Search

The appearance of Coronavirus pandemic in the European Union has led to the state of emergency declaration in almost all countries, with a few Nordic exceptions. This state of emergency has led to the temporary closure of certain economic activities from different branches of the national economies. The consequences of this measure have led to either job losses or sending employees into technical unemployment. Short-term economic forecasts are not at all encouraging for the European economy. Being the main export market for Romanian products and services, the economic means and measures that will be taken for the European economy to recover must be taken and pursued with a close eye on macroeconomic indicators. The present paper wants to point out the negative effects of the European economic shutdown on the Bihor county companies that register foreign trade activities, mainly exports on the European markets. Based on the data provided by AJOFM, the Bihor county employment agency for the following months January, February, March, April, several factors will be analyzed that determined the Bihor county companies with foreign trade activities to temporarily suspend their activity and work contracts for their own employees. One factor analyzed follows the typology of companies that have either reduced their foreign trade activity or have completely suspended their activity, in terms of their size: micro-enterprises, small enterprises, medium-sized enterprises, large enterprises. Another factor taken into consideration follows the number of external contracts that the companies had, that can reveal the number of customers for whom they produced. This factor leads to the following one which analyzes whether there is a temporal difference in the temporary or total activity suspension between enterprises with a single foreign customer compared to those that produce for several customers. The next factor analyzed concerns the period in which companies start asking for help and registering all their employees for technical unemployment or only partially reducing their activity. Certain elements of a financial nature will also be taken into account, which could have prevented the period of temporary or total suspension of activity. Finally, conclusions will be drawn and proposals will be made to prevent such a phenomenon.

The balance of payments stands for both good and bad impact on the economy as a whole. If the country registers a current account deficit, than the result will highlight more imports than exports. If the country runs a current account surplus, than it exports more than it imports. Both cases are unfavourable for that countries economy, because it creates headaches for all the decision makers. This current paper analyses only the first part of the balance of payments, and that is the problem of a current account deficit. For a better understanding of the analyzed phenomenon, the paper will carry out a comparative analysis of the results achieved by Romania and other member countries of the European Union. For this analysis the next countries were chosen: Bulgaria, Poland and Hungary. This was done for a parallel analysis of data recorded in the current account. Representative data was taken from the Eurostat and the annual reports of the central banks of each analyzed country. After this, based on the data above, the paper highlights Roubini (1998) elements in calculating the current account sustainability. It takes into account several elements that lead to a sustainable balance of the current account deficit. Among them the author lists: foreign reserves calculated in months of imports; the share of exports in GDP, expressed as a percentage; openness degree of the economy expressed as a percentage; public external debt relative to exports; the ability to attract foreign direct investment. All this research is needed in order to express as accurately as it can be done, the sustainability degree of current account deficit. Based on this, the paper will asses which country has the most sustainable current account, and what measures are suited if not. The conclusions will be made strictly regarding sustainability points, and some potential future measures will be highlighted in order to improve the current status.

Terms of trade are meant to show the ratio by which a country is different in the level and dynamics of revenues from the exchange made by different categories of products on the external markets. The level of recorded revenues from the commercialization of products and services varies from country to country, and there is rarely a mutually beneficial exchange situation from these operations. Trade efficiency analysis lies in the determination of the terms of trade. In the current paper, international developments are analyzed based on net terms of trade index used by UNCTAD. Statistical data are provided by the World Bank, where export and import price index and the volume of imports and exports by countries were considered. The classification of the countries has been done according to the geographical orientation and based on the purchasing power parity, thus creating two tables, the first table highlighting seven regions, and the second table with seven categories of states including OPEC and non-OPEC members. The terms of trade evolution are influenced by certain important factors in the production process of goods and services. Some of these factors are mentioned: labour productivity; changes in commodity prices; yet, only the last factor is examined in this paper. Based on World Bank commodity price data, the evolution of major energy inputs such as crude oil, gas, coal, and major industrial raw materials such as aluminium, copper, lead, nickel, tin, zinc, silver, gold, platinum and iron was analysed and interpreted. For Romania, the data on terms of trade evolution shows a dramatic situation. If terms of trade development presented a cyclical evolution, the economy as a whole would send an optimistic message. In contrast, the data presented in the following paper will show that our country has registered continuous depreciation of the terms of trade ratio, with a direct impact on external trade balance deficits, a rising external debt and a declining purchasing power for the population. The conclusions address some of the remedies that our country needs in order to improve.

