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TABLE OF CONTENTS

CONSIDERATIONS REGARDING THE PATRIMONIAL INVENTORY IN THE

SPIRIT OF EUROPEAN ACCONTING REGULATIONS ................................................... 13

AVRAM VERONEL ...................................................................................................................................................... 13 ŢOGOE GRETI DANIELA ............................................................................................................................................... 13

FINANCIAL PERFORMANCE INDICATORS FOR EVALUATION OF LISTED

COMPANIES .............................................................................................................................. 18

BALTEŞ NICOLAE ........................................................................................................................................................ 18 CIUHUREANU ALINA TEODORA ................................................................................................................................... 18

THE FINANCIAL IMPLICATIONS OF IMPLEMENTING THE NATIONAL REFORM

PROGRAM IN ROMANIA ....................................................................................................... 26

BALTEŞ NICOLAE ........................................................................................................................................................ 26 ISPAS ROXANA ........................................................................................................................................................... 26

RETAIL BANKING TRANZACTION INNOVATION ......................................................... 31

BANACU CRISTIAN ..................................................................................................................................................... 31 GRUDNICKI BOGDAN ................................................................................................................................................. 31

OPTIMAL FISCAL SYSTEM AND PUBLIC FINANCE SUSTAINABILITY

INDICATORS IN EAST EUROPEAN COUNTRIES WITHIN THE EU27 ....................... 36

BANU ILIE ................................................................................................................................................................. 36 BUTIUC IOANA-MĂDĂLINA .......................................................................................................................................... 36

FINANCIAL PERFORMANCE OF BANKS ANALYSIS ..................................................... 45

BǍTRÂNCEA IOAN..................................................................................................................................................... 45 BǍTRÂNCEA MARIA .................................................................................................................................................. 45 MOSCVICIOV ANDREI ................................................................................................................................................ 45

THE CONNECTION BETWEEN THE LUMP-SUM TAX AND THE SMES’

TURNOVER IN ROMANIA...................................................................................................... 51

BECA MARUŞA .......................................................................................................................................................... 51 ŞERBAN ELENA CLAUDIA ............................................................................................................................................. 51

THE RATING SYSTEM LICOS BUDGETARY INSTITUTIONS ...................................... 59

BECHIŞ LIVIU ............................................................................................................................................................. 59

THE PRESENT SITUATION OF THE ABSORPTION OF THE STRUCTURAL AND

COHESION FUNDS IN ROMANIA: THE CONSEQUENCES OF INTERRUPTION OF

PAYMENTS THROUGH SECTORAL OPERATIONAL PROGRAM HUMAN

RESOURCE DEVELOPMENT ................................................................................................ 62

BERICA CORINA ......................................................................................................................................................... 62 COCRIŞ VASILE .......................................................................................................................................................... 62

TESTING EFFICIENCY OF AN EMERGING CAPITAL MARKET: EVIDENCE FROM

BRATISLAVA STOCK EXCHANGE...................................................................................... 70

BIRĂU FELICIA RAMONA .............................................................................................................................................. 70

THE BUDGET OF THE PUBLIC INSTITUTION – A PROGRAMMING AND

EXECUTION INSTRUMENT FOR INCOMES AND EXPENSES ...................................... 76

BOBEŞ FLORINA-MARIA .............................................................................................................................................. 76

4

THE IMPLEMENTATION OF RISK MANAGEMENT SYSTEMS IN ROMANIAN

PUBLIC INSTITUTIONS .......................................................................................................... 81

BOGHEAN FLORIN ..................................................................................................................................................... 81 HLACIUC ELENA ........................................................................................................................................................ 81 BOGHEAN CARMEN ................................................................................................................................................... 81

ACCOUNTING AND AUDIT IN TIMES OF CRISIS ........................................................... 88

BOIA MĂDĂLINA-IOANA .............................................................................................................................................. 88

A FAN CHART FOR INFLATION RATE FORECASTS IN ROMANIA ........................... 94

BRATU MIHAELA ....................................................................................................................................................... 94

CRISIS AND FINANCIAL REGULATION .......................................................................... 104

BRATU RENATE DOINA .............................................................................................................................................. 104 ŢĂRAN – MOROŞAN ADRIAN .................................................................................................................................. 104

WHICH ARE THE FUTURE REVENUES OF THE EUROPEAN UNION SINCE 2014?

