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Increasing Financial Audit Quality Using A New Model To Estimate Financial Performance

Author

Listed:
  • Iulian Viorel Brasoveanu

    (Bucharest University of Economic Studies,)

  • Florin Dobre

    (Bucharest University of Economic Studies,)

  • Laura Brad

    (Bucharest University of Economic Studies,)

Abstract

Establishing the performance of the companies is one of the facts that influence the shareholders’ attitude. As a fact, a framing category could further affect the evolution of the company and could influence the audit opinion. As creditworthiness should be given to audit, a performance function score was computed for the companies listed on the Bucharest Stock Exchange. Four performance categories were established, while the validation was done using not only companies from RASDAQ, which is Romania’s secondary market, but also their next stock price evolution. The model developed is trustworthy, as more than 70% of the companies were properly framed.

Suggested Citation

  • Iulian Viorel Brasoveanu & Florin Dobre & Laura Brad, 2014. "Increasing Financial Audit Quality Using A New Model To Estimate Financial Performance," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 88-107, October.
    • Handle: RePEc:rjr:romjef:v::y:2014:i:3:p:88-107
    as

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    References listed on IDEAS

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    Cited by:

    1. BEBEȘELEA, Mihaela & PATACHE, Laura, 2019. "Exploring The Relationship Between Accounting And Statistics," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(3), pages 55-64.
    2. Radu Ciobanu & Mircea Bahna, 2015. "The Social, Cultural and Political Factors that Influence the Level of Mergers and Acquisitions," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(3), pages 33-41, July.

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    More about this item

    Keywords

    Zscores; Bucharest Stock Exchange; going concern; RASDAQ; financial analysis;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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