The aim of this paper is to emphasize the possible engines that can boost Romanian foreign trade from a chronic deficit to a more balanced one. In the beginning, we present the main theories and models that tackle the subject. In this matter, the paper starts with the analysis of neo-factors, Porter, the gravitational model, the input-output model, and the terms of trade in order to see the historic thought of trade model development. Following these models, a more mathematical approach is made, using a thorough analysis at the product level. All the computations are based on the combined nomenclature with its XXII classes, being the most exact determinant of traded goods. The paper uses statistic indexes as: Hirschman concentration index, elasticity coefficient, the degree of trade openness, in order to determine the specialization effect of the Romanian classes for a period of twenty one years, starting in 1991 and ending in 2012. This is the point where former, current and future specialized engines of potential trade growth can be established. It is crucial for a country to determine its potential in an open international arena, in order to take the necessary steps to encourage or discourage productive or non-productive areas of certain industry branches. Based on the results and on the previous methodology, a mix of theory with solid mathematical analyses, gives the opportunity to draw up different sets of sustainable development formulas in order to obtain a higher concentration ratio regarding several classes from the combined nomenclature. For Romania to obtain higher gains from international trade, a more sustainable integration in the European Union, it has to stop its chronic balance of trade deficit. Looking at and analysing the potential development of a combined nomenclature class or classes will help improving Romania’s chronic deficit, offering a long term prospective of sustainable development, reducing its foreign debt, improving its balance of trade accounts, and transforming its import driven economy to a more competitive export oriented economy. Achieving these standards can ensure Romania’s future growth and accession to a more privileged seat in the European Union and in the international arena.

The purpose of the current paper is to highlight possible engines that can boost Romanian foreign trade from a chronic deficit to a more balanced one. In the beginning, the main theories and models that tackle this subject will be presented. In this respect, the paper starts with Smith, Ricardo, Manoilescu and Heckscher-Ohlin, in order to see the historic thought of trade model development. Following these models, a more mathematical approach will be made, using a thorough analysis at the product level. All the computations will be based on the combined nomenclature with its XXII classes, being the most exact determinant of traded goods. This paper uses the statistical indicators of Michaely and Lafay, in order to determine the specialization effect of the Romanian classes for a period of twenty one years, starting with 1991 and ending in 2012. This is the point where former, current and future specialized engines of potential trade growth can be established. It is crucial for a country to determine its potential in an open international arena, in order to take the necessary steps to encourage or discourage productive or non-productive areas of certain industry branches. Based on the results and on the previous methodology, a mix of theory with solid mathematical analysis, will gives the opportunity to draw up different sets of sustainable development formulas in order to obtain a higher concentration ratio regarding several classes from the combined nomenclature. For Romania to obtain higher gains from international trade, a more sustainable integration in the European Union, it has to stop its chronic balance of trade deficit. Looking at and analysing the potential development of a combined nomenclature class or classes, will help improving Romania’s chronic deficit, offering a long term prospective of sustainable development, reducing its foreign debt, improving its balance of trade accounts, and transforming its import driven economy to a more competitive export oriented economy. Achieving these standards will ensure Romania’s future development and accession to a more privileged seat in the European Union and in the international arena.

Situated on the border line between Romania and Hungary, Bihor – Hajdu-Bihar counties are blessed with all natural types of terrain. There are mountains in the West, thermal water almost everywhere, caves and underground rivers that can be exploited for economic use. In this paper, the main subject focuses on developing the counties into an international tourist attraction, based on their natural resources. Being able to extract thermal water that is rich in numerous minerals that the human body can absorb, it can offer these counties an important competitive advantage. With age, comes a great deal of expenses in order to keep your body young. Having this natural resource, Bihor – Hajdu-Bihar counties can project its goals on the development of future spas, which can attract tourists as well as investors. The methodology focuses first on identifying those areas that are rich in these thermal waters. Then, there will be presented a sketch of the ideal tourist profile for this type of activity. Then, based on the ideal tourist profile, there will be a selection of countries were these potential tourists live. If the county desires to adopt this plan, there will be extensive structural modifications on all economical and educational sectors in order to obtain maximum performances. The selection of future potential investors will be crucial for the future activities of the county. If the main objective will be the construction of spas, there will be an increase demand for qualified medical staff. This knowledge can be attained only in medical universities. The courses of a medical university can be followed only by those persons that have a bio-chemistry high school profile. If the investments will be made in this sector, the number of students of the medical university and of local high schools will have to increase exponentially. The tourists that will come will have to benefit from a treatment based on different products. The strategy should include attracting those investors that produce goods designed for body enrichment, and not to import these products from abroad. All these strategies that include investors, the education system, city halls, politicians and fiscal stimulus, can and will lead to a success story.