..................................................................................................................................................... 110

BUNESCU LILIANA ................................................................................................................................................... 110 COMANICIU CARMEN .............................................................................................................................................. 110

APPLICATION OF THE PRINCIPAL COMPONENTS ANALYSIS TECHNIQUE ON

ROMANIAN INSURANCE MARKET .................................................................................. 122

BURCĂ ANA-MARIA ................................................................................................................................................. 122 ARMEANU DAN ...................................................................................................................................................... 122

IMPLICATIONS OF TAX BURDEN BORN BY THE FOREST ENTITY ON

ADMINISTRATIVE RESOURCES ....................................................................................... 130

CĂLEAN IOANA ........................................................................................................................................................ 130 GATEA MARIA ......................................................................................................................................................... 130

A SURVEY OF THE STRUCTURAL APPROACH IN CREDIT RISK MODELLING . 135

CĂLIN ADRIAN CANTEMIR .......................................................................................................................................... 135 POPOVICI OANA CRISTINA ........................................................................................................................................ 135

EFFECTS OF CENTRALIZATION IN THE POST-TRADING INFRASTRUCTURE OF

OTC DERIVATIVES ............................................................................................................... 144

CALISTRU ROXANA ANGELA ...................................................................................................................................... 144

FROM FISCAL SOVEREIGNTY TO A GOOD FISCAL GOVERNANCE IN THE

EUROPEAN UNION ................................................................................................................ 153

CHILAREZ DĂNUŢ .................................................................................................................................................... 153 ENE GEORGE SEBASTIAN ............................................................................................................................................ 153

FIABILITY OF PIVOT POINT INDICATOR ...................................................................... 163

CIUDIN ADRIAN ....................................................................................................................................................... 163 VASIU DIANA .......................................................................................................................................................... 163

THE BALANCE SHEET – INFORMATION SYSTEM IN THE FINANCIAL

DIAGNOSIS .............................................................................................................................. 169

CIUHUREANU ALINA TEODORA ................................................................................................................................. 169

SEVERAL COORDINATES REGARDING CIVISM TAXATION ................................... 178

COMANICIU CARMEN .............................................................................................................................................. 178 BUNESCU LILIANA ................................................................................................................................................... 178

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INTERNAL AND EXTERNAL AUDITORS AS A TEAM-WORK ................................... 184

CONSTANTIN NICOLAE VASILE .................................................................................................................................. 184 SUSMANSCHI GEORGIANA ....................................................................................................................................... 184

APPLICATIONS OF THE WAITING LINES THEORY IN FINANCING THE HEALTH

INSURANCE SYSTEMS ......................................................................................................... 190

CONSTANTINESCU DAN ......................................................................................................................................... 190 ALEXANDRU CIPRIAN ANTONIADE ............................................................................................................................. 190

THE BITCOIN ECONOMY, AN ANTI - CRISIS REMEDY? ........................................... 196

COZMEI CĂTĂLINA ................................................................................................................................................... 196 CALOIAN FLORENTIN ................................................................................................................................................ 196

QUALITY IN HIGHER EDUCATION: FROM WORDS TO REALITY ......................... 204

CREŢAN GEORGIANA CAMELIA ................................................................................................................................... 204 CÂMPEANU EMILIA MIOARA .................................................................................................................................... 204 CHIRILĂ VIORICA ..................................................................................................................................................... 204

TO WHAT EXTENT THE DIMENSION OF THE FACULTATIVE PENSIONS FUNDS

IS INFLUENCED BY THE PLACEMENTS OF THEIR ASSETS? STATISTICAL

STUDY IN ROMANIA ............................................................................................................. 213

CRISTEA MIRELA ..................................................................................................................................................... 213 MARCU NICU .......................................................................................................................................................... 213 SIMION MIRCEA LAURENŢIU ...................................................................................................................................... 213

THE LEASE AGREEMENT – A METHOD TO FINANCE THE PUBLIC SECTOR

INVESTMENTS ........................................................................................................................ 224

CRIVEANU MARIA ................................................................................................................................................... 224

STUDY ON LIQUIDITY IN ROMANIAN COMPANIES ................................................... 230

CSEGEDI SANDOR .................................................................................................................................................... 230 BǍTRÂNCEA IOAN................................................................................................................................................... 230 TODEA ANGELA ....................................................................................................................................................... 230

A STATISTICAL STUDY ON THE IT ROMANIAN COMPANIES PERFORMANCE 235

CSEGEDI SANDOR .................................................................................................................................................... 235 BǍTRÂNCEA LARISSA-MARGARETA ............................................................................................................................ 235 MOSCVICIOV ANDREI .............................................................................................................................................. 235

ABSENTEEISM AND THE IMPACT OF COST IN HOSPITALS .................................... 239

DĂUŞ GABRIELA LOREDANA ....................................................................................................................................... 239

