Summary of current research and scholarship

       Customer Accounting

Despite the potential of customer metrics it is not clear how CFOs and financial controllers leverage the analytic power of data-driven customer information in management accounting and reporting systems. The objective of this research is twofold: 1) explore how customer analytics are deployed and relate to the core responsibilities of a typical Finance & Accounting function; 2) explore how the disclosure of customer metrics improve decision making inside the company (in the identification of customer to identify, attract and retain) and 2)  outside the company (in predicting future earnings and stock prices).

Bonacchi M and Perego P.  Pulling the Right Levers to Enable Customer Centricity: The Role of Organizational Architecture (May 1, 2015).

Available at SSRN:


       Business combination under common control

 A BCUCC is a merger of two entities owned by the same parent firm. Although most of BCUCCs do not materially change the composition and the market value of parent firm’s assets and liabilities, they can significantly reduce accounting leverage of the parent firm if recorded at fair value. We analyze a choice that parent firms face under IFRS: whether to account a business combination under a common control (BCUCC) at fair value or at the historical cost, to provide evidence that firms would use fair value when they believe it would help them issuing public debt.

Bonacchi M, Marra A, and Shalev R.  Fair Value Accounting and Firm Indebtedness – Evidence from Business Combinations Under Common Control (March 30, 2015).

Available at SSRN:


       Earnings Management in Business Group

We examine the earnings management practices of business groups to shed light on the link between the public parent’s consolidated financial statements and their private subsidiaries’ financial statements.

Bonacchi M, Cipollini F, Zarowin P.  Parents Use of Subsidiaries to ‘Push Down’ Earnings Management: Evidence from Italy (November 12, 2014). Available at SSRN:


       Financial reporting quality in private and public firms

We examines the earnings quality of private versus public firms. While there is a growing interest in US and around the world on the financial reporting quality of private firms, the empirical evidence is mixed and the earning quality of private companies remains an open question.



Summary of research and scholarship during the previous five years

       Customer Equity:

We introduce a measure of customer franchise value for subscription–based companies — a fast growing and vital sector of the economy. We examine the measure’s information content and find that customer value is significantly positively associated with stock price and this association is incremental to both GAAP and a set of non-GAAP variables typically considered in valuation tests. Furthermore, we show that the customer value measure is positively associated with future earnings and analysts’ forecast errors. This study informs researchers and investors, as well as accounting policymakers, about a major value–generating asset currently missing from corporate financial reports.

Bonacchi M, Kolev K, Lev B (2014)


       Corporate social responsibility:

We look at a case study of corporate social responsibility (CSR) development in one of the world’s leading luxury fashion brands: Gucci.

Bonacchi M, Perego P, Ravagli R (2012)