The architecture of the Chinese economy began to take shape in the late 1980's, because of the new reforms that the Chinese Communist Party started to take. With the death of Mao Zedong in 1976, the Chinese leadership is taken by Deng Xiaoping, who stated a blitz course in capitalism. The new president encouraged foreign direct investments by creating special economic zones near the costal cities, were foreign companies obtained several tax brakes and other incentives, only to invest in those regions. With the help of statistical data from WTO, IMF, and the World Bank, the current paper analyzes the impact of these special economic zones on the Chinese economy, raging from mutations in the labor market and economic sectors structure and their evolution in the formation of the GDP, FDI inflows, and last but not least external trade and current account situation. On the other hand, the paper tries to make a connection with Romania, computing and predicting, based on the Chinese figures, the way in which the Romanian economy, by creating four economic zones within the counties of Satu Mare, Bihor, Arad, and Constanta, will be able to experience the same growth. The first three counties have been piked up based on their proximity to the Schengen area, and/or on their infrastructure, plain terrain, and a qualified and skilled labour force. Constanta, the only one that resembles with its Chinese counterparts, has been considered because of its capabilities of shipping products right away as they are manufactured. The results would decrease the disparity that exists in revenue levels across Romania, Bucharest leading the group way ahead of the other counties. Foreign direct investments in those areas will attract more others made by the local authorities in the infrastructure (schools, universities, roads, airports, high speed railways). This development will have a direct impact on the current account of the Romania's balance sheet of payments, while its external trade deficit will reduce in time, even transforming in a trade surplus, and helping this way in putting an end to the chronically external debt.

Trade patterns across the globe vary in certain ways. For the EU27, the analyzed data suggests that approximately 70% of all Romania's imports, and the same amount of its exports, are intra-community oriented. The question that arises is what will happen to te Romania's external trade, if a crisis hits Europe? If countries like Germany, France, Italy, and United Kingdom are hit the hardest in this hypothetical European crisis, Romania will soon follow them. In order to decrease the impact of such possibility, it is necessary to tap new trade opportunities. For this purpose, first we have to analyze the present situation. Based on Eurostat, World Trade Organization, and the Romanian Statistics Institute data from 1999 to 2009, and on the works about trade creation (Balassa 1965, Jovanovic 2005, Molle 2006), the paper wants to point out the aspects of trade concentration in certain regions after the establishment of free trade agreements, and the danger posed by financial crises. This paper analyzes first the situation in the EU27, scanning each member state in order to see the degree of trade relations intra / extra EU. The data will be than compared to another set of analyzes of other four important regions, the Andean Community, ASEAN, MERCOSUR, and NAFTA, whose free trade agreements could support such of comparison with the EU trade relations. The paper follows the assumption that EU27 has the most integrated trade relations among all the analyzed regions. Based on this assumption and on statistical data that points out the percentage change of total imports and exports in the Romanian GDP, some conclusions will be drown out in order to establish some necessary measures to prevent a future crisis, measures that involve the political class, taping new trade opportunities such as Latin American countries, Middle Eastern countries, and South-East Asia, but not forgetting Russia, Romania's former main export partner, establishing clear objectives to future embassy personnel, and a more aggressive advertising campaign in the selected target markets conducted by national agencies.

The main purpose of the balance of payments (BoP) is identified as representing the long term need of equilibrium and stability of the international payments and revenues. The purpose of this paper is to determine the factors that influence the balance of payments of a certain country, by using a rigorous classification that reveals the complexity of these factors. Our conclusions are very relevant, especially for countries like Romania, because, in order to achieve the external equilibrium, it seems that every county must adopt a mix of internal economic policies, and although theoretically this can be realised, sometimes in practice it can prove to be impossible on account of inability or refusing to combine the appropriate economic policies.

