Red flags in financial reporting - empirical studies in the AeRO market

Dănescu, Tatiana; Spătăcean, Ioan Ovidiu; Stejerean, Roxana Maria

doi:10.2478/amso-2021-0002

Cited by 2 publications

(1 citation statement)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We also believe that there is currently a high risk of distortion of financial statements and implicit influencing the opinion and vision of end users who base their investment decision on the information found in financial reports ( Dănescu et al, 2021 ). In this regard, the quality of reports also concerns elements such as ethics and fairness of management.…”

Section: Definition Of the Problem Under Investigationmentioning

confidence: 99%

Companies’ behavior in measuring the quality of financial reports: Pre- and post-pandemic research

Dănescu

Stejerean

2022

Front. Psychol.

Self Cite

View full text Add to dashboard Cite

Since information is the foundation for decision-making by its users, it and the quality associated with it must be given particular importance in order to reduce uncertainties about how it is reported and interpreted and to increase its usefulness. Financial reporting is of relatively great significance to both those who provide it and those who use it, with accounting providing a wide range of sources of financial information, ensuring a high degree of credibility compared to other sources of information. The objective of the research is to highlight the behavior of companies in measuring the quality of issuers’ financial reporting to identify solutions for harmonizing the way financial information is presented with the needs of users. Two hypotheses were defined and tested for this purpose, with the research being segmented over three successive stages. The first stage consists in identifying the appropriate index to measure the quality of financial reporting. The second stage consists in gathering the data and obtaining the quality measurements, for testing the defined hypotheses. The third stage concerns in concluding the results obtained highlight the existing divergences between the period before the health crisis, but also the period immediately after the COVID-19, on the two markets of the Bucharest Stock Exchange (regulated market and AeRO market).

show abstract

Section: Definition Of the Problem Under Investigationmentioning

confidence: 99%

Companies’ behavior in measuring the quality of financial reports: Pre- and post-pandemic research

Dănescu

Stejerean

2022

Front. Psychol.

Self Cite

View full text Add to dashboard Cite

show abstract

Detecting tax evasion in the hospitality and tourism sector

Dumitriu,

Grosu,

Gabriela Cosmulese

2024

Accounting and Financial Control

View full text Add to dashboard Cite

One of the industries with the fastest development is the hospitality and tourism (HoReCa) sector. However, there is also a growing trend in this sector to evade some state taxes. Despite promises that digitalization will reduce tax evasion, this practice nevertheless is a serious threat to the economy and the state. This study aims to process a comprehensive model for screening and risk assessment of tax fraud in the HoReCa sector in Romania. In this sense, an empirical study was conducted using an econometric model to detect tax evasion in the HoReCa sector in Romania, based on a sample of 50 firms for each sub-sector (hotels, restaurants, cafes), analyzing the period 2018–2022. The dependent variable of the model was the tax evasion risk indicator, calculated as the difference between the average financial ratios of each firm and the average for the entire sector. The results show that the leverage ratio has the strongest positive impact on the tax evasion risk indicator. The fixed asset turnover ratio and the accounts receivable turnover ratio also have a significant impact, indicating false sales reports or collection irregularities. The solvency ratio and the immediate liquidity ratio show positive effects on the risk of tax fraud, while the net rate of return is the only one with a negative effect, suggesting that profitable entities are less prone to tax evasion. The proposed model provides a solid basis for identifying high-risk companies directing tax authorities to improve supervision in the HoReCa industry. The findings also highlight the importance of further automating tax reporting systems to reduce the risks of evasion.

show abstract

Red flags in financial reporting - empirical studies in the AeRO market

Cited by 2 publications

References 5 publications

Companies’ behavior in measuring the quality of financial reports: Pre- and post-pandemic research

Companies’ behavior in measuring the quality of financial reports: Pre- and post-pandemic research

Detecting tax evasion in the hospitality and tourism sector

Contact Info

Product

Resources

About