Accounting, Audit and Analysis

The vital decisions of the enterprise are connected to knowing the costs, their structure and characteristics. From this perspective, one can say that, by classifying costs, we can rapidly choose those costs that correspond to the specific needs of information.

Abstract. The health systems consume a lot of resources. In the last thirty years, there was registered a continuous increase of the necessary resources' level. This increase was mainly due to: the ageing of the population, discovery of more efficient medicines and of more advanced and costly technologies, the increase of the number of persons who benefits by medical assistance.

Abstract: Companies that are listed on a stock exchange should know that reporting only financial measures is not enough for ensuring sustainable development. To be truly competitive, they should also include information about environmental policies and about the benefits that the company offers to its employees. The present research aims to provide information on how Romanian listed companies report environmental and social indicators and whether or not this has an impact on financial performance. We used a four time period panel fixed effect model for Romanian companies that are listed in the first category of the Bucharest Stock of Exchange. The results point out that increasing water, air and soil protection has a negative impact on current return on equity, while no effects were detected on return on assets and stock market returns. Other environmental variables such as gas, energy or sound were found not to be statistically significant. Training and benefits after retirement have a mixed effect on financial measures. The research correlates Romanian accounting regulation changes with companies’ characteristics and the influence of financial audit on financial performance, and concludes that increasing environmental and social protection could have an impact on financial performance in the long run, as positive correlation was detected between social or environmental performance and stock market returns one year after the changes occurred.
(This article belongs to the Special Issue Sustainable Development and Entrepreneurship in Contemporary Economies)

This article’s goal is to present the correlation between the firms’ turnover and the lump-sum tax on the small and medium enterprises’ activity, introduced in Romania in May 2009 at the IMF's recommendation to increase budget revenue and cleanse the business sector of inactive firms. We have studied the data supplied by the Emergency Ordinance no. 34 from April 11th 2009, published in the Official Gazette no. 249 from April 14th 2009 and the literature in the field, in order to see what type of connection there is between the two variables, the turnover and the lump-sum tax, and measure the intensity of the relationship.

This article’s goal is to present the main consequences of the lump-sum tax on the small and medium enterprises’ activity, introduced in Romania in May 2009 at the IMF's recommendation to increase budget revenue and cleanse the business sector of inactive firms. The reviewing of data sources started in February 2012 and finished in March 2012 and determined setting inventory of the main sources capable to offer relevant data in order to review the SMEs’ sector from Romania. We have studied the data supplied by the Trade Register regarding the evolution of the number of dissolutions and suspensions of SMEs’ activity, the number of acts of procedure issued by insolvency practitioners and the evolution of the number of natural authorized individuals. The indices of the SMEs’ evolution, calculated by the National Council of SMEs in Romania helped us to find out the perception of the business environment.

This article aims to analyze the impact of the financial crisis on the corporate insolvency's evolution and the changes in the Romanian insolvency regime. The Romanian government was determined, as other European Union member states’ governments did, to improve its insolvency law in order to save the viable businesses and to stimulate the creation of new ones. We want to highlight Romania's position within the European Union in terms of time, cost of insolvency, recovery rate and dynamics of business insolvencies’ number and to propose specific measures to improve its situation.

In this paper are examined the extent and composition of fiscal incentive policies which have been adopted by some EU countries to cushion the effects of the lingering crisis that upended the whole economy since 2008. The research methodology is the comparative analysis between the Romanian, English, Italian and Greek SMEs’ tax policies in the period 2010 – 2012. The fiscal incentives are conditioned by a series of factors and they comprise: reductions in the statutory corporate income tax rate; accelerated depreciation allowances for capital expenditures; targeted investment tax credits etc. These stopgap fiscal policies are the limelight for reinvigorating or averting the consumption and investments’ retrenchment.