THE VALUE OF R&D FISCAL TREATMENTS IN THE EUROPEAN UNION:

RECENT EXPERIENCES ....................................................................................................... 247

DIACONU MIHAELA ................................................................................................................................................. 247

SCIENCE AND ETHICS – PUBLIC USE OF ACCOUNTING EXPERTISE IN

CONTEXT OF THE FINANCIAL CRISIS ........................................................................... 256

DOBRE ELENA ......................................................................................................................................................... 256 PETRASCU DANIELA ................................................................................................................................................. 256

RESTORING THE INTERNATIONAL FINANCIAL AND MONETARY SYSTEM ..... 259

DOCIU MĂDĂLINA.................................................................................................................................................... 259 DUNARINTU ANCA ................................................................................................................................................. 259 ANDREICA ANGELA ................................................................................................................................................. 259

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CRISIS TRANSMISSION AND EFFECTS ON FINANCIAL SYSTEM. EVIDENCE

FROM ROMANIA .................................................................................................................... 264

DORNEAN ADINA .................................................................................................................................................... 264 FÎRŢESCU BOGDAN-NARCIS ....................................................................................................................................... 264

THE FINANCIAL RISKS OF THE ENTITY ....................................................................... 273

DUCU CORINA ......................................................................................................................................................... 273

SOVEREIGN CREDIT RATING AND STOCK MARKET CAPITALIZATION IN

CENTRAL AND EASTERN EUROPE, 1996 - 2010 ............................................................. 278

DUDIAN MONICA .................................................................................................................................................... 278 POPA RALUCA ANDREEA ............................................................................................................................................ 278

THE IMPORTANCE OF INVESTMENTS IN EARLY EDUCATION ............................. 286

DUMITRESCU ALEXANDRA ....................................................................................................................................... 286 CONSTANTINESCU ADRIAN ..................................................................................................................................... 286 TACHE ILEANA ......................................................................................................................................................... 286

VIEWS REGARDING THE ORGANIZATION OF THE ACTIVITIES RELATED TO

THE PREVENTION AND COMBAT AGAINST MONEY LAUNDERING .................... 292

DUMITRESCU SERJU ............................................................................................................................................... 292 AVRAM MARIOARA .................................................................................................................................................. 292

GLOBALIZATION OF FINANCIAL AND AUDITING SERVICES- FINANCIAL

IMPLICATIONS FOR ROMANIAN COMPANIES ............................................................ 299

DUŢESCU ADRIANA ................................................................................................................................................. 299 SAHLIAN DANIELA ................................................................................................................................................... 299

THE SIGNIFICANCE OF ETHICAL CONDUCT FOR THE ACCOUNTING

PROFESSION ........................................................................................................................... 309

DUŢESCU MIHAELA ................................................................................................................................................. 309

SUSTAINABLE DEVELOPMENT IN THE PRESENCE OF FOREIGN INVESTMENT.

OMV PETROM CRITICAL ANALYSIS .............................................................................. 313

ENE SEBASTIAN GEORGE ............................................................................................................................................ 313 IONECI MIHAELA ..................................................................................................................................................... 313 CHILAREZ DĂNUŢ .................................................................................................................................................... 313

INSURANCE SYSTEM AND EUROPEAN INSURANCE MARKET DURING CRISIS –

EVIDENCE FROM SOME POST-COMUNIST COUNTRIES .......................................... 323

FÎRŢESCU BOGDAN-NARCIS ....................................................................................................................................... 323

THE TESTING OF THE CONNECTION’S INTENSITY AND OF THE DEPENDENCE

SIGNIFICANCE BETWEEN THE ALLOCATIONS VALUE, THE SOLICITED VALUE

THROUGH THE SUBMITTED PROJECTS, THE VALUE OF THE APPROVED

PROJECTS, THE VALUES OF THE CONTRACTED ONES AND THE ABSORPTION

CAPACITY IN THE OPERATIONAL PROGRAMME ADMINISTRATIVE CAPACITY

DEVELOPMENT ...................................................................................................................... 333

FLORESCU DANIELA ................................................................................................................................................. 333

INCOME INEQUALITY IMPACT ON LIVING STANDARDS IN ROMANIA ............. 340

GANCIOV (MICULESCU) ANDRA .............................................................................................................................. 340 CISMAŞ LAURA ........................................................................................................................................................ 340

ECONOMIC CRISIS – UNDERSTANDING THE CAUSES TO ANALYSE POSSIBLE

SOLUTIONS.............................................................................................................................. 347

