reasonable to think that they (will) choose the players to sell considering both sports and financial aspects.
Originality/value
To the best of the authors' knowledge, this is the first study exploring the effects of capital gains from player trading activities on professional football clubs' stock value. The results obtained are even more relevant if one considers the importance these income components have in the profit formula of professional football clubs nowadays, also because of the negative repercussions caused by the recent COVID-19 pandemic.
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In 1926, at the age of only 22, da Empoli wrote two remarkable, original books, both of which have aroused much interest. Later da Empoli improved and developed their analysis…
Abstract
In 1926, at the age of only 22, da Empoli wrote two remarkable, original books, both of which have aroused much interest. Later da Empoli improved and developed their analysis. Other publications followed, such as his lessons in economic science. Others still were in preparation, but his untimely death – at the age of 44 – intervened in 1948. Da Empoli’s contribution to economic science is considered in three sections, starting the first two sections from one of his 1926 books. A third section relates to his later publications and a fourth section contains a global appraisal.
The founders of modern economic thought in Italy are Francesco Ferrara (1810–1900), Luigi Cossa (1831–1896) and Angelo Messedaglia (1820–1901).