Financial accounting research increasingly includes business model (BM) constructs, but the ability of financial reporting to capture BM characteristics has not been verified. This study empirically explores the links between BMs and accounting choices by clustering a sample of 103 European listed companies according to an innovative, nonlinear algorithm (self-organizing map) that uses pertinent industrial, strategic, governance, and financial variables to uncover different dimensions of a BM. The authors investigate accounting choices (accounting measurement, accounting treatment, and disclosure level) by companies that belong to the different identified BMs. The analysis of the relations between different company BMs and their accounting choices indicates no significant connections, which offers empirical confirmation of the criticisms regarding the inability of financial reporting to represent (or even consider) a company’s BM. The results suggest further attempt to capture BM in financial reporting, which requires regulators to establish accounting standards that acknowledge the value creation process of an entity and incentivize managers to represent those processes.

Lionzo, A., Lassini, U., Rossignoli, F., Linking financial statements to business models: empirical evidence of annual report’s ability to predict sustainable performance, Paper, in Atti del Convegno AIDEA "Il ruolo dell’azienda nell’economia", Lecce, 19-21 settembre 2013, (Lecce, 19-21 September 2013), Cacucci, Bari 2013: 1-34 [http://hdl.handle.net/10807/66871]

Linking financial statements to business models: empirical evidence of annual report’s ability to predict sustainable performance

Lionzo, Andrea;Lassini, Ugo;
2013

Abstract

Financial accounting research increasingly includes business model (BM) constructs, but the ability of financial reporting to capture BM characteristics has not been verified. This study empirically explores the links between BMs and accounting choices by clustering a sample of 103 European listed companies according to an innovative, nonlinear algorithm (self-organizing map) that uses pertinent industrial, strategic, governance, and financial variables to uncover different dimensions of a BM. The authors investigate accounting choices (accounting measurement, accounting treatment, and disclosure level) by companies that belong to the different identified BMs. The analysis of the relations between different company BMs and their accounting choices indicates no significant connections, which offers empirical confirmation of the criticisms regarding the inability of financial reporting to represent (or even consider) a company’s BM. The results suggest further attempt to capture BM in financial reporting, which requires regulators to establish accounting standards that acknowledge the value creation process of an entity and incentivize managers to represent those processes.
Inglese
Atti del Convegno AIDEA "Il ruolo dell’azienda nell’economia", Lecce, 19-21 settembre 2013
Atti del Convegno AIDEA "Il ruolo dell’azienda nell’economia", Lecce, 19-21 settembre 2013
Lecce
Paper
19-set-2013
21-set-2013
9788866112945
Lionzo, A., Lassini, U., Rossignoli, F., Linking financial statements to business models: empirical evidence of annual report’s ability to predict sustainable performance, Paper, in Atti del Convegno AIDEA "Il ruolo dell’azienda nell’economia", Lecce, 19-21 settembre 2013, (Lecce, 19-21 September 2013), Cacucci, Bari 2013: 1-34 [http://hdl.handle.net/10807/66871]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/66871
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