Search results

This study analyses the scope of social and environmental reporting from the perspective of integrating it in financial reporting and comments on a new approach regarding the presentation of social and environmental information in the annual reports from Romanian companies’ perspective.

A literature review introduces and justifies the second part of the research. The latter is organised as an exploratory study based on interviews. It presents the current state of Romanian companies’ availability for reconsidering financial reporting from the perspective of corporate social responsibility.

While social and environmental involvement of Romanian companies is at an early stage, there is a basis for future development of corporate reporting by addressing social and environmental aspects. We noticed that companies have the tendency of responding rather to a mandatory framework than a voluntary one.

The limitations of the research are linked to the study population. The small number of Romanian companies that publicly manifest interest for social responsibility determined the choice of a qualitative instead of a quantitative research.

The exploratory study based on the case of Romania accompanies the present state of non-financial versus financial reporting in order to highlight measurable and non-measurable, but relevant, information to be considered in a future reporting framework.

The study advances new lines in accounting research by confronting the national and international perspectives of social and environmental reporting. Debates and arguments on the research results add value and utility to the research.

Introduction – The Romanian industry was one of the most important traditional branches and in the context of the integration of the country into the European Union, the Romanian industry has made progress in the development of several types of industrial branches, attracting in this sector investors with foreign capital that have determined economic growth by branch having a major impact on the achievement of gross domestic product. The progress and sustainable development of a country is interdependent on both macroeconomic and microeconomic development, and the development of a branch of the economy leads to the creation of a stable environment for attracting new investors and implicitly to the upward evolution of the economy by branch.

Purpose – This article identifies models of bankruptcy risk analysis that have as variables relevant performance indicators for examining the bankruptcy risk of Romanian industrial companies so that it is verified how predictable and significant it is to avoid their potential bankruptcy.

Methodology – By using performance indicators such as liquidity, profitability and insolvency, the analysis aims to be a benchmark for the Romanian industrial companies’ research in terms of bankruptcy risk, but also the accuracy of the models chosen to diagnose a potential bankruptcy.

Findings – There was highlighted a strong relationship between the economic and financial indicators and the Z score functions.

The purpose of this paper is to identify the intellectual capital (IC) performance of the Romanian companies, to empirically examine the association between IC performance and traditional corporate performance and to analyse the relative importance of various components of IC on the company's performance.

Value Added Intellectual Coefficient model (VAICTM) is applied to measure IC performance. Traditional corporate performance is measured through profitability, productivity and market value. In total, 12 null hypotheses are tested using multiple regression analysis where another two control variables (firm size and industry type) are generally included.

Entities creating value from their intellectual, physical and financial resources are penalized by the capital market. Capital employed has an insignificant role in both value creation and in reducing company's production costs. Market value is not necessarily improved by a properly managed structural capital but is influenced by company size. Human capital plays a major role in productivity variation.

Results related to the impact of control factors are mixed and sometimes not significant. Additional research could introduce other control factors, may investigate paper's hypotheses across time, revisit some of the basic assumptions of the VAICM and assess their potential consequences for the validity of empirical testing and results.

This is the first study that replicates VAICTM in the case of Romanian companies. It provides valuable insights about corporate performance in an emerging economy and into the association between IC and traditional corporate performance. It enriches both IC and management literature with new empirical evidence and provides a basis for comparison with other studies.

The main purpose of this chapter is to investigate the association between intellectual capital disclosure (ICD) level and two potential explanatory determinants: industry type and company size.

Twenty-one annual reports of Romanian public companies represented the sample companies. For each company, an ICD index was constructed based on an intellectual capital (IC) framework composed of 33 IC items. The results obtained for ICD Index are then used for statistical testing: descriptive statistics, T test, Pearson correlation, and multiple regression analysis.

Industry type by its own does not seem to influence ICD level and company size by its own does not influence the IC disclosure. However, the combination of the two variables significantly combines together to predict ICD.

