The Evaluation of the Communication of the Romanian Listed Companies with the Investors

2020 ◽  
Vol 18 (160) ◽  
pp. 801-811
Author(s):  
Camelia-Daniela HATEGAN ◽  
Keyword(s):  
Financial Reporting ◽  
Econometric Model ◽  
Stock Exchange ◽  
Communication Strategy ◽  
Investor Relations ◽  
Good Communication ◽  
Financial Communication ◽  
Close Relationship ◽  
Majority Shareholder ◽  
Over Time

Investor relations and financial communication are an ongoing challenge for a company's governance. Good communication and a close relationship with the investors contribute to strengthening the company's image and confidence of all stakeholders. Research on this topic has identified the requirements underlying the effective communication of companies, namely the existence of a department on investor relations, communication strategy, practices used, the content of the communication and its effects. The purpose of the paper is to make an assessment of the level of communication registered by the Romanian companies listed on the main market at the Bucharest Stock Exchange, starting from the assessment made by the Romanian Investor Relations Association in correlation with factors that may influence communication, respectively the trading category in which the company is listed, profitability, dividends paid, form of ownership of the majority shareholder, existence of non-financial reporting. From the proposed econometric model, it resulted that all the variables tested influence the level of communication, of which the trading category and the existence of non-financial reporting are most closely related. The level of communication with investors of Romanian companies is still low, but it has an upward evolution over time, so that at the next evaluation it will be possible to ascertain the amplitude of this evolution and other influencing factors will be identified.

The Implications of the Audit Committee in the Financial Reporting of the Entities Listed on the Bucharest Stock Exchange

2021 ◽  
Vol 19 (161) ◽  
pp. 156-171
Author(s):  
Alin-Constantin DUMITRESCU ◽  
◽  
Ovidiu-Constantin BUNGET ◽  
Valentin BURCA ◽  
Oana BOGDAN ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Econometric Model ◽  
Stock Exchange ◽  
Audit Committees ◽  
Decision Making Process ◽  
Policies And Procedures ◽  
Over Time

Over time social and economic events have reflected that the role of supervisory committees and especially of audit committees within entities is essential for ensuring sustainable development, increasing transparency and confidence. The purpose of the paper is to study the role of the audit committee in the financial reporting process of the companies listed on the Bucharest Stock Exchange in the period 2015-2019. The proposed econometric model shows that the management of the entity is oriented towards reducing deficiencies and non-compliances with internal policies and procedures, giving internal control a central role in the decision-making process.

Reporting Significant Transactions with Affiliated Parties of Listed Companies on Stock Exchange

2021 ◽  
Vol 19 (162) ◽  
pp. 359-372
Author(s):  
Lioara-Veronica PASC ◽  
◽  
Camelia-Daniela HATEGAN ◽  
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Mandatory Reporting ◽  
Annual Reports ◽  
Legal Requirements ◽  
Corporate Transparency ◽  
Reporting Requirements ◽  
Energy Companies ◽  
Majority Shareholder ◽  
Over Time

The complexity of related party transactions may lead to subjective interpretations of their reporting requirements. The objective of the paper is to examine the nature of significant transactions with related parties, how they were reported in accordance with legal requirements, and how the reported issues are correlated with the information in the annual financial statements. The study includes a synthesis of the evolution of specific regulations in Romania, as well as a centralization of the information highlighted in current reports published by entities and annual reports for 2017-2019, in order to identify issues to consider in the process reporting and publishing, in the case of companies carrying out such transactions. The sample consists of energy companies listed on the Bucharest Stock Exchange, included in the BET index, in which the state is the majority shareholder. The results of the study showed that reporting requirements have changed over time, both in terms of defining transactions and mandatory reporting ceilings. The analysis found different interpretations of companies on reporting obligations which can lead to difficulties in correlating and comparing data in the context of corporate transparency. The conclusion is that additional factors arise when reporting these types of transactions, which must be taken into account so that there is no impact on their completeness and accuracy, without affecting the auditor's opinion.

scholarly journals Econometric Model for Readjusting Significance Threshold Levels through Quick Audit Tests Used on Sustainable Companies

