Abstract The controlling function should provide decision relevant information to the top management. However, in some companies the controlling function does only deliver little or no decision support to the management and in consequence loses influence. This paper aims to solve this unfavorable situation. The paper will outline how the controlling function is unconsciously influenced by internal and external factors. Special focus is put on the influence of the company size on the controlling function which is analyzed based on a recent survey. To find an optimal project set up various suggestions made in the literature are analyzed and developed further. The suggested project set up is a scalable project plan which involves top management as recipient of controlling services at an early stage. As restructuring initiatives have to overcome the resiliency against changes the suggested project plan will focus to achieve quick wins on the one hand side and to prepare the organization for more strategic changes on the long run. The introduced project plan will provide companies a blueprint how to maximize project success while minimizing complexity and possible resistance towards the adaption process. This paper is expected to have a high relevance for companies who want to improve the value contribution of their controlling department.
{"title":"Improving the controlling function with a structured optimization project","authors":"Valerian Laval","doi":"10.1515/tjeb-2015-0015","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0015","url":null,"abstract":"Abstract The controlling function should provide decision relevant information to the top management. However, in some companies the controlling function does only deliver little or no decision support to the management and in consequence loses influence. This paper aims to solve this unfavorable situation. The paper will outline how the controlling function is unconsciously influenced by internal and external factors. Special focus is put on the influence of the company size on the controlling function which is analyzed based on a recent survey. To find an optimal project set up various suggestions made in the literature are analyzed and developed further. The suggested project set up is a scalable project plan which involves top management as recipient of controlling services at an early stage. As restructuring initiatives have to overcome the resiliency against changes the suggested project plan will focus to achieve quick wins on the one hand side and to prepare the organization for more strategic changes on the long run. The introduced project plan will provide companies a blueprint how to maximize project success while minimizing complexity and possible resistance towards the adaption process. This paper is expected to have a high relevance for companies who want to improve the value contribution of their controlling department.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"19 1","pages":"203 - 219"},"PeriodicalIF":0.0,"publicationDate":"2015-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67365202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract From the beginning of the debates regarding the conservatism principle, the concept experienced a significant development. As it is one of the most controversial and violated accounting principle, we started to seek how can we help one of the auditor’s challenge in the audit mission: to identify and evaluate the risks from the financial statement level. The most affected accounting principle in Romania is the conservatism principle. After a long time of debates, it was stated that the conservatism principle, considered to be complementary to the “fair view” concept, which means that financial reports shall be required to submit information so impartial and in such a manner as to enable the reader to understand them clearly. Considered as a risk that should be identified, this study demonstrates a relationship between the violation of the conservatism principle and the analysis of the financial indicators, such as: Long-Term-Debt-to-Equity Ratio; Debt-to-Equity Ratio; Global Solvency Ratio; Operating Margin Ratio; Current Finance Ratio; Period of Activity Indicator and Auditor Indicator. Based on a quantitative method, this analyze was realized through three econometric model performed on annual financial statements of the companies from Bucharest Stock Exchange. After validating the sample and analyzing the factorial variables, we selected the best model: the probit model. In conclusion, as can be seen in the paper, the econometric function is efficient, reliable and can be applied to assess the risk likelihood for violating the conservatism principle by a Romanian company.
