The Share Price and Investment: Current Footprints for Future Oil and Gas Industry Performance

Share price model used to predict shareholders behavio

THE VALUE RELEVANCE OF FINANCIAL REPORTING IN ROMANIA

This study examines empirically whether investors in the Romanian stock market perceive accounting information based on domestic GAAP to be value relevant. The study is motivated by the value-relevance literature in the emerging stock markets in which Romania is also included. Using a sample of all productive listed companies in the Bucharest Stock Exchange from 2005 to 2008 with available data, we obtain evidence of value relevance of accounting information in Romania based on the return and price models. The results of this study are the following: accounting information is value relevant to investors in the emerging stock markets despite the young age of the market; the improvement of the accounting rules leads to increase the relevance of accounting information; the value relevance of accounting information is greater for the companies which: has positive earnings, are large, recorded a decrease of turnover; and/or are high indebted

The Reporting and Sustainable Business Marketing

Companies have to communicate to be noticed on the market, to promote their services and products, and to give assurances that they are a credible partner in the relationship with stakeholders. In this article, starting from the importance of marketing communication in business, an index of sustainability communication was created. Then, based on the relevance of accounting information model, we study the relationship between the index of sustainability communication and the share price, basically its influence on the future performance of the company. The regression analysis emphasizes the positive influence of the index of sustainability communication on the share pric

MEASURING THE COMPANY’S REAL PERFORMANCE BY PHYSICAL CAPITAL MAINTENANCE

The measurement of profit depends on the concepts of capital maintenance used by the company in preparing its financial statements. The IASB Framework offers the option of choosing between two concepts of capital maintenance: financial capital and physical capital. This study highlights the adverse consequences of financial capital maintenance and supports for the recognition of profits by maintaining the physical capital. In this study we proposed a theoretical model to calculate the real profit by maintaining the physical capital. The model is applied for all Romanian production companies listed with available data by the restatement of information disclosed in the financial statements. The results demonstrate that the model based on physical capital maintenance captures the company’s real performance. This model could be an alternative to the model based on financial capital maintenance which operates nowadays on the financial markets