2020 ◽  
Vol 12 (19) ◽  
pp. 8136
Author(s):  
Veronica Grosu ◽  
Dorel Mateș ◽  
Monica-Laura Zlati ◽  
Svetlana Mihaila ◽  
Marian Socoliuc ◽  
...  
Keyword(s):  
Causal Relationship ◽  
Financial Reporting ◽  
Econometric Model ◽  
Stock Exchange ◽  
Threshold Level ◽  
Point Of View ◽  
Quality Of Reporting ◽  
Threshold Levels ◽  
Significance Threshold ◽  
Qualitative Approaches

Given the present-day economic situation, which is characterized by economic destabilization as a result of the pandemic crisis, auditors are facing the issue of establishing materiality, which is partly based on the fact that a certain level of financial misstatement influences the decisions of the involved parties. The aim of the present study is to suggest an econometric model for readjusting significance threshold levels through quick audit tests used on sustainable companies. The main objectives of the study are to emphasize the causal relationship between the manifestation of constant errors in financial reports and the inconsistency of audit opinions, as well as to put into practice the causal relationship that exists between the improvement of the audit function and sustainability itself, given companies’ crisis situation. In this particular context—based on the entire sample of companies listed in the Bucharest Stock Exchange (BVB), Bucharest Exchange Trading Plus category (BET Plus)—we estimated a number of financial indicators between 2009 and 2018 so that we could determine the materiality of accounting errors identified by auditors in order to express an opinion regarding the reliability and accuracy of financial reporting. The study’s key findings show that, given the economic crisis, the significance threshold level is a volatile test and it needs to be reconsidered taking into account the decline in the quality of reporting and, indirectly, the disclosure of financial information. From a holistic point of view, we believe that our study will have a significant impact on both practitioners and regulatory entities by shifting the qualitative approaches of analysis itself towards key prudential regulations stipulated by International Standard on Auditing (ISA) 320, ISA 450 and ISA 700. The study also highlights the process of refining information sources that can impact the significance, understanding and materiality of business decisions.

Pengaruh Konvergensi International Financial Reporting Standards (Ifrs) Terhadap Penghindaran Pajak(Tax Avoidance)

2018 ◽  
Vol 26 (2) ◽  
pp. 158-169
Author(s):  
Umi Wahidah ◽  
Sri Ayem
Keyword(s):  
Financial Reporting ◽  
Tax Evasion ◽  
Stock Exchange ◽  
Control Variable ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Control Variables ◽  
Financial Reporting Standards

This research aimed to examine the effect of the convergence of International Financial Reporting Standards (IFRS) on tax avoidance on companies listed in Indonesia Stock Exchange. Tax avoidance that used in this research was Cash Efective Tax Rate (CETR). This research is also use the control variable to get other different influence that different such as CSR, size, and earning management (EM. This research used populations sector of transport service companies that listed in Indonesia Stock Exchange. The data of this research taken from secondary data that was from the Indonesia Stock Exchange in the form of Indonesian Capital Market Directory (ICMD) and the annual report of the company 2011-2015. The method of collecting sample was purposive sampling technique, the population that to be sampling in this research was populations that has the criteria of a particular sample. Companies that has the criteria of the research sample as many as 78 companies. The method of analysis used in this research is multiple regression analysis. Based on regression testing shows that the convergence of International Financial Reporting Standards (IFRS) has a positiveand significant impact on tax evasion. This shows that IFRS convergence actually improves tax evasion practices. The control variables of firm size and earnings management also significantly influence the application of IFRS in improving tax avoidance practices, while CSR control variables have no role in convergence IFRS in improving tax evasion practice.

Web-Based Financial Reporting: An Interpretative Model for Corporate Communications on Social Media

2017 ◽  
pp. 79-112
Author(s):  
Paola Ramassa ◽  
Costanza Di Fabio
Keyword(s):  
Social Media ◽  
Financial Reporting ◽  
Building Blocks ◽  
Corporate Communications ◽  
Distinctive Features ◽  
Financial Communication ◽  
Use Of Social Media ◽  
Key Aspects ◽  
And Diffusion ◽  
Interpretative Model

This paper aims at contributing to financial reporting literature by proposing a conceptual interpretative model to analyse the corporate use of social media for financial communication purposes. In this perspective, the FIRE model provides a framework to study social media shifting the focus on the distinctive features that might enhance web investor relations. The model highlights these features through four building blocks: (i) firm identity (F); (ii) information posting (I); (iii) reputation (R); and (iv) exchange and diffusion (E). They represent key aspects to explore corporate communication activities and might offer a framework to interpret to what degree corporate web financial reporting exploits the potential of social media. Accordingly, the paper proposes metrics based on this model aimed at capturing the interactivity of corporate communications via social media, with a particular focus on web financial reporting. It tries to show the potential of this model by illustrating an exploratory empirical analysis investigating to what extent companies use social media for financial reporting purposes and whether firms are taking advantage of Twitter distinctive features of interaction and diffusion.

