VIEWS ON THE OFFENCE OF HUMAN TRAFFICKING

In the international background of the current period, Romania is included in the "Balkan Route" of illegal migration, which influences all the main areas of society, including the security of the state and that of its citizens.One of the main issues in the last decade, at national and international level, is the human trafficking, linked to the illegal migration, which is constantly increasing.Human trafficking is an offense which affects human rights, with profound economic and social interference, due to the mobility and perceivable advantages of the phenomenon.Until 2014, human trafficking was provided for by law 678/2001 regarding the prevention and control of human trafficking, but with the entry into force of the New Criminal Code this offense was covered by the same code, provided by art. 210.

The impact of building location on green certification price premiums:Evidence from three European countries

Green building certification has gained global prominence in the wake of the recent calls for ensuring the sustainable development of expanding urban areas. This trend rooted in the fact that buildings are among the main sources of energy consumption and CO2 emissions. Green certification therefore emerged in response to sustainability concerns throughout the building sector. Nonetheless, the significant costs required by green investments have elicited scholars' attention, in an attempt to determine if the benefits of green certification outweigh its costs. This study uses a proprietary data-set of office building transactions from three major European countries - Finland, France, and Germany - in order to analyze the price premium of green certification over the 2010-2015 period. Considering the increasing demand for certification in the European Union (EU) after 2010, it is expected that green office buildings would sell at higher prices relative to non-green buildings. Empirical tests suggest that office buildings with green certification have a 19 percent higher price relative to non-certified buildings. Further, the study aims to assess whether the premium varies with the location of the green buildings within the urban area. Given the price premium brought by a central location - irrespective of green certification - it is expected that the price premium of green investments would incrementally increase in non-central locations. The distance variable is hand-constructed based on geocoding all properties in the dataset - empirical results indicate that the green certification price premium incrementally increases by 10.5 percent for 1-km distance from the city center. Further tests show that the distance effect becomes insignificant in both (i) large cities and (ii) cities of under 200,000 inhabitants. In these two contingencies, the price premium associated with central locations is reduced - which also diminishes the relevance of the green buildings' location. The empirical results are robust to eliminating 2010 and 2011 from the sample and to employing a propensity score matching approach, aimed at increasing the similarity of the treatment and control groups. This paper adds to the rising literature on the topic of green buildings, as it is the first international study to assess the price impact of green certification as a function of office building location

Save money to lose money? Implications of opting out of a voluntary audit review for a firm’s cost of debt

An audit review (AR) is a mechanism used by boards to assess the quality of interim financial reports on a timely basis. In Canada, the AR is voluntary, with listed firms mandated to disclose when they choose to not purchase additional audit verification. Given the relatively low cost of an AR, opting out of it can be regarded as a negative signal, especially in the context of lenders' sensitivity to downside risk. Using a sample of 7,585 firm-year observations from 1,616 public firms in Canada over the period 2004-2015, we document that firms without a voluntary AR have a higher cost of debt than firms with an AR. Furthermore, after firms opt out of the AR, the increase in the cost of debt is accompanied by a rise in discretionary abnormal accruals and managers' stock-based compensation. Moreover, no-AR firms are more likely to reduce post-switch private borrowing and have lower equity analyst following. Our study is the first to document that although listed borrowers that opt out of an AR have a higher cost of debt financing, they are concurrently able to engage in more earnings management and grant their managers higher stock-based compensation because of lower external monitoring

The Effect of Auditor Style on Reporting Quality:Evidence from Germany

This paper examines whether the ‘style’ of individual auditors influences financial reporting quality in Germany. Audit quality in Germany should be uniformly high, because of strong reputational needs, strict controls on operating procedures, and quality enforcement mechanisms. An audit partner’s style should not affect this quality level. However, our results do not support this expectation. Exploiting a unique dataset comprising the names of the audit engagement and review partners of listed German companies, we find that audit engagement partners in Germany have a significant influence on audit quality, beyond firm- and office-level factors. In contrast, audit review partners do not have a consistent significant influence on audit quality. We measure audit quality by the level of a firm’s abnormal accruals and its propensity to meet or beat an earnings target. We also find that the 2005 adoption of a new audit quality enforcement system that includes ‘naming and shaming’ does not reduce the influence of audit partner style on financial reporting quality