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GAVRILETEA MARIUS DAN ....................................................................................................................................... 347 MOGA AURA CARMEN .............................................................................................................................................. 347

THE IMPACT OF THE FINANCIAL STRUCTURE ON CORPORATE GOVERNANCE

..................................................................................................................................................... 354

GEORGESCU CRISTINA ELENA ................................................................................................................................... 354

THE INTENSITY OF LIBERALIZATION........................................................................... 362

GHERMAN MIRCEA-CRISTIAN ................................................................................................................................... 362 CIUPAC-ULICI MARIA-LENUŢA .................................................................................................................................. 362 COMAN ALEXANDRU ................................................................................................................................................ 362

HOW CONCENTRATED IS THE ROMANIAN BANKING SYSTEM OPPOSED TO

THE EUROPEAN UNION COUNTRIES AVERAGE? ....................................................... 369

GHIŢĂ-MITRESCU SILVIA ......................................................................................................................................... 369 DUHNEA CRISTINA ................................................................................................................................................... 369 VANCEA PAULA DIANE CORINA .................................................................................................................................. 369

ANALYSIS OF LOANS TO HOUSEHOLDS FOR HOUSE PURCHASE IN ROMANIA

..................................................................................................................................................... 374

GIBESCU OCTAVIA MARIA ......................................................................................................................................... 374

ASPECTS CONCERNING THE EXCISE DUTIES IN ROMANIA FOLLOWING THE

ACCESSION TO THE EUROPEAN UNION........................................................................ 381

HADA TEODOR ........................................................................................................................................................ 381 ANGHEL DANA CRISTINA ........................................................................................................................................... 381

ADVANTAGES AND OBSTACLES TO THE APPLICATION OF IFRS IN THE

REPUBLIC OF MOLDOVA ................................................................................................... 387

GRIGOROI LILIA ...................................................................................................................................................... 387 GHEDROVICI OLESEA .............................................................................................................................................. 387

THE IMPACT OF DIRECT FOREIGN INVESTMENTS ON THE ECONOMIC

PRODUCTIVITY GROWTH - CASE STUDY CENTRAL AND EASTERN EUROPE . 391

HALMI MIRELA ........................................................................................................................................................ 391 POPA DANIELA ........................................................................................................................................................ 391

HEDGING CURRENCY RISK IN EUROPEAN STOCK MARKETS: EVIDENCE FROM

THE CURRENT FINANCIAL CRISIS .................................................................................. 400

HOROBEŢ ALEXANDRA ............................................................................................................................................. 400 DRAGHICI ALINA ..................................................................................................................................................... 400 CONSTANTIN LAURA GABRIELA ................................................................................................................................. 400

HERITAGE, SHOULD BE SENT TO THE ACCOUNTING ANTIQUITIES MUSEUM?

..................................................................................................................................................... 411

ILINCUŢĂ LUCIAN – DOREL........................................................................................................................................ 411

DEVELOPMENTS IN THE BANKING INTEGRATION PROCESS: EVIDENCE FROM

THE NEW EU MEMBER STATES........................................................................................ 416

ILUŢ BOGDAN .......................................................................................................................................................... 416 POTLOG DORIAN ..................................................................................................................................................... 416

BUDGET REVENUES IN EU-27 ............................................................................................ 423

INCEU ADRIAN MIHAI ............................................................................................................................................... 423 ZAI PAUL ................................................................................................................................................................. 423

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INTERNAL AUDIT PROGRESS AND ITS ROLE ON CORPORATE GOVERNANCE

..................................................................................................................................................... 432

ION CLAUDIA ........................................................................................................................................................... 432 DURINA GEORGETA ................................................................................................................................................. 432 STANCIU JENI AURA ................................................................................................................................................. 432

IMPORTANCE OF THE MEASUREMENT OF THE LIQUIDITY RISK IN BANKING

MANAGEMENT ....................................................................................................................... 439

ION LUMINIŢA .......................................................................................................................................................... 439 ION ALEXANDRA ....................................................................................................................................................... 439

THE STYLIZED FACTS OF ASSET RETURNS AND THEIR IMPACT ON VALUE-AT-

RISK MODELS ......................................................................................................................... 447

IORGULESCU FILIP .................................................................................................................................................. 447

ENVIRONMENTAL AUDITING PROCESS – PART OF CORPORATE SOCIAL

RESPONSIBILITY REPORTING .......................................................................................... 456

IVAN OANA RALUCA ................................................................................................................................................. 456 PUŢAN ALINA .......................................................................................................................................................... 456