A specified list of IC items may not provide the whole picture of ICD practices. Future research could consider interviewing managers about their disclosure rationale. A larger sample could help to further improve the extrapolation of the results. Furthermore, this study challenges researchers to extend the area of analysis by considering the relation between ICD and other possible determinants. Last but not least, a longitudinal study could provide more insights.

The results obtained represent a basis for comparison with those obtained by other studies carried out in other developing countries. Furthermore, they can be used in meta-analysis.

This chapter is one of the first investigating ICD in the case of Romanian companies. Accordingly, our chapter contributes to the ICD literature by providing new empirical evidence on the determinants of ICD in a developing country context.

Changes in food retailing (globalization, concentration) have negative impacts on smaller, “traditional” food retail businesses. Their market share decreasing year by year. The purpose of this study is to examine and compare the financial performances of these businesses under the given circumstances and current economic environment in a Hungarian and a Romanian county.

The study is based on two complete databases, including all companies that behoove retail food activity (considering the NACE cod) in the counties of Hajdu-Bihar (Hungary) and Cluj (Romania). The database analyzed contains the financial statements for five consecutive years for 212 and 690 businesses. Databases were examined by the most typical financial indicators using the multivariate and univariate analysis of variance and the k-medoid cluster analysis methods.

The results of the analysis have shown that there are differences in the number of retail food companies in the case of two counties, both in number and in financial performance. Companies in Hajdú-Bihar county perform better in terms of financial ratios than those in Cluj county. The groups created by k-medoids cluster analysis are relatively well distinguished in the case of Hajdú-Bihar county, while the picture is much more mixed in the case of Kolozs county. However, it is also important to note that the companies analyzed should generally perform better to survive.

Among the limitations of the study, it is important to note that the findings are relevant only to the two counties examined. Another limiting factor is that quite several companies had to be excluded from the analysis due to missing data or outliers.

The study presents for the corporate decision-makers the current performance of the companies of the sector examined in the two counties. The results of the study highlight the business areas of concern in management. The findings show that they need to change this performance to strengthen their market position. We believe that it is not enough to complain about the expansion of the supermarket chains, but they should take appropriate actions to improve their situation. Based on the results of the study, it can be concluded that there is a need to improve the financial efficiency of retail food companies in both counties to survive in the long run. This improvement is essential because retailers can play an important role in smaller settlements and narrower residential environments.

Comparative analysis of retail food companies in similar counties in these two neighboring countries has not been conducted using complex financial analysis. The study revealed the common and/or individual characteristics of these companies.

This study aims to outline the influence of various combinations of antecedent conditions for startups being accepted into business incubators in Italy and Romania. The degree to which these conditions affect acceptance is referred to here as the Business Ideas Acceptance Degree (BIAD). The antecedent conditions considered are business idea potential, business plan quality, entrepreneurial team features, business project progress stage, available financial resources, debts of potential incubated companies, commitment to apply for national/EU funds, business area related to incubator mission, proposed technological content level, technological transfer from university/research centres and spin-off of a partner-entity of the incubator.

The methodological toolkit used was mixed: correlation-based analysis (CBA), machine learning (ML) techniques and fsQCA. Principal component analysis enabled the selection of the most representative antecedent conditions from both business incubator samples in Italy and Romania, further used in fsQCA analyses. XGBoost algorithm has been also used. K-Means clustering, an unsupervised learning algorithm that groups unlabeled dataset into different clusters, led to the configuration of two clusters associated to each of the countries involved in this study (Romania and Italy).

The findings reveal the differences between the different antecedent conditions that can contribute to startups being accepted into business incubators in Italy and Romania. The validation of the fsQCA equifinality principle in both samples shows that the selected antecedent conditions, mixed in combinations of “causal recipes”, lead to a high BIAD by business incubators from both countries.

