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.

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.

EFFECTS OF INTERNATIONAL FINANCIAL CRISIS ON THE FINANCIAL SYSTEM AND MONETARY POLICY

The current financial and economic crisis seems to be unprecendentely in the last half century. The economic downturn extented in the USA, Europe and Japan seems to be much more painful than the economic downturn in 1981-1982. A massive drop of confidence is under way, both across the business sector, and the consumers, both reacting by cutting costs. The U.S. Government and some governments in Europe, are trying to recover stability, and nationalized parts of their financial sectors to an extent that is in conflict with the modern capitalism basics. Today the entire world seems to change its direction, shaping its course to a period wherein the state role will be higher, and that of the private sector will be lower. This will be probably the most dramatic consequence of the current economic crisis.liquidity, inflation, financial-accounting reportings, fiscal policy, financial markets

Franchise in Romanian tourism

Both on national and international scale, tourism business is improving continuously, by adjusting to the tourists' demands, resulting in modification and adaptation of organization and association forms in this area. One of these is the franchise affiliation, an original way of doing business that combines the entrepreneurs interest in keeping their own undertaking with that belongs to a group with well-known brand which aims to expand on national and international market. This paper will discuss two important areas of the Romanian tourism industry in which franchise agreement is applied: travel agencies franchise and hotel franchise. On a national scale, franchise was adopted as an expanding strategy by the travel agencies, on one hand, notorious tour-operators that has accumulated know-how and has proven its successful applicability, and, on the other hand, small and medium entrepreneurs who saw in the franchise affiliation an opportunity to develop faster and more reliable business. Also, the Romanian hotel owners with financial resources have seen in hotel franchise an easier way to obtain higher profits. In today's competitive and global hotel market, being part of a group of hotels that share a recognized brand and provide quality services might mean the difference between financial success and failure.franchise, know-how, brand, travel agents franchise, hotel franchise

New approaches regarding business combinations

The accounting for business combinations is a very important area, therefore it needs a high quality accounting standard that could be used for both domestic and cross-border financial reporting. IASB issued in January 2008 the revised IFRS 3 Business Combinations, which aims to help both users and preparers of the consolidated financial statements by improving the relevance, reliability and comparability of the information reported by companies around the world. This article aims to highlight few significant changes in the accounting treatment of business combinations that have arisen from the revised IFRS 3, focusing on the accounting principles surrounding the recognition and measurement of the identifiable net assets of the acquiree and any non-controlling interest in the acquiree and on the implications for calculating and measuring goodwill.control, acquisition method, fair value, non-controlling interest, goodwill

Issues on Hedge Effectiveness Testing

The starting point for risk management and hedging lies in understanding a corporation’s exposure to different risks. Hedging is vital for corporate risk management, involving reducing the exposure of the company to particular risks. Hedge effectiveness testing permits firms to assess if they match the timing of the gains and losses of hedged items and their hedging derivatives. In principle, a hedge is highly effective if the changes in fair value or cash flow of the hedged item and the hedging derivative offset each other to a significant extent. This article reviews the concepts of accounting and economic hedging, and presents the requirements for testing the hedge effectiveness.hedge accounting, hedging effectiveness, hedging ineffectiveness, highly effective, effectiveness test