International Accounting Research: The Italian Context

Oftentimes, research ideas in the international accounting field arise from the comparison of different contexts and from the curiosity to understand how different constructs work in various settings. Despite knowledge and understanding of the institutional, cultural, and legal settings of countries are prerequisites for this kind of research, studies often focus on very narrow issues and do not allow a grasp of the big picture of the institutional feature of a country, and how this can influence managers' decisions related to accounting choices and disclosures. This paper aims at filling this gap and at fostering an understanding of the Italian institutional setting (e.g., culture, societal values, corporate governance, GAAPs, auditing, and tax regulations), thereby facilitating the work of international accounting researchers who wish to include Italian firms in their samples. Oftentimes, research ideas in the international accounting field arise from the comparison of different contexts and from the curiosity to understand how different constructs work in various settings. Despite knowledge and understanding of the institutional, cultural, and legal settings of countries are prerequisites for this kind of research, studies often focus on very narrow issues and do not allow a grasp of the big picture of the institutional feature of a country, and how this can influence managers' decisions related to accounting choices and disclosures. This paper aims at filling this gap and at fostering an understanding of the Italian institutional setting (e.g., culture, societal values, corporate governance, GAAPs, auditing, and tax regulations), thereby facilitating the work of international accounting researchers who wish to include Italian firms in their samples.