Francesco Paolo Ricapito’s research while affiliated with University of Milan and other places

The accounting standard IFRS 9 Financial Instruments of the International Financial Reporting Standards (IFRS) has introduced a new model to estimate credit loss, requiring entities to assess the credit risk associated with financial assets and recognize impairment losses based on expected credit losses (ECL), rather than the incurred credit losses (ICL) of the former IAS 39 by the International Accounting Standards Board (IASB). The adoption of IFRS 9 has led to various application issues and challenges, particularly in assessing economic conditions and specific borrower circumstances that may impact creditworthiness, resulting in a significant impact on business performance. Specifically, banks are now required to estimate the future cash flows of their borrowers and adjust their provisions, considering forward-looking information. This includes not only an analysis of company characteristics but also macroeconomic factors to assess credit losses. Given the aforementioned considerations, our study aims to investigate the adoption of IFRS 9 in the banking sector industry, focusing on the effects of the credit risk assessment model and its impact on banks’ performance. The analysis is based on a sample of European listed banks spanning the 2014–2021 period. We compare the period during which the banks adopted IFRS 9 and the ECL model with the period in which the banks used IAS 39 and the ICL model to understand the effects on the provisioning costs, non-performing loans (NPLs) and capital adequacy. In this perspective, the adoption of IFRS 9 forced European banks to make more accurate assessments of their credits and associated risks, leading to significant changes in their risk management and internal control practices, in order to reduce the impact on the performance and capital of banks.

To evaluate the differences in efficacy and safety between the 100 and 150 W percutaneous microwave ablation (MWA) systems in the treatment of hepatocellular carcinoma (HCC). We retrospectively reviewed all patients who underwent percutaneous MWA (Emprint™ HP Ablation System, Medtronic) between January 2021 and May 2023. We divided the cohort into two groups: Group 1, treated with MWA at 100 W power system, and Group 2, treated with 150 W one. Effectiveness was defined as the absence of residual disease at 1-month CT follow-up; safety was defined as the absence of grade II-VI complications. A total of 135 HCC nodules were treated with MWA in 87 patients with a median age of 66 ± 10 years: 76 procedures in 42 patients were carried out in group 1, while 59 procedures in 45 patients in group 2. Cases treated with 150 W had a shorter ablation time (p: 0.002; mean 227.37 ± 92.5 vs 180.51 ± 75.6 s (100 vs 150 W)) and a larger ablation volume (p 0.008; mean 13,920.0 ± 10,723.2 vs 21,241.4 ± 18,374.7 mm3 (100 vs 150 W)), and a major effectiveness at 1-month CT follow-up (p: 0.013). A higher rate of complications (grade II and III) was observed in Group 2 (p < 0.001). In conclusion, these preliminary results showed a good correlation between intended-to-treat area and ablation volume and intended-to-treat area and ablation time for both Groups. A minor ablation time, and major ablation volume, but also a higher incidence of complications was observed in 150 W Group.

While earnings manipulation has a broad literature in the private sector, there is a lack of research on this topic in the public sector. This paper aims to explore the level of earnings management in Spanish provincial councils. The use of accrual accounting may be viewed negatively by stakeholders such as the central government, opposition parties, and citizens. The public choice theory highlights the conflicting interests of politicians seeking re-election and citizens aiming to maximize their welfare, leading to potential manipulation of earnings. Discretionary accruals are used as a proxy for earnings management in this study. Additionally, the impact of financial sustainability measures on earnings management is examined. The analysis covers the period from 2017 to 2020 and reveals how certain financial sustainability ratios and pre-election years can influence the extent of earnings manipulation. This paper contributes to the existing literature on earnings management in local governments by examining the connection between financial sustainability indicators and this behavior. Specifically, it focuses on the relationship between budget vulnerability and sustainability, and their influence on the magnitude of discretionary accruals.