{"title":"Testing the violation of conservatism accounting principle. Case study on Romanian listed entities","authors":"O. Bunget, E. Bureană","doi":"10.1515/tjeb-2015-0014","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0014","url":null,"abstract":"Abstract From the beginning of the debates regarding the conservatism principle, the concept experienced a significant development. As it is one of the most controversial and violated accounting principle, we started to seek how can we help one of the auditor’s challenge in the audit mission: to identify and evaluate the risks from the financial statement level. The most affected accounting principle in Romania is the conservatism principle. After a long time of debates, it was stated that the conservatism principle, considered to be complementary to the “fair view” concept, which means that financial reports shall be required to submit information so impartial and in such a manner as to enable the reader to understand them clearly. Considered as a risk that should be identified, this study demonstrates a relationship between the violation of the conservatism principle and the analysis of the financial indicators, such as: Long-Term-Debt-to-Equity Ratio; Debt-to-Equity Ratio; Global Solvency Ratio; Operating Margin Ratio; Current Finance Ratio; Period of Activity Indicator and Auditor Indicator. Based on a quantitative method, this analyze was realized through three econometric model performed on annual financial statements of the companies from Bucharest Stock Exchange. After validating the sample and analyzing the factorial variables, we selected the best model: the probit model. In conclusion, as can be seen in the paper, the econometric function is efficient, reliable and can be applied to assess the risk likelihood for violating the conservatism principle by a Romanian company.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"183 - 202"},"PeriodicalIF":0.0,"publicationDate":"2015-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67365111","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In the present paper we study some models for the price dynamics of a single commodity market. The quantities of supplied and demanded are regarded as a function of time. Nonlinearities in both supply and demand functions are considered. The inventory and the level of inventory are taken into consideration. Due to the fact that the consumer behavior affects commodity demand, and the behavior is influenced not only by the instantaneous price, but also by the weighted past prices, the distributed time delay is introduced. The following kernels are taken into consideration: demand price weak kernel and demand price Dirac kernel. Only one positive equilibrium point is found and its stability analysis is presented. When the demand price kernel is weak, under some conditions of the parameters, the equilibrium point is locally asymptotically stable. When the demand price kernel is Dirac, the existence of the local oscillations is investigated. A change in local stability of the equilibrium point, from stable to unstable, implies a Hopf bifurcation. A family of periodic orbits bifurcates from the positive equilibrium point when the time delay passes through a critical value. The last part contains some numerical simulations to illustrate the effectiveness of our results and conclusions.
{"title":"Dynamical Models For Prices With Distributed Delays","authors":"G. Mircea, M. Neamţu, L. Cismaș","doi":"10.1515/tjeb-2015-0010","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0010","url":null,"abstract":"Abstract In the present paper we study some models for the price dynamics of a single commodity market. The quantities of supplied and demanded are regarded as a function of time. Nonlinearities in both supply and demand functions are considered. The inventory and the level of inventory are taken into consideration. Due to the fact that the consumer behavior affects commodity demand, and the behavior is influenced not only by the instantaneous price, but also by the weighted past prices, the distributed time delay is introduced. The following kernels are taken into consideration: demand price weak kernel and demand price Dirac kernel. Only one positive equilibrium point is found and its stability analysis is presented. When the demand price kernel is weak, under some conditions of the parameters, the equilibrium point is locally asymptotically stable. When the demand price kernel is Dirac, the existence of the local oscillations is investigated. A change in local stability of the equilibrium point, from stable to unstable, implies a Hopf bifurcation. A family of periodic orbits bifurcates from the positive equilibrium point when the time delay passes through a critical value. The last part contains some numerical simulations to illustrate the effectiveness of our results and conclusions.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"102 - 91"},"PeriodicalIF":0.0,"publicationDate":"2015-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0010","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67365028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract A widely debated topic during the last decades focuses on the companies’ opportunities to acquire corporate competitiveness due to research, innovation and development. Thus, in the context of increased competition and current global challenges, fostering creativity and innovation is a way to boost economic growth and welfare of European countries. New and original ideas, skills, competencies and innovations they all could enable to achieve competitive advantages. Creative ideas and innovative solutions are crucial for the European countries in order to overcome the current economic crisis. This paper aims to study the impact of stimulating creativity methods used by companies on innovative performance of the country. The study is based on identifying correlations between using stimulating creativity methods – such as brainstorming sessions, financial incentives for employees to develop new ideas, job rotation of staff, multidisciplinary or cross-functional work teams, non-financial incentives for employees and training employees on how to develop new ideas or creativity – and, by the other hand, innovative performance of European countries, synthetically expressed by Summary Innovation Index. It also quantifies and scales the intensity of influence using each stimulating creativity method. The results of this study can be a real help for companies to identify the most appropriate stimulating creativity methods in order to increase the innovative performance. Thereby, the main output of the study consists in the fact that using the most effective methods of stimulating creativity the companies will be able to increase their innovative potential and they could obtain long-term competitive advantages.
