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Ownership and control in local public utilities: the Italian case

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  • Andrea Calabrò
  • Mariateresa Torchia
  • Francesco Ranalli

Abstract

The paper discusses the ownership and control structures of local public utilities by showing evidence from the Italian case. In this discussion, the focus is on three main aspects: the ownership structure, the board composition and independence, and citizens’ involvement (service charters). The main results from this study reveal that there are controversial aspects, which need further investigation. The existence of a principal–principal conflict is clearly arising from an in-depth analysis of the ownership structures. In addition, the board of directors, because of the lack of actual independence, does not seem to be a useful arena to manage and solve these conflicts. Other governance mechanisms are thus needed, to increase accountability to citizens. Within this, service charters seem to be a useful tool to protect the “public interest”. However, service charters content analysis suggests that further implementation actions are due. The paper contributes to the debate on conflicts of interests and governance mechanisms in local public utilities suggesting possible developments of agency theory and discussing implications for further research. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Andrea Calabrò & Mariateresa Torchia & Francesco Ranalli, 2013. "Ownership and control in local public utilities: the Italian case," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 835-862, November.
    • Handle: RePEc:kap:jmgtgv:v:17:y:2013:i:4:p:835-862
    DOI: 10.1007/s10997-011-9206-1
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    3. Alessandra Allini & Francesca Manes Rossi & Riccardo Macchioni, 2014. "Do Corporate Governance Characteristics Affect Non-Financial Risk Disclosure in Government-owned Companies? The Italian Experience," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 5-31.
    4. Giuseppe Nicol? & Gianluca Zanellato & Francesca Manes-Rossi & Adriana Tiron-Tudor, 2019. "Beyond Financial Reporting. Integrated Reporting and its determinants: Evidence from the context of European state-owned enterprises," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2019(2), pages 43-72.
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    6. Alberto ROMOLINI & Elena GORI & Silvia FISSI, 2015. "Public Corporate Governance and Performance Information in Local Utilities: The Different Perceptions of Politicians and Managers," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2015(25), pages 55-77, Decembre.
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    10. Cristina Cersosimo, 2023. "The determinants of board size in Italian State-owned enterprises operating in water industry," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(2), pages 169-182, June.
    11. Gabriele D'Alauro, 2014. "La contabilizzazione delle fusioni nelle local public utilities italiane quotate: inquadramento concettuale ed evidenze empiriche," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2014(3), pages 451-472.
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