“Certain elements of Legislative Decree no. 14 of 12 January 2019 impact on different aspects of corporate governance and control system, providing the chance to improve the organization and its ability to create value through, among others, the appointment of a control body. In particular, this study takes the cue from the corporate governance model updates ex article 2477 c.c.. The article 2477 c.c. states that companies that i) are required to present the consolidated financial statements, or ii) control a company obliged to carry out the statutory audit, or iii) report some values over the defined thresholds for two consecutive years, must introduce a control body, choosing between the appointment of a board of statutory auditors / statutory auditor (collegio sindacale or sindaco unico) and an external auditor (company or individual). In this context, this paper intends to analyze the distinctions between the appointment of a statutory auditor and an external auditor that are control bodies with unlike aimsand hence differently able to indirectly impact on the value creation. After the above-mentioned comparison, the research proposes a quantitative study based on a sample of 1,108 Italian companies (s.r.l.) in order to empirical highlight the more significant and constructive role of the statutory auditors in improving firm performance. Various tests, like random effects and ordinary regressions, have been performed using data over a period of three years (2018-2020). Outcomes of the empirical analysis confirm a positive influence of the appointment of statutory auditors on firm results in terms of EBITDA/Revenues. In conclusion, regarding the appointment of a control body, this paper suggests to carefully assess the choice of the type (statutory auditor or external auditor), considering the differences of the roles and the impacts on corporate governance mechanism. In other words, it is useful to point out that the occasion provided by the law to review corporates’ governance and control system structure should be carried on strategically.”
KEYWORDS: corporate governance, board of statutory auditors, external auditor
