Transition to the new lease accounting model (IFRS 16) and companies' performance. Evidence from Italian listed companies

The paper presents an empirical analysis on the implementation of the new lease accounting model provided by IFRS 16. It takes into consideration the theoretical framework related to off-blanche sheet leases and the application of the methodological approaches that provided controversial results about the potential effects on companies’ financial statement and performance deriving from the leases capitalization. More specifically, by analyzing the transition period from theIAS 17 to IFRS 16, this paper aims to measure the effective impacts resulting from the implementation of the new lease accounting model requirements on companies’ financial structure, economic and financial performance and on market reactions. The findings presented in the empirical section enrich the academic debate on lease accounting and harmonization and, they are of a great interest also for practitioners, regulators and policy makers.