The main purpose of the paper is to explain what measures can be taken in order to fix the trade deficit, and the pressure that is upon a country by imposing such measures. The international and the national supply and demand conditions change rapidly, and if a country doesn’t succeed in keeping a tight control over its deficit, a lot of factors will affect its wellbeing. In order to reduce the external trade deficit, the government needs to resort to several techniques. The desired result is to have a balanced current account, and therefore, the government is free to use measures such as fixing its exchange rate, reducing government spending etc. We have shown that all these measures will have a certain impact upon an economy, by allowing its exports to thrive and eliminate the danger from excessive imports, or vice-versa. The main conclusion our paper is that government intervention is allowed in order to maintain the balance of the current account.

The methods that a country’s central bank uses to control the total amount of money in circulation and affect trade, consumption, and economic growth are collectively referred to as monetary policy. A monetary expansionary policy entails a reduction in interest rates. As borrowing costs decrease, customers are encouraged to borrow more money and spend more, which boosts consumer spending and promotes economic growth. On the other hand, when interest rates rise during contractionary monetary policy, saving becomes more appealing while borrowing becomes more expensive. As a result, consumers may cut down on spending, which has an impact on aggregate consumption. Businesses are encouraged to invest by lower interest rates brought on by expansionary policies. They may borrow money more cheaply, which boosts imports, company expansion, and capital expenditures. Trade can increase if expansionary measures cause the home currency to weaken and become more appealing to export. In contrast, exports can be hampered by a rising currency. In conclusion, trade dynamics, corporate investment, and consumption patterns should be all greatly impacted by monetary policy measures. In order to find out some evidence about the monetary policy and its impact on consumption and trade in Romania, the paper uses statistical information from the National Bank of Romania between 2003 and 2023 for the monetary policy interest rate. This is going to be assessed base on its impact upon: Final consumption expenditure of general government; Final consumption expenditure of households; Gross capital formation; Exports of goods and services; Imports of goods and services; all of this taken from Eurostat. The results should point out if an increase or decrease of monetary policy interest rate is going to produce an impact upon consumption and trade, or the contrary is going to take place.

People have been moving from one area to another since ancient times in order to exchange products from one nation with those from another in order to obtain what was lacking in the nation where they resided. These were the first product-to-product trades, and the latter was placed into circulation on money as a product-to-product trade. These early types of commerce have evolved significantly, and they continue to do so now as capital flows from one country to another. This phenomenon, which has influenced worldwide economic growth and improved living standards, saw significant expansion in the twenty-first century in the form of loans used to fund economic development in many nations, as well as ownership of financial assets. In the present era, domestic capital is insufficient for countries to thrive and remain competitive in global markets. For emerging economies, foreign investments that enter the host country as debt or money are crucial financial resources. In this paper, we will discuss the data on the development of exports and FDI of 22 countries from around the world and analysed the evolution of FDI, GDP and exports over a period of 40 years to see trends and patterns of FDI and Exports and their contribution to the economic growth of countries. Broken up in groups, the paper will compare and assess certain countries/regions, grouping and pairing them with economies or countries of similar growth/stance. Corroborating this statistics with recent global events and based on the previous statistics, this paper will try to predict the future trends of FDI around the world.

The research carried out on Romania's foreign trade performance aimed at establishing the impact of the Romania's accession to the EU onto the Romanian external trade balance. Another important scientific contribution is the analysis of the impact of the new Romanian trade policy on the general evolution of Romania's foreign trade during the period 1995-2016, for which we used a series of general indicators that we usually find in the statistical yearbooks , under the names of: export value (FOB prices); import value (CIF prices); value of imports (FOB prices); trade balance (FOB exports - CIF imports); trade balance (FOB exports - FOB imports); export per capita. In today's context, it is justified to identify innovative methods and strategies for establishing and capitalizing on the competitive advantages of Romanian companies engaged in foreign trade as a result of our country's accession to the European Union, in order to solve the complex economic problems generated by the major trade deficit of Romania, as well as the creation of mechanisms for implementing the strategies and methods resulting from the researchers conducted to reduce this deficit and to maximize the positive effects of Romania's accession to the EU. As this article shows, Romania's degree of international openness has been sinuous, with the year 2016 being the year when it reached the maximum value of the analyzed period of 83.71%. To this result, an important contribution was almost equal to exports and imports (around 42.32% of trade opening from imports and 41.39% of exports), which represents a significant improvement over the period 2000-2013. Also our analyse for Romania shows that excepting the years 1995-1996, 1998, 2000-2001 and 2003-2007, respectively, 2016, the coefficient of elasticity of imports was higher than the modulus of elasticity of exports, although subunit in the years 1997, 1999, 2005, 2007-2009 and 2013 respectively. Certainly, future research directions will mainly address and develop the same directions we have been dealing with so far, but deepening our research in several directions, such as: regulatory aspects of international trade by investigating the extensive ramifications of the tensions that exist in the relationship between the WTO and the regional trade agreements, which we consider to be of systemic significance, as they also place strong emphasis on Romanian foreign trade and commercial policy, Romania, as an EU member, being part of more than half of the world's functioning bilateral trade agreements; geographic reorientation of Romania's foreign trade by providing studies to Romanian business agents enabling them to maximize the opportunities offered by the rich portfolio of free trade agreements made available by the European Union on the basis of the products that make up current structure.