{"title":"Stimulating Creativity Methods And Innovative Performance In European Countries","authors":"G. Şipoş, Alin Ionescu","doi":"10.1515/tjeb-2015-0013","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0013","url":null,"abstract":"Abstract A widely debated topic during the last decades focuses on the companies’ opportunities to acquire corporate competitiveness due to research, innovation and development. Thus, in the context of increased competition and current global challenges, fostering creativity and innovation is a way to boost economic growth and welfare of European countries. New and original ideas, skills, competencies and innovations they all could enable to achieve competitive advantages. Creative ideas and innovative solutions are crucial for the European countries in order to overcome the current economic crisis. This paper aims to study the impact of stimulating creativity methods used by companies on innovative performance of the country. The study is based on identifying correlations between using stimulating creativity methods – such as brainstorming sessions, financial incentives for employees to develop new ideas, job rotation of staff, multidisciplinary or cross-functional work teams, non-financial incentives for employees and training employees on how to develop new ideas or creativity – and, by the other hand, innovative performance of European countries, synthetically expressed by Summary Innovation Index. It also quantifies and scales the intensity of influence using each stimulating creativity method. The results of this study can be a real help for companies to identify the most appropriate stimulating creativity methods in order to increase the innovative performance. Thereby, the main output of the study consists in the fact that using the most effective methods of stimulating creativity the companies will be able to increase their innovative potential and they could obtain long-term competitive advantages.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"163 - 182"},"PeriodicalIF":0.0,"publicationDate":"2015-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67365042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The Subprime crisis spillovered the returns and volatility from the US stock market to the other integrated economies. The present study attempts to analyze the stock market linkages between the US, India and China, especially during the US subprime Crisis. The technique of Tri-Variate Vector Autoregression and the Spillover Index has been employed so as to analyze the relations during the time period 2007 to 2009. To estimate the time varying risk parameters, the technique of Threshold Generalized Autoregressive Conditional Heteroskedastic [TGARCH (1,1)] model has been used. A uni-directional causality has been observed from the US market to the Indian and Chinese market, whereas another unidirectional causality has also been spotted running from the Chinese market to the Indian market in the context of stock market returns during the crisis period. A unidirectional volatility spillover from the US to the Indian market and from the Indian to the Chinese market has been found to be significant. As per the volatility Spillover Index, the cross market impact on the volatility reduces over a time period 2007-2009, due to the increased impact of the past volatility and the presence of 'leverage effect'. The falling returns added to the volatility in the respective markets. The efficient tests of causality inspired by Hill (2007) reported an indirect impact of the US market volatility on the Chinese market via Indian. The portfolio managers should discount this information well ahead of time to maintain the portfolio values by taking positions in futures and options market.
{"title":"Stock Market Linkages: Evidence From The US, China And India During The Subprime Crisis","authors":"Amanjot Singh, Parneet Kaur","doi":"10.1515/tjeb-2015-0012","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0012","url":null,"abstract":"Abstract The Subprime crisis spillovered the returns and volatility from the US stock market to the other integrated economies. The present study attempts to analyze the stock market linkages between the US, India and China, especially during the US subprime Crisis. The technique of Tri-Variate Vector Autoregression and the Spillover Index has been employed so as to analyze the relations during the time period 2007 to 2009. To estimate the time varying risk parameters, the technique of Threshold Generalized Autoregressive Conditional Heteroskedastic [TGARCH (1,1)] model has been used. A uni-directional causality has been observed from the US market to the Indian and Chinese market, whereas another unidirectional causality has also been spotted running from the Chinese market to the Indian market in the context of stock market returns during the crisis period. A unidirectional volatility spillover from the US to the Indian market and from the Indian to the Chinese market has been found to be significant. As per the volatility Spillover Index, the cross market impact on the volatility reduces over a time period 2007-2009, due to the increased impact of the past volatility and the presence of 'leverage effect'. The falling returns added to the volatility in the respective markets. The efficient tests of causality inspired by Hill (2007) reported an indirect impact of the US market volatility on the Chinese market via Indian. The portfolio managers should discount this information well ahead of time to maintain the portfolio values by taking positions in futures and options market.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"137 - 162"},"PeriodicalIF":0.0,"publicationDate":"2015-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0012","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364892","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The existing studies on private savings have mostly investigated the long run and short association of different variables with private savings, whereas no known study has investigated both long run and short run causality of variables against private savings by using data of Pakistan. The current study used time series data of Pakistan over the period of 1972 to 2012 and employed long run cointegration test, first normalized equation for long run association, vector error correction model for short run association, Toda Yamamoto technique for long run causality and Granger causality test for short run causality. The results suggest that GDP per capita, inflation rate, financial development, dependency ratio and fiscal development have impact on the private savings rate in Pakistan. The findings of the current study can be used to increase the private savings’ rate. In the long run government can increase the private savings by controlling fiscal deficit and promoting the investment by private investors. Whereas, in the short run, government can increase the deposit rate to increase the private savings. The current study is unique in its nature as it simultaneously provides the long run and short run causality and association and can contribute significantly in improving savings rate in developing economies like Pakistan.
