Volume 55 / 2022



State Budget Deficit During Crises: Constraints and Balancing Policy

Marius Surugiu, Valentina Vasile, Raluca Mazilescu, Camelia Surugiu

Abstract: The balance between state budget revenue and expenditures represents a challenge for any government, especially in times of crisis. Economic theory has defined different behaviors for managing the budget balance. However, a crisis highlights the constraints and limitations between expectations, the yield of budget receipts, and the efficiency of public budget expenditures. This paper analyzes the relationship between the Romanian state budget revenue and expenditures for 2000-2021. Furthermore, the effects of crises (the financial and the health crises) on revenue, expenditures, and the state budget deficit, are highlighted. The results show statistically significant relationships between variables


Foreign Trade as Main Factor to Support Economic Resilience and Sustainable Development. Case Study for Romania

Elena Petre (Bănică), Valentina Vasile, Artur Emilian Simion

Abstract: The analysis of the evolution of foreign trade is important for any economy, for political decision-makers to outline the development strategy in the short, medium and long term. Aspects such as the degree of commercial openness, the relationship with partner countries on intra-EU and Extra-EU dimensions, main exported and imported products, the degree of technology are very important in economic analyses and for defining the resilience and sustainable development potential of the national economy. In this research, we analyzed Romania's international trade relations in the post-accession period, with the main objective of identifying the main features, trends and structural changes of Romanian foreign trade, considering its potential for sustainable development of the national economy in the globalization context, but also the costs and efforts they entail for building resilience. The aim is to emphasize the foreign trade pattern during the last two biggest global crises, the economic crisis in 2008-2009 and the pandemic crisis in 2020-2022, as well as the structural changes and competitiveness of the foreign trade. The results show that foreign trade remains among the most important factors supporting robust recovery after a crisis.


Audit modifications in emerging markets: The Macedonian Stock Exchange

Dusica Stevcevska Srbinoska

Abstract: As a vital external governance mechanism, the audit report transmits important information about the entityb s performance and reporting quality. Benefiting from a novel dataset, this study is the first paper to evaluate audit report modifications in North Macedoniab s emerging economy.Using a sample of 99 nonfinancial listed entities for 2014b 2017, we detect that profitability, leverage and report timeliness are significantly associated with audit modifications. Opinions depict a deteriorating trend, whereby qualifications are principally attributable to disagreements with auditee management.Regulators could further focus on the precision in defining audit materiality, especially in reports with multiple qualifications yet lacking negative opinion.


Assessing methods for the quality of financial and accounting information

Dinu Loredana

Abstract: Accounting is a logical knowledge tool based on a system of rules that thinking must follow in order to achieve goals. This objective generally takes into account the construction of the true image of reality, using the accounting principles that influence the quality of accounting information. This study highlights the assessing methods for the quality of accounting information. The analysis shows that there are certain methods that are used to measure and assess the quality and usefulness of accounting information to determine the extent to which the financial statements match each of the qualitative characteristics.


The Effect of Information and Communication Technology on Business Performance

Fulgence Dominick Waryoba

Abstract: Information and communication technology (ICT) utilization has proved to be influential in business performance among small and medium enterprises (SMEs). Many studies have analyzed the effect of ICT on business performance at a firm level. The current study, however, analyzes the effect of ICT utilization on business performance using national average data. The main objective of this study was to analyze the effect of ICTs utilization on business performance and how business performance as a latent variable can be measured by logistic performance indices. The study used structural equation modeling to analyze the influence of logistic performance indices on the business performance measurement model. All post-estimation tests show that the current studyb s model is the best fit. The results show that logistics performance indicators are good measurements of business performance. Nevertheless, the use of ICTs significantly improves business performance among countries. Policymakers should focus their attention in influencing the adoption of ICTs for sustainable competitiveness. Future studies, however, should concentrate on how best the ICT variables can be grouped to make a confirmatory factor analysis.


The impact of entrepreneurship on economic development in Romania

Getuta David-Rosoga, Andreea Constantinescu

Abstract: Entrepreneurship represents an important driver of economic growth and development. The current study considers an analysis of the impact on GDP brought by indicators such as gross fixed capital formation, school dropout rate, unemployment rate and number of the new enterprises. The analysis uses panel regression as well as the OLS method. The results indicate a negative impact of entrepreneurship (measured with the number of new enterprises) on economic development.


