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Worldwide corporate cash holdings have significantly increased and have become an important tool for managers. This study explores the factors that influence firms’ behavior regarding cash holdings and the signal that financial conservatism is sending to potential investors. Our data consists in annual observations collected through the Reuters Eikon platform. It includes companies listed on the Bucharest Stock Exchange, the investigated period being 2005-2014. The econometric analysis employs multivariate regression for an unbalanced panel data, using the OLS technique. The results show a positive correlation of cash holdings with the value registered by this indicator in the previous period, fact that might be interpreted as an attempting of the companies to maintain a target level of cash. Also, the results showed a non-linear relationship between leverage and cash holdings, while the tangible assets determine a negative correlation. As regards firm size and ownership concentration, the correlations were not statistically validated.

The main aim of our empirical analysis is to quantify the social impact of fiscal policies on income redistribution throughout the EU Member States on a database of fiscal, social and economic factors. Our research is conducted by using the Gini coefficient as the indicator of income redistribution, as well as the dependent variable, and the following influencing variables: taxes, index of perception of corruption, tax burden, education level, human development index, private property protection, unemployment rate, GDP per capita, private and public expenditure. Hence, by employing both the 'Least squares' method and the 'Generalized Method of Moments' we have identified significant results which highlight important social and economic development discrepancies throughout the EU Member States, as well as different fiscal policies and legislative frameworks. Moreover, by testing the robustness of the variables, we have identified that taxes exert more negative effects according to the degree of their regressivity. Our results offer strong empirical evidence supporting the idea that beyond designing more balanced fiscal systems (by the use or weight of direct/indirect taxes), public authorities should target the reduction of income inequalities using other instruments and reforms beside the fiscal ones (education, rule of law, legislative systems quality). [ABSTRACT FROM AUTHOR]

Bureaucracy is a common problem in most countries, including the Member States of the European Union. This issue impacts all areas of civil services, including the fiscal system through tax collection and tax compliance. This study aims to analyze the impact of tax reforms on the business environment by using different business confidence indicators as an estimation of the expected evolution of the industrial sector, the construction sector, the retail sector and the services sector, as well as the tax burden as a proxy for the tax reforms. Our research is based on quarterly data collected for the 28 European Union Member States, for a period of 30 years. The conclusions were reached following multiple regression estimations, done for each Member State separately, and followed by a detailed analysis of the results obtained. Thus, focusing on each country individually, the study reveals the influence of reforms in the tax systems on business confidence. [ABSTRACT FROM AUTHOR]

This study aims at empirically investigating the drivers of sustainable economic growth in EU-28 countries. By means of panel data regression models, in the form of fixed and random effects models, alongside system generalized method of moments, we examine several drivers of real gross domestic product (GDP) growth rate, as follows: higher education, business environment, infrastructure, technology, communications, and media, population lifestyle, and demographic changes. As regards higher education, the empirical results show that expenditure per student in higher education and traditional 18-22 year-old students are positively linked with sustainable economic growth, whereas science and technology graduates negatively influence real GDP growth. In terms of business environment, total expenditure on research and development and employment rates of recent graduates contributes to sustainable development, but corruption perceptions index revealed a negative association with economic growth. As well, the results provide support for a negative influence of infrastructure abreast technological measures on economic growth. Besides, we found a negative connection between old-age dependency ratio and sustainable economic growth. [ABSTRACT FROM AUTHOR]

Climate change is a major threat for our planet, with major negative impacts on economies and populations. International and regional organizations, nongovernmental organizations, and governments have joined forces to take meaningful action against it. The European Union has also prioritised the fight against climate change, creating and implementing economic measures as part of its evolving environmental policy. The aim of our paper is to empirically evaluate the effects of environmental taxes on greenhouse gas (GHG) emissions in 20 European countries, in the time frame between 1994 and 2012. Our research is based on data collected from the OECD database, using panel data estimation techniques. In our paper, we analyze the direct effect of environmental taxes on GHG emissions, as well as the indirect effect resulting from environmental expenditures, which are used as control variables. The empirical results we obtained, based on fixed-effect estimates, show that the direct effect of environmental taxes (energy taxes and other taxes) on GHG emissions is negative and statistically significant. Moreover, our findings show that environmental expenditures do not have a significant impact on greenhouse gas (GHG) emissions. Overall, our paper underlines that environmental taxes are extremely important in order to reduce pollution and improve environmental quality in European countries. [ABSTRACT FROM AUTHOR]

