Ioan-Bogdan Robu

The relationship between life expectancy at birth and health expenditures estimated by a cross-country and time-series analysis

In the last years, most countries experienced improved health outcomes as longevity increased steadily and infant mortality rate decreased, along with a growth of the health expenditures. The paper aims to analyze the relationship between the dynamics of the inputs and the outputs of health care systems. The input of the health care system is expressed by health care expenditures per capita (current US

The Fraud Auditing:Empirical Study Concerning theIdentification of the FinancialDimensions of Fraud

) and the output of the health care systems is expressed by life expectancy at birth (years). The data are collected for 175 world countries, grouped according to the geographic position and income level, over 16 years (1995-2010). We apply a panel data analysis to estimate life expectancy by a function of health expenditures. The obtained results show a significant relationship between health expenditures and life expectancy. Country effects are significant and show the existence of important differences among the countries.

A Circular Causality Analysis on the Determinants of the Audit Fees within the NYSE-Quoted Companies

The last two decades, marked by financial instability, economic crises, the bankruptcy of worldwide renowned companies, stock exchange speculations, financial scandals and lack of trust in capital markets, have lead to an economic downfall and have brought back into light the analysis of the responsible factors. Of these, financial fraud is a significant element regarded as a disastrous phenomenon difficult to pin under safe touchlines. Therefore, the identification of the determining factors of fraud is nowadays an important desideratum at an international level for the prevention and elimination of these events beyond the psychological approaches. This study aims to identify the main financial components of fraud in order to obtain score classification functions, as well as to determine the probability of occurrence of the risk of fraud starting from a series of consecrated economical-financial indicators by using advanced statistical methods of data analysis. The research objectives and the validation of the work hypotheses have been achieved based on the study of 65 frauded and unfrauded companies, quoted on the main financial markets in the world. In order to obtain the research results, the data have been processed with SPSS 19.0.

The Evaluation of the Investment Opportunity by Analyzing the Financial Structure Influence on Company Value

According to the International Standards on Auditing, audit fees are the amount that remunerates the financial auditor’s activity, the certification of financial statements. The Profession Code states that these fees should be calculated in an objective way and the auditor’s independence shouldn’t be influenced by them. This study aims to identify the determinants of the audit fees, by testing the existence of a circular causality in the connection between audit fees and the financial performance of a NYSE-quoted company. The analysis is based on a sample of the first 100 companies (NYSE quoted) of the Top 500 Fortune, except for the companies in the investment funds and insurances field. In the study there were tested and validated the following working hypothesis: “the level of the audit fees is mainly influenced by the company’s capacity to continue its activity”, “the prestige of the audited company contributes to the decrease of the audit fees” and “the reduced fees level, paid by the customer audited by one of the Big4 companies in this exercise, contributes to the future prestige increase”. For data analysis there were used linear regression analysis (simple and multiple) and the variance analysis (ANOVA). Research results indicate the existence of a circular causality, bidirectional, on the level of the relationship between audit fees and financial performance. For data processing, in the study there were used statistical software SPSS 19.0 and AMOS 16.0.

Empirical Study on the Assessment of the Auditor's Responsibility Regarding the Risk of Financial Fraud

Triggered by the need to make decisions concerning the purchase or investment in new economic entities, with correct and detailed information on their status and economic development conditions, the due diligence process identifies ever better its role and meaning. Knowing the impact generated by the financing strategy on organizational values, as well as the factors that play a role in the process of evaluating the financial structure are essential elements that contribute to the success of such an approach. Based on a sample made up of 60 companies quoted in the Bucharest Stock exchange, this study aims to draw a series of mathematical models that could be used as instruments for the identification and quantification of the influences generated by the financial structure on the companies’ value. At the same time, this study attempts to identify the internal factors, specific to the company, that determine the composition of the financial structure, as well as the sense and intensity of their actions upon financial leverage. This paper introduces in the analysis the influence of specific activity to the indebtedness, reflecting the need for assessing the adequacy of financing strategies based on the activity filed of the enterprises. To obtain the research results, methods of data analysis were used such as: ratios technique, multiple linear regression analysis and linear regression analysis with alternative independent variables, ANCOVA type. Data processing was performed using SPSS 19.00 and AMOS statistical software.

