Mocanu Mihaela, Grose Christos and Kargidis Theodoros
Operational risk has been acknowledged as a major source of material failures in financial firms. Despite the increased concern of financial institutions and their stakeholders on this topic, the literature that deals specifically with the operational risk disclosure in the banking system is scarce. The present research investigates the readability in transparency reports of Romanian banks, and focuses in particular on the operational risk disclosures. The sample consists of 13 commercial banks operating in Romania in 2017. A concise transparency report is characterized by clarity in the expression of concepts, usage of as few words as possible, limited use of technical terms and avoidance of highly generic disclosures. Drawing upon prior research, we expect that banks with lower levels of performance are foggier (i.e. less concise) in order to improve the image resulting from their transparency reports. Additionally, it is expected that the longer an entity has been established, the higher the quality of disclosures, thus the transparency reports of older banks are more concise compared to the recently established banks. Moreover, we posit that larger banks are more likely to provide more readable reports. The research is part of the larger debate related to disclosure and its various impacts on both the recipient and the giver of information. The main contribution is the innovative approach consisting in the textual analysis of transparency risk reports. To the best of our knowledge, we are not aware of any study that examined conciseness in the setting of operational risk disclosure by banks.
The three-dimensionality of sustainability links the following fundamental areas: ecology, economy and society. Sustainability controlling focuses on a three-dimensional sustainability-oriented system of corporate goals, which equally includes economic, environmental and social goals. Therefore, the objective of sustainability controlling is the comprehensive support of sustainability management, namely formulating and implementing a corporate policy that comprehensively covers all three dimensions of sustainability – people, planet, and profit. One of the pillars in defining sustainability is the environmental pillar. Among the three pillars of sustainability, the environmental dimension is the one that receives constant attention from academia, organizations and policy-makers. Governments, international agreements, society and various stakeholders pressure organizations to improve their behavior towards the natural environment. Thus, authors chose to focus in the present research on green controlling. There is a variety of terms used to name “green controlling” such as environmental controlling, ecologically oriented controlling, ecological controlling, eco-controlling etc. The concept is widely spread and accepted in German-speaking countries, whereas the Anglo-American scholarly community conceptualizes “environmental management control systems” or “environmental management accounting”. The authors’ objective is first to clearly define the concept of “green controlling” and secondly, to thoroughly state the most relevant instruments of green controlling for each of the following areas of responsibility: supply area, disposal area, environment area, adaptation area and coordination area. The importance of the presented research lies in the need of both controllers and managers for a clear set of easily and efficiently applicable instruments of green controlling, in the lack of which any theoretical debate lacks on relevance.
Monica Mihaela Maer Matei, Cristina Mocanu and Ana-Maria Zamfir
Education is a key factor that can contribute to the economic growth, supporting the social mobility and the living standard improvement. Both from the scientific point of view, as well as from the policy making process point of view, it is essential to know how individuals choose their educational path, in order to understand what is and can be the role of different educational routes in ensuring social mobility and improving standard of living. In this article we explore the factors that explain attitudes and decisions of individuals for vocational vs. general education in Romania. Our analysis is based on data from a national survey among adult Romanian population. Attitudes regarding the choice of vocational vs. general education are analysed by employing decision trees method in order to assess the extent to which vocational education is considered a valuable education path or an educational alternative for those with lower socio-economic background.
Buda Daniel, Razvan Hoinaru, Mihaela Mocanu and Aureliana-Geta Roman
Titles on IAS 41 are not very common in the literature and in this sense there is a limited understanding of the standard and the agri-business, especially when connected with accounting and sustainability. Far too many scholars when taking into consideration natural capital, place too much emphasis on abiotic products (wind, solar, etc) which have a different economic behaviour than the biotic ones (biological assets). The topic of IAS 41 is important, as agriculture is one of the strategic sectors for human living and it needs to be accounted for in careful manner. Our article connects accounting with agriculture, sustainability and non-financial reporting for an integrated perspective. There are certain intrinsic challenges that IAS 41 presents, especially when dealing with FVA, but there are also greater needs for materiality in the sustainable agricultural development in the EU legislation. Authors think that there is place for improvement whiten the standards and the future of EU farming should not leave accounting behind, making a call for a more integrated approach and understanding.
Innovation is essential for European competitiveness and provides key inputs for developing business models that are conducive for a more sustainable economy. Recent evidences show that businesses have increased the management attention and investments they’re dedicating to sustainability. This paper aims to identify the most important drivers supporting companies to develop innovation activities oriented towards making the business models more sustainable. We explore microdata from the 2016 Innobarometer “EU Business Innovation Trends” (Flash Eurobarometer 433), covering 14,112 companies from 30 countries. Using statistical classification methods, we identify the most important factors that are related to innovation activities that have potential to shape the efficiency of raw materials usage and the environmental protection. Special focus is given to companies’ investments in training, software development, research and development, company branding, design of products and services, organization or business process improvements and acquisition of machines, equipment, software or licenses. Also, our analysis highlights the skills that are needed the most by companies in order to support their innovation activities targeting sustainability. Our results are useful for better understanding the attention that is given to sustainability by innovative companies and which are the main factors that boost innovation dedicated to sustainability.
Monica Dumitrașcu, Mihaela Lungu, Sorin Liviu Ștefănescu, Victoria Mocanu, Gabi Mirela Matei and Rodica Lazăr
As low-input environmentally friendly agricultural practices are currently associated with the delivery of a wide range of public goods and socioeconomic benefits, the strategy of European Union in mitigating climate change effects, protecting environment and ensuring public health has, among others, focused around preserving the High Natural Value (HNV) areas. About a quarter of the land in Romania is potentially covered by HNV farming and eligible for associated support payments, mostly along the chain of the Carpathian Mountains. Since soil systematic data on HNV area are scarce, recent research developments currently undertake to build up a first national HNV soil data base.
Soil fertility state in a HNV payment eligible area of south-eastern Transylvania was studied in seven in-depth dug profiles and seven additional shallow dug profiles. Soil samples were taken by genetic horizons as well as agrochemical samples from the upper soil layers (0-20 cm). Physical, chemical, and microbiological analyses revealed that the studied soils have a medium clayey loamy texture, good fertility and are subject to an adequate HNV management in the area, as the analytical values mostly range in favorable intervals for plant growth and nutrition. Thus, soil reaction is moderately acid up to slightly alkaline in the presence of carbonates, the soil organic matter, generally well mineralized, reaches fair levels and the high and very high cation exchange capacity ensure good conditions for plants growth and nutrition whilst nitrogen and potassium supply is adequate. Phosphorus is the only element in short supply – a situation often encountered in Romania unfertilized soils. Soil bulk density and total porosity are also favorable for root growth and spreading and plant nutrition. Microorganisms’ activity is diverse and is also adequate for plant nutrition.