The empirical studies carried out on Romania's foreign trade performance aimed at establishing, on the one hand, the products with which Romania is competitive in the foreign markets and which are the external markets that the Romanian products are most competitive, so that the responsible factors the Romanian foreign trade can adopt the strategy of correct and scientifically based promotion at a macroeconomic level and on the other hand to indicate to the Romanian economic agents the directions they must orientate or reorient their exports in order to maximize the derived positive effects from the EU accession, taking advantage of the free trade agreements that we have also taken as partners from the moment of Romania's accession to the EU, agreements that create us access in advantageous conditions, of high competitiveness, on foreign markets with which Romania did not agree before the EU accession, and at the same time to encourage the export activity of the Romanian economic agents that produce products identified in the researches carried out in this study, as having a high competitive potential for export on the markets concerned. In this context, we were concerned with the identification of innovative methods and strategies for establishing and capitalizing on the competitive advantages of Romanian companies with foreign trade activity as a result of our country's accession to the European Union, in order to solve the complex economic problems generated by the major trade deficit Romania, as well as the creation of mechanisms for implementing the strategies and methods resulting from the research conducted to reduce this deficit and to maximize the positive effects of Romania's accession to the EU. As it is well known, export competitiveness is a fertile ground for analyzing entrepreneurial potential and how it manifests itself, with entrepreneurial culture representing, together with other specialized factors of production, an important source of competitive advantage and one of the determinants of national competitive advantages. The analysis of the exchange ratio and coverage and specialization of the foreign trade for the whole period 1990-2016 was also carried out in order to highlight the evolution of Romania's foreign trade and the strategic role played by the European Union in this evolution. The present study presents only the analyses and their results for the period 2000-2016, considered eloquent for the European economic integration of Romania, taking into account the fact that in February 2000 the negotiations for the accession of our country to the EU started.

The potential of any organization depends, firstly, on its human potential. Human resource, especially through managerial activity, augments the material and financial potential of any organization. On the other hand, the public administration in Romania as an EU member state and elsewhere has been and still is subject to numerous criticisms concerning the functioning and quality of its provided services. The conducted research is characterized by a sequential approach. It begins by establishing the research goals, after that continues with establishing the research methodology, conducting effective research, presentation of the results representing the final stage of the paper. The overall objective of the conducted research is substantiating the importance of evaluation of human resources in public administration. Fulfilling this objective is done by pursuing and achieving the following general objectives: approaches to human resource management in public administration; highlighting the main aspects specific to the new public management (NPM); the new public management reform areas; corruption in public administration; conceptual approach in terms of performance and evaluation of human resources; performance measurement in public administration in Romania; basically a study showing the importance of evaluating human resources. Developments in the realms of economics in general and administrative sciences, in particular, raise the issue of performance measurement of the public administration in Romania from the EU perspective. There is a significant difference between the level of public services expected by citizens and the existing resources in public administration. Given this low level, an increase in the quality of these services would mean a performance increase recorded in the public sector. This paper will pursue the issue by conducting a synthesis of literature investigation. In this analysis, the paper took into account the definition of performance, based on a review of the literature and the relevant legal regulations. It took also into account an analysis on the performance measurement of the public administration in our country, as well as within the EU.