Empirical Study on the Efficiency of the Companies Financing Process through Statistical Analysis

The recent famous financial frauds have demonstrated that in many cases the auditor was either responsible for or an accomplice in their manifestation. Thus, the auditor plays an important role in ensuring a true and fair view regarding the financial position and performance of the company. International standards on auditing indicate that the financial auditor’s main objective is to serve the stakeholders’ interests by expressing an independent, objective and competent opinion regarding the accuracy of information from financial statements. Also, according to audit standards, the auditor has the responsibility to assess fraud risk and how it could influence his opinion. The purpose of this study is to test if there is a connection between the affiliation of the client-company to an auditor who is member of Big4 and the incidence of financial fraud. The research results indicate the existence of a company profile that is defrauded or not defrauded. Starting from a series of factors associated to the financial auditor, a deterministic model was proposed in the study for estimating the probability of being defrauded. For the validation of the working hypotheses, a sample consisting of 200 defrauded and not defrauded companies was selected, quoted on New York Stock Exchange. Research results were obtained by processing the data with SPSS 19.0.

THE VALUE RELEVANCE OF FINANCIAL INFORMATION UNDER THE INFLUENCE OF COUNTRY RISKS. THE CASE OF THE INDIAN LISTED COMPANIES

The current economic context, characterized by strong slippages, at the real and financial flows, request, in order to maintain stability and favorable evolution of the enterprise, a fair and efficient substantiation of the decision process. Such need is found, especially, in the area of corporate finance. In this respect, managers must be given tools used in assessing the adequacy of existing financial structure construction and to indicate future directions of action regarding release of funds demand. This article addresses this area by focusing on two coordinates: the study of links that are established between the characteristics of entities (capital structure ratios, activity field) and the development of the dimension of corporate value, expressed by increase / decrease index of asset capitalization, obtaining in this way a profile of the enterprises related to the efficiency of the financing policy, and develop a mathematical model to classify firms in performance group, using the as the same efficiency criterion in choosing the financing sources. Data considered in the study are taken from financial statements of listed companies to Bucharest Stock Exchange, considering a sample of 80 units that constitute the working group. To achieve the research objectives were used as working methods: ratios technique, multiple correspondence factorial analysis, principal component analysis and discriminant analysis. Data processing was performed using the statistical software SPSS 19.00.

The Value Relevance of Audit Report Under IFRS in the Case of Romanian Listed Companies

Abstract In the decision-making process investors need quality financial information based on reported accounting numbers. Such numbers are present in financial statements and must meet a series of fundamental characteristics, such as relevance and faithful representation. The present paper aims to analyse and assess the value relevance of financial information on the financial market in India under the influence of the main country risk components (i.e. economic risk and freedom to set up businesses, corruption control, financial, fiscal, monetary and investment freedom). The research was carried out on a sample of companies listed on the regulated market in India between 2006 and 2014. The results of applying general linear models have shown that, over time, the country risk can have a significant influence on the value relevance of the financial statements reported at the financial market level.

Statistical Estimation of the Information Influence Regarding Employees on the Romanian Firms Market Capitalization

On a financial market, investors need relevant and fair information on which to base their decisions. Investors seek instruments to assess the information quality which can indicate the stock that can reward them with high performance. To answer the investors’ problem, financial statements must be audited, receiving an opinion related to the quality of reported financial information. With the adoption of IFRS, can the audit report contain a professional, objective and independent opinion on the true and fair view of the financial statements, in the most significant aspects, related to the information that reflects financial position and performance, in accordance with an applicable accounting framework? The purpose of this study is to analyze, with the adoption of IFRS, if the auditors’ affiliation to the Big 4 and the audit opinion are value relevant for investors and have a significant impact on the stock price. To achieve the research objectives, a sample of 59 companies listed on Bucharest Stock Exchange (BSE) was selected. These companies use IFRS in financial reporting. To obtain the research results, multiple regression analysis, ANCOVA models and GLM were used. Data was collected from the financial statements of companies and from other reports provided by BSE. For data processing, SPSS 20.0 was used. The results achieved from the ANCOVA and GLM regression analysis indicate that information provided by the audit report, auditors’ affiliation to the Big 4 and the audit opinion, are value relevant for investors and have a significant impact on the stock price.

Empirical Study on the Analysis of the Global Financial Crisis Influence on the Accounting Information Reported by Romanian Listed Companies

Abstract Romanian listed companies report information regarding the efficiency of the labor force usage and the availability of working equipment. Such information can be useful to investors, with impact on the investment decision and on the market capitalization. The study proposes to analyze the influence of the information regarding the employees on the market capitalization of companies by using the generalized linear model. The observed sample consists of 70 Romanian listed companies between 2006 and 2011. The obtained results indicate a significant influence of the companies’ reported information regarding the employees and their results on the market capitalization