THE STRATEGIC ALIGNMENT BETWEEN KNOWLEDGE STRATEGY AND

INFORMATION SYSTEM STRATEGY IN THE BANKING SECTOR .......................... 466

JUCAN CORNEL NICOLAE ........................................................................................................................................... 466 DOLF BAIER MIHAELA SABINA ................................................................................................................................... 466

CURRENT CONSIDERATIONS ABOUT COST-BENEFIT ANALYSIS AND

ABSORPTION OF THE STRUCTURAL AND COHESION FUNDS USED FOR

INVESTMENT PROJECTS FROM ROMANIA .................................................................. 474

KAGITCI MERAL....................................................................................................................................................... 474 BUŞU CRISTIAN ........................................................................................................................................................ 474

EMU-INDUCED TAX MIXES CHANGES A MULTIDIMENSIONAL ANALYSIS OF

EURO AREA FISCAL STRUCTURES ................................................................................. 481

LAZĂR ISADORA ....................................................................................................................................................... 481

THE AMBIGUOUS CORRELATION BETWEEN FISCAL POLICY AND ELECTIONS

IN ROMANIA ........................................................................................................................... 488

LOBONŢ OANA-RAMONA ......................................................................................................................................... 488 KULOGLU AYHAN .................................................................................................................................................... 488

IS THE ROMANIAN BANKING SYSTEM INTEGRATED INTO THE EUROPEAN

ONE? A MONEY MARKET PERSPECTIVE ...................................................................... 494

LOVIN HORAŢIU ....................................................................................................................................................... 494

THE RECOVERY TERM’S CONTRIBUTION TO THE IDENTIFICATION OF VALUE

LOSSES FROM THE USE OF FIXED ASSETS .................................................................. 500

MANEA MARINELA – DANIELA ................................................................................................................................... 500

BASEL III - THE STABILITY OF FINANCIAL SYSTEM ................................................ 506

MARIN CORNELIA .................................................................................................................................................... 506

CONSIDERATIONS ON ECONOMIC INFORMATION SYSTEM OF PROFIT UNITS

..................................................................................................................................................... 513

MÂRZA BOGDAN ..................................................................................................................................................... 513 SAVA RALUCA .......................................................................................................................................................... 513

9

ŞERBU RĂZVAN ....................................................................................................................................................... 513

THE DETERMINANTS OF BUDGET DEFICIT IN ROMANIA ...................................... 518

MESEA OANA ELENA ................................................................................................................................................ 518

APPROACH THROUGH PRACTICAL RESEARCH OF INTELLECTUAL CAPITAL

..................................................................................................................................................... 528

MIHAI IRINA ............................................................................................................................................................ 528 CIOBAN ALEXANDRA NARCISA .................................................................................................................................... 528 BALAN IOANA ......................................................................................................................................................... 528

NEW PERSPECTIVES FOR INTERNAL AUDIT WITHIN FINANCIAL INSTITUTION

IN THE LIGHT OF CORPORATE GOVERNANCE .......................................................... 534

MIHĂILESCU CIPRIAN TEODOR .................................................................................................................................. 534

FISCAL POLICY’S INFLUENCE ON ECONOMIC GROWTH IN THE EUROPEAN

UNION ........................................................................................................................................ 542

MIHAIU DIANA MARIETA .......................................................................................................................................... 542 OPREANA ALIN ....................................................................................................................................................... 542

RELEVANCE OF ACCOUNTING INFORMATION FOR THE MARKET VALUE OF A

COMPANY. CASE STUDY ON THE BUCHAREST STOCK EXCHANGE ................... 547

MILOŞ MARIUS CRISTIAN .......................................................................................................................................... 547 NICU IOANA ............................................................................................................................................................ 547 MILOŞ LAURA RAIS ................................................................................................................................................... 547

ASPECTS REGARDING FISCAL HARMONIZATION IN EUROPEAN UNION ......... 555

MOLDOVAN IOSIF ................................................................................................................................................... 555

BUSINESS FAILURE PREDICTION FOR ROMANIAN SMES USING

MULTIVARIATE DISCRIMINANT ANALYSIS ................................................................ 562

MOSCALU MARICICA ............................................................................................................................................... 562

THE BUSINESS MODEL AND FINANCIAL ASSETS MEASUREMENT ...................... 572

NICULA ILEANA ....................................................................................................................................................... 572

LOCAL BUDGET CONSOLIDATION AS AN INSTRUMENT OF LOCAL AUTONOMY

– EVIDENCE FROM ROMANIA ........................................................................................... 577

OPREA FLORIN ........................................................................................................................................................ 577 CIGU ELENA ............................................................................................................................................................ 577