The potential of any organization depends, firstly, on its human potential. Human resource, especially through managerial activity, augments the material and financial potential of any organization. On the other hand, the public administration in Romania and elsewhere has been and is subject to numerous criticisms concerning the functioning and quality of its provided services. The conducted research is characterized by a sequential approach. It begins by establishing the research goals, after that continues with establishing the research methodology, conducting effective research, presentation of the results representing the final stage of the paper. The overall objective of the conducted research is substantiating the importance of evaluation of human resources in public administration. Fulfilling this objective is done by pursuing and achieving the following general objectives: approaches to human resource management in public administration; highlighting the main aspects specific to the new public management (NPM); the new public management reform areas; corruption in public administration; conceptual approach in terms of performance and evaluation of human resources; performance measurement in public administration in Romania; basically a study showing the importance of evaluating human resources. The approach process of the human resources management in the public sector requires a particle analysis framework to be able to highlight the influence that the political side it has on its evolution. Rosembloom (1982) considers that a long time has been pursued an assimilation of values from the private into the public domain in the management process in general and of human resources in particular. In this section we try to present what are the main approaches to human resource management in public administration, focusing on their sizing and performance evaluation in relation to the volume and quality level of activities. We will also highlight the role of management control in increasing the performance of human resources in public administration, in the EU context.

Within the wide field of creative accounting, the main preoccupation of researchers surrounded earnings management. The current study comes to acknowledge that creative cash flow may distort the assessment of financial performance and should therefore, become a subject of the same interest for analysts and investors, as earnings management is. In order to reach the objective proposed, there are two hypotheses formulated, to be validated within the research: H1: Creative accounting distorts cash flow reporting within the boundaries of current regulations. H2: Real activity manipulation alters significantly the operating cash flow. The steps followed were analyzing the accounting standard related to cash flow statement, IAS 7, in order to uncover issues not taken into account, or options of allocation provided for accountants, which could lead to opportunistic choices and lack of comparability. The relevant literature was reviewed, so as to identify the opinions of accounting and finance specialists related to this subject, the results of their scientific process. The final step was a synthesis of relevant results and observations, which lead to the acceptance of the hypothesis of the research. Moreover, several techniques were identified, both related to creative accounting and to real activity manipulation, influencing mainly the figure reflecting operating cash flow, and thus the image on the potential of business continuity. Main conclusions were that the techniques applied were within the limits set by the standard: opportunistic allocation of dividends and interest collected or paid misallocation of certain activities like sale of receivables, but mainly recording non-recurring events into the operating cash flow, without separate notes of information or adjustments. Real activity manipulation should also be considered as it is even more difficult to detect, unless analysis is also performed on notes to financial reports and the figures within the profit and loss account. The contribution of the current study is providing a synthetic arrgumentation to why cash flow should be analysed in the context of creative accounting, reviewing methods and techniques that distort significantly the results of operating activity, providing basis for further study related to the impact of such practices on forecasts of cash flow and predictability of bankruptcy.

The present study has as main objective to reflect the state of literature regarding free cash flow, and to withdraw the main pro's and con's in order to create an objective image upon this indicator. The main idea generating this research was the growing interest on cash flow reporting. As many say, 'Cash Flow is King', while in Anglo Saxon countries the interest of investors and analysts in concentrated on operating cash flow, as the most important indicator of the probability of bankruptcy. In this context, voluntary additional reporting, like free cash flow may come either as an aid in providing the fair view or as an opportunistically reported figure. Throughout the paper, the intention was to provide answers to three main research questions: What are the definition and calculation method of free cash flow? Why is there an interest in free cash flow reporting? What is the impact of free cash flow on the agency theory? In order to provide relevant conclusions, four international data basis were used, and related articles and studies were extracted. The results proved that there is no generally accepted definition and computing method, while the format depends on the end-user of the report (shareholders, investors, analysts, bankers, a.s.o.). As stated below, this aspect generates confusion and lack of comparability, giving room to creative accounting techniques. Moreover, the interest on free cash flow reporting is connected mainly to liquidity assessment, company valuation and investors choice. Still, in the context of agency theory, results show that in presence of high free cash flow, managers tend to make investment choices that satisfy their personal interest and that generate low efficiency and profitability for the company. The contribution to current state of research is providing a literature review study, focused on a comparative approach, as well as on underlying an objective image upon a debatable financial indicator and accounting report.