No. 1498 - The value of words: evidence from non-financial disclosure regulation

Temi di discussione (Working papers)
by Antonio Accetturo, Audinga Baltrunaite, Gianmarco Cariola, Annalisa Frigo and Marco Gallo
October 2025
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The notes to the accounts complement the standard balance sheet formats and provide an overall qualitative assessment of past and prospective business performance. To reduce administrative burdens, a simplified reporting regime for micro-enterprises (the micro-firm balance sheet) was introduced in 2016, removing the obligation to prepare notes to the accounts.

The adoption of the micro-firm balance sheet did not lead to a significant reduction in costs for firms. However, simplified reporting negatively affected their ability to access external financing and slowed the acquisition of equity stakes by new shareholders, likely due to the reduced availability of information.

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  1. 13 October 2025
    No. 1498 - The value of words: evidence from non-financial disclosure regulation
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