Lending Club is an online financial community that brings together creditworthy borrowers and savvy investors so that both can benefit financially [1]. It allows its members to directly invest in and borrow from each other and so avoid the cost and complexity of the banking system.
On the Lending Club site there are several files that contain complete loan data, including the current loan status and latest payment information. [2] The data used in this analysis represents a sample of 2,500 peer-to-peer loans issued by the Lending Club explained through 14 variables such as: monthly income, amount requested, FICO range (a range indicating the applicants FICO score) [3], inquiries in the last six months etc. The goal of this analysis is to establish if there is any correlation between the outcome variable – the interest rate of the loans – and the other variables especially considering the FICO score, which is a measure of the creditworthiness of the applicant.
In this project we performed an analysis to determine if there was a significant association between the interest rate and the FICO score. Using exploratory analysis and standard multiple regression techniques we show that there is a significant negative relationship between the interest rate and the FICO score, even after adjusting for important confounders such as the length of the loan, the amount funded by the investors and the amount requested by the borrowers.
Our analysis suggests that there is a significant, negative association between Interest Rate and FICO score. Our analysis estimates the relationship using a linear model relating one percent of interest rate to one unit of FICO score. There appears to be a strong inverse relationship between the two variables.
Our results suggest that there are other variables such as loan length, amount requested by the borrower and amount funded by the investors which are associated with both interest rate and FICO score. Including these variables in the regression model relating interest rate to FICO score improves the model fit, but does not remove the significant positive relationship between the variables.

This article’s goal is to highlight the main microeconomic and macroeconomic effects of the 2010 VAT hike in Romania and the Romanian firms’ response to it. At 1st July 2010, the Romanian Government raised the Value Added Tax from 19% to 24%, causing chain increases that delayed with nine months the Romania’s exit from recession. It intended to increase its receivables in a period in which the state budget had problems in collecting taxes. I have concluded that the main microeconomic effect was the plunge of the firms’ sales and the macroeconomic one was the decrease of the Gross Domestic Product (GDP). Regarding the Romanian firms’ reaction to the VAT increase, most of them have ignored the VAT hike and they did not have an important response to such a modification.

This article’s goal is to highlight the main reasons and effects of the adoption of the reverse change for the supply of cereals and industrial plants in Romania in May 2011 on the companies’ activity in our country. In an attempt to diminish the VAT evasion related to sale of crops and grains, the Romanian Government introduced simplification measures for the sale of crops and grains that should also provide a cash flow benefit especially for the Romanian firms involved in cereal trading, thanks to the earlier collection of the inputs’ VAT from the state

Does the social class a person belongs in determine the level of confidence in banks and financial institutions? I am a Financial Researcher so this question relates to my field of interest. I consider this a pertinent question because the financial institutions could develop a marketing strategy in order to improve the level of confidence in banks of certain persons belonging to a certain social class based on the results of this study.

In this article, we studied the relationship between macroeconomic factors and the observed corporate births for the Romanian economy through the Autoregressive Distributed Lags Model (ADL). We performed a time series analysis that uses monthly
data for the period January 2008 – December 2013 in order to establish the impact
of the fi scal and monetary policy adopted by the Romanian government in times of
economic crisis on the fi rms’ demography. The corporate birth rate is an endogenous
variable in a linear function model with fi ve exogenous macroeconomic variables such as the CPI, the loans ratio to GDP, the FDI, the long term interest rate, tax rate to GDP and the lags of the dependent variable. The main finding is that the variance of the corporate birth rate variable is negatively correlated with the variances of CPI in the current month and the interest rate two months lagged. We also determined that the variance of the dependent variable was positively correlated with the variances of the loans rate two months lagged, tax rate four months ago and FDI two months lagged and FDI in the current period.

This article’s goal is to analyze the relationship between
macroeconomic determinants and the new business entries for 24 EU
member states through a Panel Data Analysis during 2004-2012 in
order to establish the impact of the tax and monetary policy adopted
by the EU member states governments on the business births. The
new business density is the dependent variable in a model with five
independent macroeconomic variables such as the tax revenue,
inflation, the GDP per capita growth, long-term unemployment and the intern credit to private sector by banks.

This paper investigates the relationship between the macroeconomic determinants and the observed SMEs' failures for the Romanian economy through the Autoregressive Distributed Lags Model (ADL). We performed a time series analysis that uses monthly data for the period January 2008 – December 2013 in order to establish the impact of the fiscal and monetary policy adopted by the Romanian government in times of financial crisis on the SME sector. The corporate failure rate is an endogenous variable in a linear function model with two exogenous macroeconomic variables such as the consumer price index and the loans ratio to GDP and the lags of the dependent variable. The main finding is that the variance of the SMEs' insolvency rate variable is positively correlated with the variance of CPI two months ago and with the variances of the loans rate one month ago, two months ago and four months ago and negatively correlated with the variance of the loans rate three months ago.