The purpose of this paper is to investigate the relationship between environmental, social and governance (ESG) performance, both in its totality and its three pillars (environmental, social and governance), and earnings management. The sample includes companies listed on the Italian Stock Exchange market (FTSE Italia All-Share index) during business years 2014–2019. After excluding those firms belonging to the financial sector, along with those with missing values, the final sample consists of 103 firms for a total of 618 firm-year observations. Data have been collected from two databases, that are Refinitiv Eikon (for ESG and governance variables) and AIDA Bureau van Dijk (for economic and financial variables). Panel data regression analysis has been implemented to analyse the impact of ESG performance on accrual-based (AEM) and real based (REM) earnings management. It is found that ESG performance has a negative effect on AEM but not on REM, and the governance pillar has the strongest impact compared to those of environmental and social ones. In addition, this research suggests a bidirectional link between ESG performance and earnings management. This analysis contributes to prior research since it is the first study that has used accrual and real-based earnings management proxies with this topic in relation with ESG performance and its three components in the Italian traditional corporate governance system. Corporate practice, regulators and researchers should recognize that ESG performance and earnings management should be discussed together.

The objective of this paper is to analyse the impact of COVID-19 on the earnings manipulation of firms and whether corporate governance has a mitigating effect. The methodological approach consists of two steps: in the first stage, a pooled ordinary least squares (OLS) regression model has been implemented to compute the earnings management proxies, whereas in the second stage panel data regression analysis has been adopted to test the effects of corporate governance variables on the earnings management proxies themselves. Using data from STOXX Europe 600 as a proxy for the European capital market, it is found that the level of companies’ earnings manipulation increased during the pandemic. In particular, companies have engaged in more accounting and real earnings management (REM) practices. The findings show that a larger board helps to mitigate the positive relationship between COVID-19 and earnings manipulation, whereas no mitigating effect for board independence, board diversity and chief executive officer (CEO) duality has been found. In addition, an industry analysis has been developed both for robustness purposes and in order to check which sectors have been most and least affected by the pandemic. In particular, the findings show how the most affected industries reported a higher level of earnings management, resulting in a worse reporting quality. This paper provides additional evidence on the impact of COVID-19 on earnings management using a strong multi-country level governance setting. The results of this study provide useful suggestions for business practice, investors and policymakers.

Objective: The aim of this study is to evaluate the feasibility, safety, and short-term effectiveness of a high-power (150 W) microwave ablation (MWA) device for tumor ablation in the lung, liver, and kidney. Methods: Between December 2021 and June 2022, patients underwent high-power MWA for liver, lung, and kidney tumors. A retrospective observational study was conducted in accordance with the Declaration of Helsinki. The MWA system utilized a 150-W, 2.45-GHz microwave generator (Emprint™ HP Ablation System, Medtronic). The study assessed technical success, safety, and effectiveness, considering pre- and post-treatment diameter and volume, lesion location, biopsy and/or cone beam computed tomography (CBCT) usage, MWA ablation time, MWA power, and dose-area product (DAP). Results: From December 2021 to June 2022, 16 patients were enrolled for high-power MWA. Treated lesions included hepatocellular carcinoma (10), liver metastasis from colon cancer (1), liver metastasis from pancreatic cancer (1), squamous cell lung carcinoma (2), renal cell carcinoma (1), and renal oncocytoma (1). Technical success rate was 100%. One grade 1 complication (6.25%) was reported according to CIRSE classification. Overall effectiveness was 92.8%. Pre- and post-treatment mean diameters for liver lesions were 19.9 mm and 37.5 mm, respectively; for kidney lesions, 34 mm and 35 mm; for lung lesions, 29.5 mm and 31.5 mm. Pre- and post-treatment mean volumes for liver lesions were 3.4 ml and 24 ml, respectively; for kidney lesions, 8.2 ml and 20.5 ml; for lung lesions, 10.2 ml and 32.7 ml. The mean ablation time was 48 minutes for liver, 42.5 minutes for lung, and 42.5 minutes for renal ablation. The mean DAP for all procedures was 40.83 Gcm2. Conclusion: This preliminary study demonstrates the feasibility, safety, and effectiveness of the new 150 W MWA device. Additionally, it shows reduced ablation times for large lesions.