Some Aspects Regarding the Impact of Foreign Direct Investments on Audited Entities

Author:Associate Professor Adrian GROȘANU, Ph.D.; Univ. Lecturer Sorin Romulus BERINDE, Ph.D.; Associate Professor Paula Ramona RĂCHIȘAN, Ph.D.

JEL:M40, M42, M48

DOI:

Keywords:foreign direct investments (FDI), Romanian capital, audited entities, performance, corporate governance, analysis, Cluj County

Abstract:
In this paper there was conducted a study on the impact foreign direct investments of Cluj County have on the performance of the audited entities in 2008-2011 operating in conditions of continuity in October 2012, according to data published by the Trade Register Office of Cluj County. The authors identified a total of 304 economic entities that meet the above conditions but the study included only 197, the ones that have published each year during 2008-2011 a summary of the financial statements. The analysis revealed that about 15% of surveyed entities are joint ventures capital or solely foreign capital and the rest of them have only Romanian capital. Although their share in total is relatively small, in terms of value their importance for the economy of Cluj County is evident. Throughout the paper the authors made a comparative analysis on activity fields (trade, production and service) of the two categories of entities and they obtained results that essentially show that where there is foreign ownership is recorded on average a better use of resources available to those entities. Regarding the entities owned exclusively by Romanian capital, the authors consider that they have begun to learn the lessons of the economic and financial crisis by increasing the human and material resource efficiency. The fact that these entities are audited reflects, on the one hand, that they are entities important from economic point of view and, on the other hand, the published data have a high trust level and therefore they are relevant.\r\n

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