No. 1517 - Costly firm supervision: the impact of statutory auditors on Italian firms
This paper analyzes the impact of establishing a board of statutory auditors (OdC) in limited liability companies, exploiting regulatory changes in the thresholds of revenues, assets and number of employees above which its appointment is mandatory. The analysis quantifies the effect of appointing the OdC on firms' share capital soundness, the cost of bank financing, and the ways in which they address crises. The costs of the OdC are then compared with its benefits.
In the years following the initial appointment of the OdC, firms tend to increase reserves and paid-in share capital, to be quicker in restructuring debt and to have a lower probability of entering into judicial liquidation, while there are no effects on access to bank credit. This notwithstanding, the aggregate costs of the OdC exceed its measurable benefits for smaller firms.
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06 February 2026
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