MARKET INFORMATIONAL EFFICIENCY TESTS AND ITS CRITICS: THE CASE

OF EMERGENT CAPITAL MARKETS ............................................................................... 586

OPREAN CAMELIA ................................................................................................................................................... 586 BRĂTIAN VASILE ...................................................................................................................................................... 586

POST-CRISIS EXCHANGE RATE ARRANGEMENTS IN EUROPE ............................. 596

ORĂŞTEAN RAMONA ............................................................................................................................................... 596 MĂRGINEAN SILVIA ................................................................................................................................................ 596

QUALITATIVE ANALYSIS OF THE SIGNIFICANCE OF CREDIT RATING............. 603

ORHEIAN OANA MIHAELA ........................................................................................................................................ 603

ACCOUNTING MODELS SPECIFIC TO THE INDEPENDENT EXPORT OF GOODS

WITH SIGHT COLLECTION ................................................................................................ 610

PALIU – POPA LUCIA ............................................................................................................................................... 610

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RURAL DEVELOPMENT POLICY IN ROMANIA IN THE CONTEXT OF

REFORMING THE COMMON AGRICULTURAL POLICY AFTER 2013.................... 618

PĂUN (ŞARAMET) GEORGETA .................................................................................................................................. 618 PĂUN (CIOBANU) MIHAELA CRISTINA ........................................................................................................................ 618 CIOBANU LAURA ..................................................................................................................................................... 618

CURRENT ISSUES OF FISCAL CONTROL IN ROMANIA ............................................ 626

POP IOAN ................................................................................................................................................................ 626 MOLNAR ANDRA ..................................................................................................................................................... 626 GABAN LUCIAN ....................................................................................................................................................... 626

SELECTED ASPECTS OVER A STUDY ON FINANCING ASSETS USING FINANCIAL

LEASING IN SIBIU COUNTY ............................................................................................... 632

POPA DANIELA ........................................................................................................................................................ 632 HALMI MIRELA ........................................................................................................................................................ 632

FISCAL AND BUDGET POLICIES – MAJOR COMPONENTS OF ECONOMIC AND

SOCIAL POLICY MIX IN ROMANIA AT PRESENT AND IN FUTURE ....................... 643

POPA IONELA .......................................................................................................................................................... 643 CODREANU DIANA .................................................................................................................................................. 643 ALBICI MIHAELA ...................................................................................................................................................... 643

CREATIVITY VERSUS ILLEGALITY WHEN OPTIMIZING A COMPANY’S FISCAL

COST .......................................................................................................................................... 648

POPA MIHAELA........................................................................................................................................................ 648

ACCOUNTANCY – INFORMATION SOURCE FOR KNOWING THE ECONOMIC

AND FINANCIAL ACTIVITY................................................................................................ 654

PUICAN LILIANA ...................................................................................................................................................... 654 AVRAM MARIOARA .................................................................................................................................................. 654

CREDIT RISK TRANSFER MECHANISMS IN THE EU BANKING SECTOR ............ 661

ROMAN ANGELA ..................................................................................................................................................... 661 ŞARGU ALINA CAMELIA ............................................................................................................................................. 661

THE MANAGERIAL ACCOUNTING - A WAY OF PERFORMING FINANCIAL

MANAGEMENT IN ROMANIAN SMALL AND MEDIUM-SIZED ENTERPRISES .... 670

SABOU FELICIA ........................................................................................................................................................ 670

FINANCIAL INSTRUMENTS USED TO INCREASE THE ABSORPTION OF EU

FUNDS BEFORE AND AFTER EU ACCESSION, IMPORTANT INFLUENCE ON

ROMANIAN AGRICULTURAL POLICY............................................................................ 675

SASU GEORGICĂ ....................................................................................................................................................... 675 IONCEF CEZAR-SĂNDEL ............................................................................................................................................. 675

CHALLENGES OF OPERATING AND COMPLYING WITH THE UCITS IV

DIRECTIVE .............................................................................................................................. 686

SAVA CĂTĂLINA ....................................................................................................................................................... 686 RADU IOANA ........................................................................................................................................................... 686

MODELS OF PERSONAL INCOME TAX ........................................................................... 692

SAVA VALENTIN ....................................................................................................................................................... 692 TUREATCÃ MANUELA VIOLETA .................................................................................................................................. 692