DETERMINAN TIMELINESS OF FINANCIAL REPORTING PADA INDUSTRI MANUFAKTUR INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 73
Author(s):  
Mohamad Zulman Hakim
Keyword(s):  
Financial Reporting ◽  
Manufacturing Industry ◽  
Sampling Method ◽  
Stock Exchange ◽  
Financial Statements ◽  
Company Size ◽  
Return On Assets ◽  
Financial Report ◽  
Independent Variables ◽  
Equity Ratio

This study aims to prove empirically the factors that affect the Timeliness of Financial Reporting. These factors are Return on Assets (ROA), Debt to Equity Ratio (DER), Company Size and Auditor Opinion as Independent Variables and Timeliness of Financial Statements as Dependent Variables.The population of this study is the Manufacturing Industry listed on the Indonesia Stock Exchange period 2012-2014. The sample was determined by purposive sampling method and 66 companies were obtained. The data used are obtained from the published company financial report. The method of analysis used is logistic regression at 5% significance level.Empirical study shows that ROA has significant effect on Timeliness of Financial Reporting. DER, Company Size and Auditor Opinion have no significant effect on Timeliness of Financial Reporting. Keywords:    ROA, DER, Company Size, Auditor Opinion, Timeliness of Financial Reporting

Interim Reporting Frequency and the Mispricing of Accruals

2018 ◽  
Vol 32 (3) ◽  
pp. 29-47
Author(s):  
Shou-Min Tsao ◽  
Hsueh-Tien Lu ◽  
Edmund C. Keung
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Data Availability ◽  
Financial Reports ◽  
Regulatory Changes ◽  
Sample Composition ◽  
Reporting Frequency ◽  
Over Time ◽  
Jel Classifications ◽  
Accrual Mispricing

SYNOPSIS This study examines the association between mandatory financial reporting frequency and the accrual anomaly. Based on regulatory changes in reporting frequency requirements in Taiwan, we divide our sample period into three reporting regimes: a semiannual reporting regime from 1982 to 1985, a quarterly reporting regime from 1986 to 1987, and a monthly reporting regime (both quarterly financial reports and monthly revenue disclosure) from 1988 to 1993. We find that although both switches (from the semiannual reporting regime to the quarterly reporting regime and from the quarterly reporting regime to the monthly reporting regime) hasten the dissemination of the information contained in annual accruals into stock prices and reduce annual accrual mispricing, the switch to monthly reporting has a lesser effect. Our results are robust to controlling for risk factors, transaction costs, and potential changes in accrual, cash flow persistence, and sample composition over time. These results imply that more frequent reporting is one possible mechanism to reduce accrual mispricing. JEL Classifications: G14; L51; M41; M48. Data Availability: Data are available from sources identified in the paper.

Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues

2016 ◽  
Vol 31 (4) ◽  
pp. 449-460 ◽  
Author(s):  
Qing L. Burke ◽  
Tim V. Eaton
Keyword(s):  
New York ◽  
Initial Public Offering ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Accounting ◽  
Learning Needs ◽  
York Stock Exchange ◽  
Accounting Courses ◽  
Chinese Company ◽  
Public Offering

ABSTRACT In September 2014, the Chinese e-commerce giant Alibaba Group Holding Limited issued shares on the New York Stock Exchange, making it the world's largest initial public offering. This case examines different aspects of the Alibaba Group's initial public offering, including Alibaba Group's business model, financial reporting and corporate governance, as well as the macroeconomic, political, and legal environment in which the company operates. In addition, this case will familiarize students with the risks and opportunities for Chinese companies and investors when a Chinese company lists in the U.S. This case is suitable for financial accounting and international accounting courses at the intermediate and advanced levels for undergraduates as well as graduate students. The case is scalable, and instructors can choose from multiple sections of the case and different case questions to tailor the case difficulty to their students' learning needs.

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