CSR decoupling within business groups and the risk of perceived greenwashing

Research Summary: Given the growing legitimacy of corporate social responsibility (CSR), many firms engage in symbolic communication to showcase CSR without undertaking commensurate substantive actions. This “CSR decoupling” can create a risk of perceived greenwashing, which, in turn, may negatively affect a firm's performance. In this study, we explore an unexamined antecedent of decoupling: interfirm affiliation. Specifically, we use the structure of Business Groups (BGs) to investigate CSR decoupling across rather than within firms. We find that apex firms within a group are more likely to engage in CSR decoupling compared with non‐apex firms and, importantly, are partially shielded from greenwashing perceptions by the market. Our research contributes to the literatures on decoupling, perceived greenwashing, and the role of BGs and their CSR practices. Managerial Summary: Companies that engage in symbolic communication about corporate social responsibility (CSR) without substantive actions risk being perceived as “greenwashers,” a perception that harms firm performance. Our study demonstrates how, in certain contexts where firms are affiliated with others, this may not occur. For instance, apex firms within Business Groups (BGs)—where firms are interconnected through equity and social relationships—can report on the CSR actions of non‐apex affiliates without providing commensurate substantive actions of their own. Importantly, the control and coordination abilities of these apex firms protect them from greenwashing perceptions. This study, therefore, demonstrates the role of BGs in shaping CSR practices and provides insights for managers to understand the potential risks and benefits of affiliations within BGs

Essays on Regulatory Determinants of European Banks’ Reporting Quality

Le thème central de ma thèse de doctorat est le Règlement sous de multiples formes. Plus précisément, je me concentre sur les paramètres affectés par obligatoire, facultatif ou en auto-développés le règlement. Les trois chapitres de l'actuel document utilisent comme paramètre l'industrie bancaire dans les pays de l'Union européenne (UE). Au cours de la dernière décennie, le secteur bancaire a subi plusieurs transformations de réglementation qui ont influé sur la quantité et la qualité de l'information divulguée. En outre, la récente crise financière avait les banques dans le projecteur, compte tenu de leur rôle central dans la chute des marchés.Dans le premier chapitre, "Ne Bâle II affectent le marché Évaluation des provisions pour pertes sur prêts discrétionnaires?", j'étudie l'impact de l'Accord de capitaux lI de Bâle 2008 mise en oeuvre dans l'Union européenne. Bâle II était destiné à mettre un niveau accru de transparence concernant les opérations des banques. Par conséquent, Bâle II introduit une incitation pour les banques à (1) accroître leur approvisionnement prospectives et (2) de réduire leur approvisionnement opportunistes.Dans notre établissement, Bâle II introduit des mesures d'incitation pour les gestionnaires de reconnaître moins de revenu discrétionnaire croissant des provisions pour pertes sur prêts (DLLPs). Le revenu-DLLPs croissante sont importants puisqu'ils sont reconnus dans la littérature comme surtout opportuniste. Ces conclusions sont d'une importance particulière compte tenu de l'évolution réglementaire récentes et à venir dans le secteur bancaire. Je veux parler de l'introduction des IFRS 9 en 2018 et celui de Bâle III en 2019. Nos résultats soulignent la nécessité pour la comptabilité et les autorités de réglementation bancaire de coordonner leurs efforts avec mépris à leur façon innée des objectifs différents.Pour ma deuxième chapitre, "A Bâle II induit le conservatisme a réduit le niveau de la gestion des revenus des banques de l'UE?" Bâle II réduit le pouvoir discrétionnaire des provisions qui est utilisé dans la période de pré-adoption de rapports opportunistes (à reconnaître les recettes croissantes pour atteindre les gains gestion DLLPs objectifs).Le troisième chapitre, " l'impact de la Banque de l'UE 2010 Test de stress La divulgation des résultats sur les banques " gains " gestion analyse l'impact que la divulgation de la Prospective 2010 Test de stress macroéconomique (ST) a sur le niveau des banques participantes opportuniste reporting. Plus précisément, il teste si la divulgation diminue et par conséquent l'opacité de la banque gains (établie de façon approximative par gestion et régularisation du revenu de référence pour le battre) testé les banques par rapport aux non-banques testées.Nous constatons que les banques qui entrent dans l'ère de réduire le niveau de leurs coups de référence. Dans la corroboration avec les résultats précédents, nous documentons que la divulgation de la ST réduit probablement les résultats de l'opacité des banques et gestionnaires de réduire les rapports opportunistes en raison du renforcement l'examen public. Ce document est le premier d'analyser l'impact que la divulgation de la ST Résultats a sur le niveau des gains des banques des pratiques de gestion et qu'elle ajoute à la littérature ST émergents.Dans l'ensemble, ma thèse jette de la lumière sur les questions actuelles et pertinentes qui concernent l'un des plus minutieusement examiné et critiqué les industries dans le monde. En analysant l'effet de différents ensembles de règlements sur les rapports financiers et sur l'évaluation des nombres de comptabilité, cette thèse apporte de nombreuses contributions à la littérature académique et jette de la lumière sur les effets pratiques de chevauchement des règlements dans l'UE.The central theme of my PhD thesis is regulation under multiple forms. Specifically, I focus on settings impacted by mandatory, optional or self-developed regulation. All three chapters in the current document use as setting the banking industry in countries from the European Union (EU). In the last decade, the banking industry has faced several regulatory transformations that impacted the quantity and quality of the disclosed information. Moreover, the recent financial crisis had banks in the spotlight, given their central role in the fall of the markets.In the first chapter, "Does Basel II affect the Market Valuation of Discretionary Loan Loss Provisions?", I study the impact of the 2008 Basel lI Capital Accord implementation in the European Union. Basel II was intended to bring an enhanced level of transparency regarding banks' operations. Consequently, Basel II introduces an incentive for banks to (1) increase their forward-looking provisioning and (2) to reduce their opportunistic provisioning.In our setting, Basel II introduces incentives for managers to recognize less income-increasing discretionary loan loss provisions (DLLPs). The income-increasing DLLPs are important as they are recognized in the literature as especially opportunistic. These findings are of particular importance given the recent and forthcoming regulatory developments in the banking industry. I refer to the introduction of IFRS 9 in 2018 and that of Basel III in 2019. Our results highlight the need for accounting and banking regulators to coordinate their efforts with disregard to their innately different objectives.For my second chapter, "Has Basel II Induced Conservatism Reduced the Level of EU Banks' Earnings Management?" Basel II reduces discretion in provisioning that is used in the pre-adoption period for opportunistic reporting (to recognize income-increasing DLLPs for reaching earnings management objectives).The third chapter, "The Impact of the 2010 EU Bank Stress-test Results Disclosure on Banks' Earnings Management" analyzes the impact that the disclosure of the forward-looking 2010 macroeconomic stress-test (ST) has on the level of participating banks’ opportunistic reporting. Specifically, it tests if the disclosure reduces bank opacity and consequently earnings management (proxied by income smoothing and benchmark beating) for the tested banks relative to non-tested banks.We find that the banks which enter the ST reduce the level of their benchmark beating. In corroboration with the previous results, we document that the disclosure of the ST's results likely reduces banks' opacity and managers reduce the opportunistic reporting due to enhanced public scrutiny. This paper is the first to analyze the impact that the disclosure of the ST results has on the level of banks' earnings management practices and it adds to the emerging ST literature.Overall, my thesis sheds light on current and relevant issues that concern one of the most scrutinized and criticised industries in the world. By analyzing the effect of different sets of regulations on financial reporting and on the valuation of accounting numbers, this thesis brings numerous contributions to the academic literature and sheds light over the practical effects of overlapping regulations in the EU