CREDITING THE AGRICULTURE - A PAST AND PRESENT CONCERN OF THE

ROMANIAN BANKING SYSTEM ........................................................................................ 698

11

SBÂRCEA IOANA RALUCA ...................................................................................................................................... 698

ALGORITHM IN THREE STAGES FOR PORTFOLIO OPTIMIZATION -

APPLICATION IN CASE OF ITALIAN STOCK MARKET ............................................. 704

ŞERBAN FLORENTIN ................................................................................................................................................. 704 ŞTEFĂNESCU MARIA VIORICA ................................................................................................................................... 704 DEDU SILVIA............................................................................................................................................................ 704

INVESTMENT PROJECTS ANALYSE METHODOLOGY .............................................. 712

SIMEN ANTONETA .................................................................................................................................................... 712

POSSIBILITIES OF CREATING A CONSISTENT AND PREDICTABLE

FRAMEWORK IN TERMS OF COSTS AND REVENUES FOR RAIL

INFRASTRUCTURE MANAGEMENT IN ROMANIA ...................................................... 716

STANCIU JENI AURA ................................................................................................................................................. 716 ION CLAUDIA ........................................................................................................................................................... 716 MUNTEANU VICTOR ............................................................................................................................................... 716

A FINANCIAL PROGRAMMING MODEL – REPRESENTATIVE INDICATORS AND

SCENARIOS.............................................................................................................................. 725

STANICA NICOLAE CRISTIAN ...................................................................................................................................... 725

HOW DO OWNERSHIP FEATURES AFFECT CORPORATE GOVERNANCE

DISCLOSURE? – THE CASE OF BANKING SYSTEM ..................................................... 732

ŞTEFĂNESCU CRISTINA ALEXANDRINA ........................................................................................................................ 732

THE CURRENT INTERNATIONAL FINANCIAL CRISIS AND THE FINANCIAL

SUPERVISION INSTITUTIONAL ARRANGEMENTS EFFECTIVENESS IN THE

EUROPEAN UNION COUNTRIES ....................................................................................... 741

STOICA OVIDIU ....................................................................................................................................................... 741 CĂPRARU BOGDAN .................................................................................................................................................. 741

A FINANCIAL-ACCOUNTING APPROACH TO PERFORMANCE, IDENTIFYING

FINANCIAL KEY COMPONENTS ....................................................................................... 749

TANASĂ FLORENTIN-EMIL ......................................................................................................................................... 749 HOROMNEA EMIL .................................................................................................................................................. 749 UNGUREANU SEBASTIAN ......................................................................................................................................... 749

CONSIDERATIONS OVER THE METHODOLOGY OF FINANCIAL ANALYSIS AND

ITS LINKAGE WITH BANKABILITY OF EUROPEAN FUNDED INVESTMENT

PROJECTS ................................................................................................................................ 759

TRENCA IOAN ......................................................................................................................................................... 759 PETRIA NICOLAE ...................................................................................................................................................... 759 DROJ LAURENŢIU...................................................................................................................................................... 759

THE TOLERANCE AND OPERATIONAL RISK APPETITE IN BANKING ................ 769

TRENCA IOAN ......................................................................................................................................................... 769 PETRIA NICOLAE ...................................................................................................................................................... 769 MUTU SIMONA........................................................................................................................................................ 769

TAXATION AND SUSTAINABLE DEVELOPMENT ........................................................ 776

TUREATCÃ MANUELA VIOLETA .................................................................................................................................. 776 SAVA VALENTIN ....................................................................................................................................................... 776

ANALYSIS OF FACTORS INFLUENCING THE LEVEL AND DYNAMICS OF NET

PROFITS .................................................................................................................................... 783

12

UNGUREANU SEBASTIAN ......................................................................................................................................... 783 TĂNASE FLORENTIN EMIL .......................................................................................................................................... 783

STUDY REGARDING THE EVOLUTION OF THE WORKING CAPITAL AND THE

NECESSARY WORKING CAPITAL FOR 20 ROMANIAN COMPANIES DURING 2008

– 2010 .......................................................................................................................................... 792

VASIU DIANA ELENA ................................................................................................................................................. 792 CIUDIN ADRIAN ....................................................................................................................................................... 792

STUDY OF DETERMINANT FACTORS OF DIVIDEND POLICY PROMOTED BY

COMPANIES LISTED ON BUCHAREST STOCK EXCHANGE ..................................... 803

VINTILĂ GEORGETA .................................................................................................................................................. 803 MOSCU RALUCA GEORGIANA ..................................................................................................................................... 803

