The Assumption of Going Concern for Quoted Entities – Science or Art for Predictive Information in Governance Decisions
Author:
Lecturer Flavia STOIAN, Ph.D.; Lecturer Geanina-Gabriela TUDOSE, Ph.D.; Grazia-Oana PETROIANU, Ph.D. Student; Daniela Nicoleta MEDINŢU, Ph.D. Student
JEL:
M41, M42, M49
DOI:
Keywords:
predictive, informational transparency, going concern, financial risk, bankruptcy risk, corporate governance, governance code
Abstract:
The transparency of financial information is an indispensible component of competition on the capital market. The financial information is relevant if the governance may estimate predictive, forecasting information for the perenniality of that entity, relying on the present information. Predictions must be achieved so that they may be confirmed. The purpose of the paper is to demonstrate how governance may come quite closer to the assumption of going concern and anticipate much earlier the bankruptcy risk, on the basis of a good corporation governance. The theoretical-scientific support of the paper is given by the research regarding the necessity of going concern, an element of corporate governance and implicitly of risk management. In order to make the research, there have been used information and documentation from speciality literature and also from the evolution of Romanian economic reality. Starting from the evolution of agricultural sector and from the risk of maintaining/developing a business going on, an agricultural link is in view, with the aim to discover the inner reserves to be used in order to obtain and observe the „going concern” principle, the essence of an efficient, economic, social business, a triad of a sustainable development. In order to achieve the proposed objective, there has been used a methodology of fundamental research as regards risk characterization - a key element foe achieving the aim of corporate governance. \r\n