The work aims to conduct a study on how corporate governance principles and recommendations are applied in Romania for companies listed on the Bucharest Stock Exchange. In the first part of the work, corporate governance principles and recommendations are presented as they appear in the statement of conformity "Comply or Explain" and Governance Code of BSE and it is subject to verification how companies listed on BSE meet these governance principles and recommendations and where no criteria is fulfilled it is given the explanation which is offered by the company's management. To verify compliance with corporate governance recommendations in Romania we selected a sample of 55 companies listed on the BSE, using public information provided by website BSE (annual reports of 2013, the Comply or Explain statement of 2013). Research methodology is based on an index of corporate governance (CG Index) on the implementation of the principles of corporate governance code by listed companies in Romania. Thus the main research tool is a corporate governance index, calculated based on the framework proposed by the authors, and the results of the study consist of scores for each item or principle CG by calculating corporate governance index (CG Index) for the 55 listed companies in Romania. The results show that the degree of compliance with the Code of Corporate Governance of BSE is achieved at a rate of 70.6%, the lowest score is based on a result of 21.1% and the highest is 92.3% [ABSTRACT FROM AUTHOR]

Decision making process within contemporary organisations involves different views expressed by individuals recognized through a multifarious education, wide-ranging and in-depth experience, alongside extensive perspectives. Through nominating women in top management positions is emphasized the solution towards difficult problems faced by corporations due to their specific skills. Thereby, gender diversity leads to a better decision making system. The aim of this research consists in the examination of the influence and causal relationship between the percentage of women on boards of directors and the value of companies listed on the Bucharest Stock Exchange over 2007-2011. Therewith, we took into account CEO gender diversity by employing CEO gender, as well CEO geographic diversity by considering CEO state of residence. The value of companies was proxied through industry-adjusted Tobin's Q ratio. By estimating multivariate regression models for panel data, unbalanced, we found a percentage of women representation on boards of at least 22.50 percent in order to positively influence firm value. Besides, the nonlinear relationship previously mentioned was not statistically significant when we estimated a fixed-effects model. Furthermore, our results provide support for a positive influence of CEO gender and CEO state of residence on firm value when we estimated fixed-effects models, although the relationship was not statistically significant when we estimated models without cross-sectional effects. The empirical research of causality showed the lack of Granger causality regarding several explored lags. [ABSTRACT FROM AUTHOR]

Taxation convergence in the European Union has always been a heatedly debated issue, and it has constantly resurfaced to the limelight as more and more fiscal directive proposals are being discussed. The current study is an analysis of the evolution of taxation convergence tendencies within the European Union in recent years, using sigma-convergence and cluster analysis. Our goal is to analyze the fiscal convergence trends in the context of European Union enlargement over the last two decades. [ABSTRACT FROM AUTHOR]

The financial world crisis has impacted all the areas of Romania's public policy, including taxation. The current study aims to analyze the effects of the global economic crisis on the evolution Romania's tax burden by using statistical tools and focusing on the percentage of tax revenues in the GDP, the structure of the tax mix and the effective tax burden on consumption and labour. [ABSTRACT FROM AUTHOR]

There are many factors that influence managers' confidence in the business environment. Of all these factors of influence, the impact of taxation on business performance is the subject of the present study. To analyze how taxation affects the business confidence index, we used data collected for OECD European countries in estimating two different regression models. Our results will show that managers take changes in taxation into account when they anticipate the evolution of the business environment. [ABSTRACT FROM AUTHOR]

The purpose of this paper represents the foundation of a score function, effective in the forecast of bankruptcy risk for companies in the Romanian economy. In order to achieve bankrupt / non-bankrupt discrimination in the econometric model, we have used relevant indicators regarding liquidity, indebtment and profitability. Based on the financial information for 2010, on a sample of 70 enterprises, we have developed an econometric model for the forecast of bankruptcy risk, subsequently tested on a new sample of 30 enterprises. The results achieved can form a landmark for Romanian enterprises in substantiating decisions, with the purpose to avoid financial failure. [ABSTRACT FROM AUTHOR]

Fiscal convergence has always represented one of the objectives of decision factors from EU member states. An important step in this direction was recently made, through signing of the Fiscal Stability pact by 25 member states. Thus, clear limitations were established for the budget deficit, which signing states engaged to respect. This study shows the mreasure in which budget deficit and public debt influence the fiscal pressure, at the overall level of the EU. During a period in which more states of the EU try to keep the budget deficit under the most strict possible control, we do consider that this study ist o be welcomed. [ABSTRACT FROM AUTHOR]

The DuPont analysis system is based on decomposing the profitability ratio in factors of influence. This paper describes the factorial analysis of profitability based on the DuPont system. Significant importance is given to the impact on various indicators on the shares value and profitability. [ABSTRACT FROM AUTHOR]

The issue of the impact of profit taxation on enterprise's financial structure is approached from diverse perspectives in the dedicated national as well as international literature. Starting from the results of the studies in the field, the current paper aims to catch the influence that financial structure decisions exert upon profit tax. Regarding this aspect, the paper presents a financial-fiscal study that highlights the savings in profit tax that result from deducting interest expenses related to debt contracted by companies for financing their activities. [ABSTRACT FROM AUTHOR]