PUBLIC DEBT SERVICE AND ITS IMPACT ON PUBLIC EXPENDITURES ............. 813

ZUGRAVU BOGDAN GABRIEL ..................................................................................................................................... 813 DOBRANSCHI MARIAN ............................................................................................................................................ 813

PUBLIC EXPENDITURES IMPACT ON ECONOMIC GROWTH: EVIDENCES FOR

ROMANIA ................................................................................................................................. 823

ZUGRAVU BOGDAN-GABRIEL .................................................................................................................................... 823 SAVA ANCA-ŞTEFANIA ............................................................................................................................................... 823

661

CREDIT RISK TRANSFER MECHANISMS IN THE EU BANKING SECTOR

ROMAN Angela

Ph. D. Associate Professor, Faculty of Economics and Business Administration/Department of Business

Administration, Alexandru Ioan Cuza University, Iaşi, Romania, aboariu@uaic.ro

ŞARGU Alina Camelia

Ph. D. Student, Faculty of Economics and Business Administration/Department of Business Administration,

Alexandru Ioan Cuza University, Iaşi, Romania, s_alina_camelia@yahoo.com

Abstract: In the last two decades the usage of innovative financial instruments has increased in the

European banking sector. Traditional instruments like loans sales have been complemented by new ones like the

credit derivatives instruments. In this context, the aim of our research is to test if and how the usage of the credit

derivatives instruments and the loans sales operations can be influenced by a series of banks characteristics. In

order to achieve this we have used a multiple linear regression analysis, where the independent variables were

represented by a series of banks characteristics, like banks size, their profitability or capitalisation ratio and the

dependent variables were represented by the estimations made regarding the major European banks presence on

credit derivatives and loans sales markets. The sample used was comprised from the major 20 banking groups

located in the European Union and the analysed period was 2007-2009. The obtained results suggest that larger

banks, well capitalised and strongly geographically diversified tend to be the most active in credit derivatives

instruments operations, while loans sales operations tend to be dominated by the banks well diversified, highly

capitalise and that have very good loaning opportunities.

Key words: credit derivatives, loan sales, banks, regression analysis

JEL classification: C 39, G 15, G 21

1. Introduction

The traditional credit risks transfer instruments, like loans sales, have been used in practice for

quite some time, while the new mechanism for credit risks transfer, like credit derivative instruments,

have been developed and became very popular only in the last 10 years. The statistics of the British

Bankers Association underline that the size of the credit derivative market has grown dramatically in the

last years, from 893 billion USD in 2000 to 23000 billion USD in 2009. Different market researches (see

BBA, 2006) underline that approximately only 1/3 of the transactions with such instruments are related to

the banks loans portfolio. Despite all this, the credit derivatives instruments have quickly gained an

important role on the credit risk transfer market. More traditional instruments, like loans sales, have also

registered an increase in the last years, their value almost doubled from 112 billion dollars in 2002 to 221

billion dollars in 2009 (LSTA, 2009).

In this context, the aim of the paper is to test if and how a series of banks characteristics are

influencing the transactions undertaken by the major European Banks with credit derivatives instruments

and loans sales operations. In order to achieve this we have used a multiple linear regression analysis,

choosing a series of banks characteristics as the independent variables. In addition we have performed

also a T-test in order to establish if the banks from our sample are forming a homogenous group. The

obtained results underline that the larger banks tend to be involved in credit derivatives operations while

the banks more geographically diversified and with a high capitalisation ratio tend to be the most

involved institutions in loans sales operations.

In order to achieve this the reminder of the research is organised as follow: the second part is

dedicated to a review of the academic literature on this subject, the third part presents the data and

methodology employed in our research, part four presents the empirical results for the usage of credit

derivative instruments and loans sales operations and part five contains the concluding remarks.

2. Review of the academic literature

Many researches from the academic literature have tried over time to address the question on the

need of the existence of a loan sales market as well as of a credit derivatives market. According to this

literature, many of the arguments are consistent with those existing in the case of the financial

innovations in general.

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diversified are the main actors on this market. In regard to the loans sales operations, these are undertaken

especially by the well diversified banks, that have a high capitalisation ratio and that are having extremely

good loaning opportunities, these banking institutions dominating the secondary credit market in the

European Union.

6. Acknowledgments

I hereby acknowledge the support of the “Alexandru Ioan Cuza” University of Iasi, in the

development of this article through the grant POSDRU/88/1.5/S/47646, entitled “Studii doctorale: portal

spre o carieră de excelenţă în cercetare şi societatea cunoaşterii”, co-financed through the European

Social Fund, within the Sector Operational Programme Human Resources Development 2007-2013.

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