Exploring the Link between Idiosyncratic and Fundamental Indicators. Evidence on CEE Corporate Segment

This paper explores the link between idiosyncratic and fundamental dimensions of the corporate finance within CEE countries. We elaborate a Vector Error Correction Model integrating both idiosyncratic and macro related indicators. We expect idiosyncratic variables to be closely related to the macro fudamentals and we anticipate the sign of the relation. Conclusions regarding the long term relationship between these variables differ by country from the perspective of the way the macro related variables enter the cointegration equations. The impact is different according to the peculiarities of the macroeconomic architecture.idiosyncratic variables, macroeconomic

Which are the challenges of the corporate finance within East European emerging countries? Overview on the peculiarities of the finance mechanisms

The European East emerging countries represent an interest research topic both in terms of macroeconomic environment and corporate finance decision. Their evolution within the process of nominal and real convergence process requires a challenging analysis of the way the main macroeconomic environment affects corporate segment. This analysis will focus in a first stage on the macroeconomic environment, highlighting out the way it evolved during the transition process from the centralized and planed economy to the market oriented one. Secondly, the focus will be oriented on the corporations based in these countries. Their finance decision will be analyzed in comparison with the corporations located into the emerging countries and moreover a deep interest will be granted to their leverage, especially from the point of view of the way finance mechanisms can be valorized based on their balance sheet data.rating, sovereign risk, idiosyncratic risk.

Does sovereign risk have an effect on corporate rating? Case-study for emerging versus developed countries

This paper focuses on analyzing the correlation between corporate and country rating. Is there an impact from the part of the sovereign risk towards the company financial and economical performance? Can this impact be differentiated according to emerging and developed countries? If yes, can it be quantified? Does the sovereign ceiling continue to be an outstanding theory? These are the main questions this article proposes to offer an answer to. A case study using the financials of 150 companies activating in various fields has been performed in order to highlight out the correlation between the two variables.rating, sovereign risk, idiosyncratic risk, globalization, sovereign ceiling.

CEE corporate finance peculiarities: comparative approach in relation with developed countries

In order to reveal the corporate finance peculiarities, we conduct a panel data study on companies located in European emerging (Czech, Poland, Slovakia, Hungary and Romania) and developed countries (United Kingdom, France, Spain, Italy and Germany). We identify specific elements at country level which strengthen the assumptions of heterogeneity at the level of corporate finance. We reveal that both firm specific and common factors have an impact on corporations; nevertheless, comparative to similar works, the degree of heterogeneity is lower, confirming the theories of CEE intercountry high correlation.CEE, corporate finance, capital structure, performance.

THE RELATION BETWEEN FINANCIAL MANAGEMENT AND CORPORATE GOVERNANCE: ANALYTICAL APPROACH AT THE LEVEL OF THE RISK MANAGEMENT STRATEGIES

This paper presents the contribution of corporate governance to the risk management system of an enterprise from the perspective of the financial leverage. We assume that companies with a strong corporate governance framework are likely to enhance the optimality of their financial structure. We perform a literature overview on this topic, in parallel with an empirical approach that brings forth the effect of corporate governance framework on the company financial structure, with a special focus on leverage. The empirical approach is developed using the Ordinary Least Squares methodology; the results of the research reflect a strong impact of corporate governance on the company financial structure. We construct this finding from the perspective of the beneficial effects of an enhanced corporate governance framework which reduces agency costs, conferring to the company more credibility in the eyes of creditors.capital structure, financial management, governance, leverage, risk management

THEORETICAL ASPECTS REGARDING PUBLIC EXPENDITURES

The first part of this work will treat the theoretical aspects of public expenditures. Taking the state as primary supplier of public goods, we have presented the concepts revolving around public and private goods, the theory of pure public goods, the four categories of goods and services, ”club theory”etc. In the second part we analyse different concepts regarding public expenditures from an economic point of view, the subsystems of public expenditures, public versus budgetary expenditures, respectively public versus private expenditures

Qualitative Techniques for Evaluating the Impact of Risk on Organizations

Certain events as September 11, 2001, the flooding in Europe and Romania, Katrina hurricane from last year or the terrorists attacks from London and Madrid – are all compelling to understand the importance of risk exposures and the possibilities to identify them or at least to approximate their occurrence. To a smaller extend, all of us, individuals and companies, exposed to risks in our private and professional lives. The human impact of these exposures is increasing from year to year and it is important to estimate it. Two qualitative methods of approximating the impact of exposures over organizations are the standard bet and the perception of risks.group exposure, risk analysis, risk psychology, risk shift standard bet.

Operational multidimensional character of the credit-scoring models, applicable to the BSE listed companies, section of equipments

This paper focuses on the two-side practical approach of credit-scoring models: corporate default prediction and corporate economical performance hierarchization. Taking as database the most 9 representative listed companies on the Bucharest Stock Exchange within the equipment field, the case-study implies the elaboration using Linear Discriminant Analysis of a specific credit scoring model, especially adapted to the afore-mentioned sample of firms, and the valorization of this credit-scoring model as a corporate default predictor and also as an economical performance hierarchization tool..default valuation, default predictors, credit-scoring model, cluster analysis.

Modern methods for risks identification in risk management

The process of risk identification is the most important in the process of risk management. If a risk is not identified correctly, then the risk manager will not be able to cuantify it and find the proper method of counteracting the significant results of risk exposures. In the last years, modern techniques of identifying exposures in the organizations are being applied to simplify and to exhaust the list of possible risks with which an organization can come accross in its activity - risk mapping, risk profiling or risk card.risk card; risk mapping; risk classification; process, risk profiling; history importance value.

ANALYSIS ABSORPTION CAPACITY OF EUROPEAN FUNDS UNDER THE OPERATIONAL PROGRAMME HUMAN RESOURCES DEVELOPMENT

One of the main goals of the European Union is the economic progress. In the last 50 years, and especially beginning with the ‘80s, remarkable efforts have been made for removing the borders between the EU national economies and for creating a unique market where goods, persons, capital and services could move freely. Commercial interchanges between UE states have significantly grown and at the same time EU has become a global commercial force. EU’s goal is to become the most dynamic economy based on global recognition. This implies a significant investment in research, education and forming, which allows the population to have access to this new information. This research work displays diverse aspects concerning the Romania’s ability draw of irredeemable funds in period 2007 – 2013, focusing on human capital development activity. Today, the problem absorptions are no longer able to develop projects, that knowing a significant improvement but the stage of implementation and funding