Research: How Some Companies Avoid Accusations of Greenwashing

Recent research reveals a troubling trend: apex firms in Business Groups often promote sustainability without substantial action. Analyzing data from 515 companies in 35 countries, the authors found that apex firms, especially those sharing a brand with affiliates, engaged less in sustainability initiatives than their lower-tier counterparts. This potential “greenwashing” might be tolerated due to the unique BG structure, where apex firms play communicators and affiliates act as implementers. Despite market tolerance, such discrepancies could harm long-term reputations. For genuine sustainability, firms must ensure accurate communication, inspire affiliates with shared values, diffuse best practices groupwide, and stay attuned to evolving stakeholder expectations. Sustainability is not just a symbolic gesture but a commitment requiring consistent, substantive actio

Research: How Some Companies Avoid Accusations of Greenwashing

Recent research reveals a troubling trend: apex firms in Business Groups often promote sustainability without substantial action. Analyzing data from 515 companies in 35 countries, the authors found that apex firms, especially those sharing a brand with affiliates, engaged less in sustainability initiatives than their lower-tier counterparts. This potential “greenwashing” might be tolerated due to the unique BG structure, where apex firms play communicators and affiliates act as implementers. Despite market tolerance, such discrepancies could harm long-term reputations. For genuine sustainability, firms must ensure accurate communication, inspire affiliates with shared values, diffuse best practices groupwide, and stay attuned to evolving stakeholder expectations. Sustainability is not just a symbolic gesture but a commitment requiring consistent, substantive actio