{"title":"Determinants Of Savings Behavior In Pakistan: Long Run - Short Run Association And Causality","authors":"Fawad Ahmad","doi":"10.1515/tjeb-2015-0011","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0011","url":null,"abstract":"Abstract The existing studies on private savings have mostly investigated the long run and short association of different variables with private savings, whereas no known study has investigated both long run and short run causality of variables against private savings by using data of Pakistan. The current study used time series data of Pakistan over the period of 1972 to 2012 and employed long run cointegration test, first normalized equation for long run association, vector error correction model for short run association, Toda Yamamoto technique for long run causality and Granger causality test for short run causality. The results suggest that GDP per capita, inflation rate, financial development, dependency ratio and fiscal development have impact on the private savings rate in Pakistan. The findings of the current study can be used to increase the private savings’ rate. In the long run government can increase the private savings by controlling fiscal deficit and promoting the investment by private investors. Whereas, in the short run, government can increase the deposit rate to increase the private savings. The current study is unique in its nature as it simultaneously provides the long run and short run causality and association and can contribute significantly in improving savings rate in developing economies like Pakistan.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"103 - 136"},"PeriodicalIF":0.0,"publicationDate":"2015-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0011","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364834","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The paper deals with the problem of taxation and its potential impact on economic growth and presents some new empirical insights into this topic. The main aim of the paper is to verify an assumed nonlinear impact of corporate tax rates on economic growth. Based on the theory of public finance and taxation, we hypothesize that at relatively low tax rates it is possible that the impact of taxation on economic growth become slightly positive. On the other hand when the tax rates are higher a negative impact of taxation on economic growth could be expected. Despite the fact that the most of the existing studies find a negative linear relationship between these variables, we can also find strong support for a non-linear relationship from several theoretical models as well as some empirical studies. Based on panel data fixed-effects econometric models, we, as well, find empirical evidence for a non-linear relationship between nominal and effective corporate tax rates and economic growth. Our data consists of annual observations for the period 1999 to 2011 for EU Member States. Based on the results, we also estimated the optimal level of the corporate tax rate in terms of maximizing economic growth in the average of the EU countries.