Optimal Fiscal and Monetary Policy Under Uncertainty in Nigeria: A Markov-Switching Dynamic Approach

Rufus Adebayo Ajisafe, Kazeem Fasoye, Musbau Olaniyan Fatai, Folorunsho M. Ajide

Abstract: The effectiveness of the conduct of fiscal and monetary policy under uncertainty in Nigeria between 1980 and 2020 was examined using a Markov-switching dynamic regression model to b estimate the uncertainty as portrayed by monetarists/ neo-Keynesians. The results reveal an ineffective conduct of fiscal and monetary policy under uncertainty in Nigeria as it is shown that the uncertainty about the impact of fiscal and monetary policy in the future surpasses the existing uncertainty as indicated by the higher probability values. b The study recommends a dominance of monetary policy rather than fiscal policy if the policy thrust of the government is to reduce policy uncertainty in the economy both at current and future periods.


Board Attributes and Environmental Disclosure Practices Among Quoted Manufacturing Companies in Nigeria

Johnson Kolawole Olowookere, Jayeola Olabisi, Gabriel Monday, Oijiangbe Titilope Esther Olorede

Abstract: This study investigated board attributes and environmental disclosure practices among listed pharmaceutical and cement companies in Nigeria. The population of the study consisted of thirteen (13) Nigerian listed companies out of which ten (seven pharmaceutical and three cement Companies) companies were purposely selected based on the availability of data. The study covered a period of ten years (2012 to 2021) and employed Random Fixed Effect Regression for analysis. The results of the study showed that board independence and board gender diversity have a positive and significant relationship with environmental disclosure practices. However, board meetings had a negative and significant impact on environmental disclosure, while board size had a positive but insignificant influence on environmental disclosure. The study concluded that board attributes contributed to environmental disclosure practices of Nigerian listed pharmaceutical and cement companies in Nigeria. Therefore, the study suggested that every company should ensure the inclusion of appropriate board attributes to encourage voluntary environmental disclosure practices among Nigerian listed pharmaceutical and cement companies.


Green Human Resource Management: A Bibliometric Analysis

Anuradha Iddagoda, Hiranya Dissanyake, Rohita Abeysinghe

Abstract: Green Human Resource Management has become a buzzword in management circles. The reason is that the whole world is moving toward green initiatives. This study explored the literature on Green Human Resource Management using bibliometric analysis. Identified research objectives are to identify the main topics and present dynamics in the arena of Green Human Resources; to make recommendations for future research direction. In total, 471 publications published between 2008 and 2022 related to Green Human Resource Management were identified in the SCOPUS database. The literature is analyzed quantitatively using Biblioshiny software and analyzed highly cited papers qualitatively. Accordingly, this study found that Green Human Resource Management should be further explored using different techniques, countries and methods.This study explores 14 years of literature and suggestions for further research implications.


Board Components of Corporate Governance and Financial Index of Deposit Money Banks in Nigeria

Omole Ilesanmi Isaac, Adewumi Ayodeji, Edokpayi Sunday Adesuwa

Abstract: This study examined the impact of board components of corporate governance on the financial index of money deposit banks in Nigeria using econometric regression models. Financial index is used to track the performance of Nigerian banks over 10 years using Tobinb s Q as a measurement proxy. The sample comprised thirteen money deposit banks that are listed on the Nigeria stock exchange market over the period between 2011 and 2020. The Panel Fixed Effect results showed that the p-value of the t-statistics calculated for board size was 0.0000, which is less than the critical value of 5%. This implied that board size has significant influence on the financial index of the selected banks and the p-value of the F-statistics computed for the variables for testing the overall fixed effect of the regression model of 0.000000 was less than the critical value of 5%. This suggested that there was a significant relationship between the financial index and board of directorsb index of the deposit money banks in Nigeria. Board independence and the proportion of foreign directors in the total number of directors (as characteristics of corporate board composition) have a significant strong positive impact on firm performance (both contemporaneous and subsequent). The study therefore recommends that banks should have an adequate board that includes both executive and non-executive directors and to exercise caution in populating the board because it will be difficult for the stakeholders to control the board when it is too large.