INCREASING THE MANAGEMENT AND PRODUCTIVE CAPACITY OF ROMANIAN SMES AND LARGE ENTERPRISES BY ACCESION OF STRUCTURAL FUNDS a€“ SOP IEC

The European Integration came with new challenges for the Romanian enterprises especially for the SMEs, the opportunities arising from operating on the European Single Market and the possibility for accession of European Regional Development Funds. The maEuropean financing, large enterprises, small and medium enterprises, POS CCE, SOP IEC, structural funds

FINANCIAL INDICATORS FOR THE IMPLEMENTATION OF AN EUROPEAN FUNDED INVESTMENT PROJECT UNDER SOP IEC PROGRAMME – CASE STUDY OF A ROMANIAN SME

The European Integration came with new challenges for the Romanian enterprises especially for the SMEs, the opportunities arising from operating on the European Single Market and the possibility for accession of European Regional Development Funds. The main programme designed to offer access for small, medium and large Romanian enterprises to European funding is the Sectorial Operational Programme “Increase of Economic Competitivenessâ€- SOP IEC. This paper will analyze the area of intervention “D1.1. Productive and environment friendly investments and preparation for market competition in which Romanian SMEs†are competing to access European funding in order to develop their activities or to extend them into new ones. One of the main challenges for these SMEs is to generate, fulfil and to respect the financial indicators of the programme, which are part of the financial analysis of the project.Financial Analysis, Cost benefit Analysis, Financial Simulation European Union, Structural Funds, SOP IEC

DETERMINATION OF RESIDUAL VALUE WITHIN THE COST BENEFIT ANALYSIS FOR THE PROJECTS FINANCED BY THE EUROPEAN UNION

This paper will be later used within the Doctoral thesis: "The Mechanism of Financing Investment Projects by Usage of European Structural Funds", which is currently under development at the University Babeș Bolyai Cluj Napoca, Faculty of Economics and Business Management, under the coordination of the prof. univ. dr. Ioan Trenca. An increasing debate is rising recently between the academic community, the business community, the private lending institutions(banks, investment funds, etc.) and the officials of the Romanian Government and of the European Union regarding the proposed method for calculation of the residual value in the European financed investment projects. Several methods of calculation of the Residual Value were taken into consideration and contested by different parties in order to prepare and to submit financial analysis studies for investment projects proposed to be financed within the European Regional Development Fund(ERDF). In this context, the present paper proposes to address the three main methods of calculation of the residual value and later to study its impact over the indicators, especially over the Internal Rate of Return, obtained in the financial analysis for an investment project proposed by a Romanian medium sized company. In order to establish the proper method which should be used for selection and calculation of the residual value previously published studies and official documentations were analyzed. The main methods for calculation of the residual values were identified as being the following: A. the residual market value of fixed assets, as if it were to be sold, B. accounting economic depreciation formula and C. by using the net present value of the cash flows. Based on these methods the research model was elaborated, and using the financial data of the proposed infrastructure investment was created a case study. According to the realized study a pattern was established for proper determination of residual value and for determination of IRR and methods A and C were proposed to be used. This paper tries to analyze a specific problem of the Romanian enterprises which access European funding, so it can be further used to improve the current methodology of the ERDF programme in Romania: Sectorial Operational Programme "Increase of Economic Competitiveness".Cost benefit Analysis, Residual value, IRR, Investment, Structural Funds, Valuation

INCREASE IN THE ROLE OF THE FINANCIAL SYNTHESIS REPORTS FOR ACCESSION OF THE EUROPEAN STRUCTURAL FUNDS

European integration is supported through important financial resources in order to sustain the investment effort for aligning the business infrastructure and increase in the business competitiveness in order to fulfill the European Union standards. The financial management, a basic component of the general management, has as scope to realize complex financial analysis in order to substantiate the decisions for investments and financing which should ensure the maximization of results, ensuring also the elaboration of the project budget as an essential document in the identification of the needs for resources and for obtaining the non-reimbursable financial sources. An essential role in the investment decision making, having as support European funding, is realized by the financial-accounting reporting documents such as balance sheet, profit and loss account, table of the treasury flows, which together with a realistic established actualization rate ensures the relevance and efficiency of the financial indicators: Net present Value(NPV), Internal Rate of Return(IRR), the investment recovery period, the benefit/cost ratio. This study has as its goal to realize a critical analysis over the main simulation methods and techniques for forecasting annual return based on its growth rate, which should ensure the success of the implementation and operation of an investment realized through European structural funds respecting also the requirements for minimization of risks. In this research it is shown the importance of proper generation/modeling of the annual turnover in an investment project. Several methods were presented and case study was realized. Since the annual turnover constitutes the basis for the entire financial analysis it is very important that a realistic growth rate is used. Otherwise the provisions within the financial analysis of the investment (including CBA), the project implementation strategy and later the plan for the utilization of the newly realized investment might prove difficult to be fulfilled.Structural funds, Financial Statements, Annual Turnover, Annual Growth rate

INCREASING THE MANAGEMENT AND PRODUCTIVE CAPACITY OF ROMANIAN SMES AND LARGE ENTERPRISES BY ACCESION OF STRUCTURAL FUNDS a€“ SOP IEC

The European Integration came with new challenges for the Romanian enterprises especially for the SMEs, the opportunities arising from operating on the European Single Market and the possibility for accession of European Regional Development Funds. The m