{"title":"The Non-Linear Effect of Corporate Taxes on Economic Growth","authors":"J. Huňady, Marta Orviská","doi":"10.1515/tjeb-2015-0002","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0002","url":null,"abstract":"Abstract The paper deals with the problem of taxation and its potential impact on economic growth and presents some new empirical insights into this topic. The main aim of the paper is to verify an assumed nonlinear impact of corporate tax rates on economic growth. Based on the theory of public finance and taxation, we hypothesize that at relatively low tax rates it is possible that the impact of taxation on economic growth become slightly positive. On the other hand when the tax rates are higher a negative impact of taxation on economic growth could be expected. Despite the fact that the most of the existing studies find a negative linear relationship between these variables, we can also find strong support for a non-linear relationship from several theoretical models as well as some empirical studies. Based on panel data fixed-effects econometric models, we, as well, find empirical evidence for a non-linear relationship between nominal and effective corporate tax rates and economic growth. Our data consists of annual observations for the period 1999 to 2011 for EU Member States. Based on the results, we also estimated the optimal level of the corporate tax rate in terms of maximizing economic growth in the average of the EU countries.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"14 - 31"},"PeriodicalIF":0.0,"publicationDate":"2015-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0002","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364603","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper examines the impact of capital structure, as well as its determinants on the financial performance of Romanian companies listed on the Bucharest Stock Exchange. The analysis is based on cross sectional regressions and factor analysis, and it refers to a ten-year period (2003-2012). Return on assets (ROA) is the performance proxy, while the capital structure indicator is debt ratio. Regression results indicate that Romanian companies register higher returns when they operate with limited borrowings. Among the capital structure determinants, tangibility and business risk have a negative impact on ROA, but the level of taxation has a positive effect, showing that companies manage their assets more efficiently during times of higher fiscal pressure. Performance is sustained by sales turnover, but not significantly influenced by high levels of liquidity. Periods of unstable economic conditions, reflected by high inflation rates and the current financial crisis, have a strong negative impact on corporate performance. Based on regression results, three factors were considered through the method of iterated principal component factors: the first one incorporates debt and size, as an indicator of consumption, the second one integrates the influence of tangibility and liquidity, marking the investment potential, and the third one is an indicator of assessed risk, integrating the volatility of earnings with the level of taxation. ROA is significantly influenced by these three factors, regardless the regression method used. The consumption factor has a negative impact on performance, while the investment and risk variables positively influence ROA.
{"title":"Determinants of Return on Assets in Romania: A Principal Component Analysis","authors":"Vǎtavu Sorana","doi":"10.1515/tjeb-2015-0003","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0003","url":null,"abstract":"Abstract This paper examines the impact of capital structure, as well as its determinants on the financial performance of Romanian companies listed on the Bucharest Stock Exchange. The analysis is based on cross sectional regressions and factor analysis, and it refers to a ten-year period (2003-2012). Return on assets (ROA) is the performance proxy, while the capital structure indicator is debt ratio. Regression results indicate that Romanian companies register higher returns when they operate with limited borrowings. Among the capital structure determinants, tangibility and business risk have a negative impact on ROA, but the level of taxation has a positive effect, showing that companies manage their assets more efficiently during times of higher fiscal pressure. Performance is sustained by sales turnover, but not significantly influenced by high levels of liquidity. Periods of unstable economic conditions, reflected by high inflation rates and the current financial crisis, have a strong negative impact on corporate performance. Based on regression results, three factors were considered through the method of iterated principal component factors: the first one incorporates debt and size, as an indicator of consumption, the second one integrates the influence of tangibility and liquidity, marking the investment potential, and the third one is an indicator of assessed risk, integrating the volatility of earnings with the level of taxation. ROA is significantly influenced by these three factors, regardless the regression method used. The consumption factor has a negative impact on performance, while the investment and risk variables positively influence ROA.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"32 - 47"},"PeriodicalIF":0.0,"publicationDate":"2015-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0003","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364670","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The concept of sustainability has evolved to encompass environmental, social and governance issues regarding corporate behaviour. For the last few years, stakeholders have begun putting pressure on companies to report on sustainability issues. Several national and international regulations and standards have been adopted to guide companies in their reporting. To ensure the accuracy and comparability of non-financial data needed for the stakeholders' decision making process, there is an increasing preference for the external assurance of sustainability reporting. The internationally recognized CSR report assurance standards are the International Standard on Assurance Engagements, ISAE 3000, and AccountAbility's AA1000 Assurance Standard (AA1000AS). This study focuses on the evolution of corporate sustainability reporting, using two non-financial indicators: ESG reporting, and Assurance of ESG reporting. The data for the study is based on content analysis of both CSR reports and corporate websites, courtesy of Sustainalytics. We assessed the evolution of the two indicators from June 2010 to February 2014, for 50 listed European companies and 50 American ones. The comparative approach illustrates the different evolutions of sustainability in Europe and the USA, emphasising the need for stronger regulations and guidelines in the USA, similar to those already implemented in European Countries. For the selected time period, US companies are shown to be worse reporters than European ones, having a negligible number of reports externally verified.