This study reveals the differences between different antecedent conditions, capable to contribute to the start-up acceptance within business incubators from Italy and Romania. Furthermore, the validation of fsQCA equifinality principle in both samples highlight that the selected antecedent conditions, mixed in combinations of causal recipes, lead to a high degree of business ideas' acceptance in business incubators.

Within a Europe highly concerned about becoming a zero net greenhouse gas emission continent, and where the circular economy is strongly promoted as a proper lever in this sense, the present paper aims to raise awareness regarding best practices towards a “green” food retail sector in Romania. In a more specific regard, the “green” practices implemented by the main food retailers acting on the Romanian market are analysed, focusing on what these practices are, how they are measured and how transparent they are.

The paper is based on desk research consisting in the identification and content analysis of the “green”-related information outlined on the food retailers' websites and in their published sustainability reports.

Food retailers are concerned about becoming carbon neutral, implementing the “green” measures outlined in the paper through the lenses of waste management, minimising/eradicating plastic, reducing/eliminating food waste, energy efficiency/saving, water consumption efficiency, protecting biodiversity, transportation efficiency and compliance with standards/obtained certifications/adherence to pacts. In addition to actions, food retailers are concerned about their proper, continuous monitorization, tackling key indicators in four directions: overall impact on the environment, impact on resources, waste impact and transportation impact.

The paper provides a novel, exhaustive best practices guide to encourage the transition to a “greener” activity in the Romanian food retail sector, highlighting both action measures and key assessment indicators.

The present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.

The research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.

The results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.

Due to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.

Companies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.

Studies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

Mobilizing a theoretical framework combining institutional logics and “imprinting” lenses, this paper provides an in-depth contextualized analysis of how historical imprints affect social and environmental reporting (SER) practices in Romania, a post-communist country in Eastern Europe.

The authors conduct a qualitative field study with a diverse dataset including regulations, publicly available reports and interviews with multiple actors involved in the SER field in Romania. The authors follow a reflexive approach in constructing the narratives by mobilizing their personal experience and understanding of the field to analyze the rich empirical material.

The authors identify a blend of logics that combine local and Western conceptualizations of business responsibilities and explain how the transition from a communist ideology to the free market economy affected SER practices in Romania. The authors also highlight four major imprints and document their longitudinal development, evidencing three main patterns: persistence, transformation and decay. The authors find that the deep connections that form between logics and imprints explain the cohabitation of logics rather than their straight replacement.

The paper contributes by evidencing the role of imprints' dynamics in the institutionalization of SER logics. The authors claim that the persistence (decay) of imprints from a former regime such as communism hinders (facilitates) the institutionalization of Western SER logics. Transformation instead has more uncertain effects. The pattern that an imprint takes hinges upon its usefulness for business interests.

This paper investigates the process of translating a costing tool into operational use in the context of a transitional (post-communist) economy, where local institutions challenge the rationality of western methods.

By mobilizing Actor–Network Theory, in particular Callon's four moments of translation, and by drawing data from an interventionist research, the paper focuses on the process of change instilled by the implementation of a costing tool in 20 Romanian construction companies.

The costing system is initially problematized as a tool for rational decision making. However, the visibility over the accounting figures generated by the costing tool instilled new roles for the cost system to manage internal and external interdependencies. First, two costing datasets were created, one for decision making and one for tax purposes, to manage the relationship with the state taxation authorities. Second, since the costing tool generated visibility over the field practices as well, engineers convinced management to drop the decision-making set of costs. The costing tool ultimately only became used for tax optimization, an originally unintended use, reflecting its translation process.

By taking an interventionist approach, the paper contributes to theorizing accounting in transitional economies by bringing their economic idiosyncrasies into the analysis.

The results inform managers about the intended and unintended consequences of management accounting tools and about actors' role in shaping their use.

Our research responds to recent calls to study how organizations configure their control systems in a rapidly changing environment and what is the role of management accounting in these arrangements.