Iulian Viorel Brasoveanu

The Interaction Between Financial Audit and Corporate Governance: Evidence from Romania☆

Abstract In order to conduct a quality financial audit both information about financial indicators and about the corporate governance that a company has are mandatory. This study presents the correlation between financial audit and corporate governance of the entities that are listed on the Bucharest Stock of Exchange that had to comply with IFRS approach. Using a simultaneous equation model, positive influence is detected between financial audit, proxy by audit fees, and the type of auditor and negative effect is found between the existence of audit committee, the non- existence of CEO/chair duality and the one tier management system.

The Impact of IFRS Adoption in Romania upon the Earnings Management of the Bucharest Stock Exchange Entities

Abstract The adoption of IFRS in Romania affects the performance of the companies which are going to apply them for the first time. While the listed companies have mandatory adopted the International Financial Reporting Standards (IFRS) for consolidated financial statements, the individual financial statements are compulsory to be reported under IFRS only from 2012. A comparison between Romanian Accounting Standards (RAS) and IFRS, in terms of earnings management metrics, was realized upon the entities that are listed on the Bucharest Stock of Exchange (BSE). Significant improvements were observed in the year of adoption when variability of earning management regarding the variability of net income, the variability of cash flows, the correlation between accruals and cash flow and the value toward positive earnings metrics were analyzed.

Similarities between the Acquirer and the Target Company in Successful Takeover Bid Offers

Abstract In order to narrow the high competition between firms that operates in the same industry, mergers and acquisitions (M&As) transactions are frequently encountered in Romania. In many M&As can be found some similarities between the acquirer and the target company. The study analyze how a successful takeover bid offer is influenced by similarities regarding the age, the geographical position, the industry or ownership between the acquirer and the target company. The results point out that some variables have an important influence on the successful takeover bid, while others are not significant in the acquirers point of view.

Measuring the Performance of Romanian Listed Companies Considering their Individual Characteristics

Abstract The aim of this paper is to provide evidence about the financial performance that the companies that are listed on a regular market obtained. The financial performance can be influenced by individual characteristic of the entity, like: size, indebtedness ratio, and liquidity ratio, type of the auditor, the industry where they act or other particular features. The research was conducted upon the Bucharest Stock Exchange (BSE). It took into consideration the entities that have to report their individual financial statements under International Financial Reporting Standards (IFRS). This regulation is compulsory for entities that are admitted for listing on a regular market from 2012. The study provides proper evidence about the factors that influence the entities’ performance. Both quantitative and qualitative measures were taken into consideration. The qualitative elements were quantified using dummy variables (the development region, the type of auditor, the specialization field, the case in which major shareholder has more than 50% of the shares). The results emphasize the important of several variables (i.e. the companys size, the region where the entity acts, the companys indebtedness ratio, and the companys age) that have significantly influenced, both in a positive and a negative way, the financial performance. Considering the area in which the company is specialized, no reliable information was detected. It seems that neither return on equity, neither return on assets, neither cash flow from operation divided by total assets are reliable financial measure though which the influence of specialization can be properly reflected. Considering geographical regions, companies from nord - west region and from the west region do obtained a lower financial performance that that that its obtained if the company act in other development region.