{"title":"2010-2014: A Comparative Evolution of Sustainability Reporting and Its Assurance in Europe and the U.S.A.","authors":"Diana-Maria Tînjală, L. Pantea, Alexandru Buglea","doi":"10.1515/tjeb-2015-0004","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0004","url":null,"abstract":"Abstract The concept of sustainability has evolved to encompass environmental, social and governance issues regarding corporate behaviour. For the last few years, stakeholders have begun putting pressure on companies to report on sustainability issues. Several national and international regulations and standards have been adopted to guide companies in their reporting. To ensure the accuracy and comparability of non-financial data needed for the stakeholders' decision making process, there is an increasing preference for the external assurance of sustainability reporting. The internationally recognized CSR report assurance standards are the International Standard on Assurance Engagements, ISAE 3000, and AccountAbility's AA1000 Assurance Standard (AA1000AS). This study focuses on the evolution of corporate sustainability reporting, using two non-financial indicators: ESG reporting, and Assurance of ESG reporting. The data for the study is based on content analysis of both CSR reports and corporate websites, courtesy of Sustainalytics. We assessed the evolution of the two indicators from June 2010 to February 2014, for 50 listed European companies and 50 American ones. The comparative approach illustrates the different evolutions of sustainability in Europe and the USA, emphasising the need for stronger regulations and guidelines in the USA, similar to those already implemented in European Countries. For the selected time period, US companies are shown to be worse reporters than European ones, having a negligible number of reports externally verified.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"48 - 69"},"PeriodicalIF":0.0,"publicationDate":"2015-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0004","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Gambling is an ancient human activity with a prevalent position nowadays both as a social entertainment activity and as a way to gain money effortless. Every country has its specific pattern in gambling determined both by its cultural and macroeconomic determinants and by its national regulatory framework. Macroeconomic variables as gross national income per capita, annual variation of GDP or unemployment were previously proved to be connected with the gambling industry. The aim of this paper is to analyze the effects generated by the internal and external loss of confidence in the Italian economy, as an effect of the latest financial crisis, over the Italian gambling industry. The level of spread between the 10 years yield of Italian and German government bonds is used as a proxy for the international trust in the Italian economy and the Economic Sentiment Indicator is used to describe the Italian citizens' confidence. The main results show a strong positive, statistically significant correlation between skill games and spread and an unexpected negative significant correlations between spread and lottery, one of the purely fortune games that was often seen as an ultimate chance to survive the crisis. The Economic Sentiment Indicator seems not to be correlated with any of the gambling categories.
{"title":"International Confidence in Italian Economy. A Spread and Gambling Analysis","authors":"Aurora Murgea","doi":"10.1515/tjeb-2015-0005","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0005","url":null,"abstract":"Abstract Gambling is an ancient human activity with a prevalent position nowadays both as a social entertainment activity and as a way to gain money effortless. Every country has its specific pattern in gambling determined both by its cultural and macroeconomic determinants and by its national regulatory framework. Macroeconomic variables as gross national income per capita, annual variation of GDP or unemployment were previously proved to be connected with the gambling industry. The aim of this paper is to analyze the effects generated by the internal and external loss of confidence in the Italian economy, as an effect of the latest financial crisis, over the Italian gambling industry. The level of spread between the 10 years yield of Italian and German government bonds is used as a proxy for the international trust in the Italian economy and the Economic Sentiment Indicator is used to describe the Italian citizens' confidence. The main results show a strong positive, statistically significant correlation between skill games and spread and an unexpected negative significant correlations between spread and lottery, one of the purely fortune games that was often seen as an ultimate chance to survive the crisis. The Economic Sentiment Indicator seems not to be correlated with any of the gambling categories.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"70 - 89"},"PeriodicalIF":0.0,"publicationDate":"2015-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0005","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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