GEOGRAPHICAL INFORMATIONAL SYSTEMS - APPLICABILITY IN INVESTMENTS AND BANKING

Supported by information systems, the regional or world economy transformed itself in a global economy. Taking fast and optimal decisions is needed for each step an individual or an organization makes in order to support competitiveness in the context of radical evolution of the world economy. When dealing with fundamental decisions, spatial information plays an important role because it allows integration of data from various domains, having multiple connections, as well as their visualization and analysis in a useful, suggestive and efficient manner. Decision support systems (DSS) are spatially based computer applications and data which assists managers in making decisions. Since Geographical Informational Systems technology has a great deal to offer to the mortgage finance industry the goal of this paper is to analyze the main theoretical and practical approaches regarding the role of the geographic location and spatial relationships over the outcomes of the banking, housing and mortgage market.Investment, Banking, GIS Modeling, Decision Making System, Spatial Analysis

CONSIDERATIONS REGARDING THE EVOLUTION OF THE LIQUIDITY AND SOLVENCY INDICATORS OF THE MOST IMPORTANT ROMANIAN PRODUCTION COMPANIES IN THE PERIOD 2014-2017

The production sector from Romania had to face a huge number of challenges from 1990 to 2017. Most of these challenges were witnessed by the previously owned state companies which had to reform in order to survive. This process was a very long and difficult one, since most of the previously state-owned companies had difficulties in adapting to the private environment. Thus, the number of these companies which are still active on the Romanian Stock Exchange and which constitute interest for the private investors was reduced significantly. Under these circumstances the goal of the current paper was to analyze the financial health of 10 most significant production companies registered on the Bucharest Stock Exchange (BVB) especially when considering the evolution of their liquidity and solvency indicators. The study considered for analysis the financial data presented in their balance sheets and profit and loss accounts which were reported on the Bucharest Stock Exchange website: www.bvb.ro or published in their annual reports. The study concentrated on a set of six liquidity and solvency indicators considered most representatives by both the investors, banks and the business environment. The notions of liquidity and solvency are two of the most important issues in financial analysis at the level of the companies both from theoretical and practical point of views. Both referring to the financial health of the companies these indicators have some considerable differences in calculation and interpretation, but are considered equally important. In order to have a healthy company the financial manager should make proper decisions to obtain, at least, satisfactory results on both set of indicator

DETERMINATION OF RESIDUAL VALUE WITHIN THE COST BENEFIT ANALYSIS FOR THE PROJECTS FINANCED BY THE EUROPEAN UNION

This paper will be later used within the Doctoral thesis: The Mechanism of Financing Investment Projects by Usage of European Structural Funds, which is currently under development at the University Babes Bolyai Cluj Napoca, Faculty of Economics and Business Management, under the coordination of the prof. univ. dr. Ioan Trenca. An increasing debate is rising recently between the academic community, the business community, the private lending institutions(banks, investment funds, etc.) and the officials of the Romanian Government and of the European Union regarding the proposed method for calculation of the residual value in the European financed investment projects. Several methods of calculation of the Residual Value were taken into consideration and contested by different parties in order to prepare and to submit financial analysis studies for investment projects proposed to be financed within the European Regional Development Fund(ERDF). In this context, the present paper proposes to address the three main methods of calculation of the residual value and later to study its impact over the indicators, especially over the Internal Rate of Return, obtained in the financial analysis for an investment project proposed by a Romanian medium sized company. In order to establish the proper method which should be used for selection and calculation of the residual value previously published studies and official documentations were analyzed. The main methods for calculation of the residual values were identified as being the following: A. the residual market value of fixed assets, as if it were to be sold, B. accounting economic depreciation formula and C. by using the net present value of the cash flows. Based on these methods the research model was elaborated, and using the financial data of the proposed infrastructure investment was created a case study. According to the realized study a pattern was established for proper determination of residual value and for determination of IRR and methods A and C were proposed to be used. This paper tries to analyze a specific problem of the Romanian enterprises which access European funding, so it can be further used to improve the current methodology of the ERDF programme in Romania: Sectorial Operational Programme Increase of Economic Competitiveness

GIS-Based Survey over the Public Transport Strategy: An Instrument for Economic and Sustainable Urban Traffic Planning

Traffic has a direct impact on local and regional economies, on pollution levels and is also a major source of discomfort and frustration for the public who have to deal with congestion, accidents or detours due to road works or accidents. Congestion in urban areas is a common phenomenon nowadays, as the main arteries of cities become congested during peak hours or when there are additional constraints such as traffic accidents and road works that slow down traffic on road sections. When traffic increases, it is observed that some roads are predisposed to congestion, while others are not. It is evident that both congestion and urban traffic itself are influenced by several factors represented by complex geospatial data and the spatial relationships between them. In this paper were integrated mathematical models, real time traffic data with network analysis and simulation procedures in order to analyze the public transportation in Oradea and the impact on urban traffic. A mathematical model was also adapted to simulate the travel choices of the population of the city and of the surrounding villages. Based on the network analysis, traffic analysis and on the traveling simulation, the elements generating traffic congestion in the inner city can be easily determined. The results of the case study are emphasizing that diminishing the traffic and its effects can be obtained by improving either the public transport density or its accessibility

THE ANALYSIS OF ABSORPTION CAPACITY OF EUROPEAN FUNDING IN THE NORTH WESTERN REGION OF ROMANIA

This paper analyzes the Romanian absorption capacity of the funds allocated through the REGIO programme, which is part of ERDF programme. Within the paper are presented the concept of absorption capacity and several opinions regarding its main composing elements. Also the Regio programme, its main axis and its budget is briefly presented. In the last chapter of the analysis a thorough analysis of the implementation of REGIO in the Romanian North-West Region was carried out and several causes for the low absorption of European Founds have been identified.. The process of improving the absorption capacity of European Funds is still at the beginning in Romania and will certainly become an important issue over the following years at all levels of the Romanian society and at the level of the European Funding Authorities as well