Early warning indicators: An empirical investigation in Italian context and first implications for corporate governance

The aim of this paper is to map the exposure risk financial distress and insolvency Italian companies during 2019 by monitoring five early warning indicators defined National Council Chartered Accountants Accounting Experts (CNDCEC) approved Ministry Economic Development, in accordance with provisions “Crisis Insolvency Code” (IC-Code). methodology used conduct these investigations consists comparing average value each indicator for belonging a specific commodity-related sector threshold established sector, order capture signs potential distress. results analysis show that limited liability (LLC) joint-stock (JSC) (listed unlisted) did not particularly worrying insolvency. survey are relevant national regulators, managers, investors, lenders and, more generally, market participants as they shed light on type sectors which economic difficulties likely occur. Moreover, continuous process indicators’ values can provide valuable support CNDCEC verify whether how modify/refine their thresholds, thus improving ability report foreseeable states