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Assessing The Financial Sustainability Of Energy Sector In Romania Under Crisis Conditions

Author

Listed:
  • Simona-Maria Brînzaru

    (Stefan cel Mare University, Suceava, Romania)

  • Veronica Grosu

    (Stefan cel Mare University, Suceava, Romania)

  • Sorinel-ToderaÈ™ Siretean

    (Stefan cel Mare University, Suceava, Romania)

  • Cipriana Mihai

    (Stefan cel Mare University, Suceava, Romania)

  • Ioana Andrioaia

    (Stefan cel Mare University, Suceava, Romania)

Abstract

Improving the financial sustainability of Romanian electricity generating companies can be achieved by adopting a set of strategic measures. These measures may include: investments in more efficient and cleaner technologies, such as natural gas power plants or renewable energy sources. These technologies could reduce production costs and help reduce greenhouse gas emissions. In this context, the aim of this paper is to identify the determinants of increased financial sustainability of electricity generating companies in Romania. In order to achieve the proposed goal, the following objectives have been formulated: O1 - Analysis of efficiency indicators with influence on increasing or reducing financial sustainability; O2 - Identification and analysis of risk indicators influencing growth or reduction of financial sustainability and O3 - Analysis of performance indicators influencing growth or reduction of financial sustainability. The research methodology is based on the sample analysed consisting of 150 companies operating in the power generation sector. The results of the research consist in the development of a model for the assessment of financial sustainability of electricity generating companies in Romania under crisis conditions. The usefulness of these results is reflected in the outline of a reference framework for monitoring and quantifying the financial sustainability of electricity generating companies in relation to reported economic and financial indicators.

Suggested Citation

  • Simona-Maria Brînzaru & Veronica Grosu & Sorinel-ToderaÈ™ Siretean & Cipriana Mihai & Ioana Andrioaia, 2023. "Assessing The Financial Sustainability Of Energy Sector In Romania Under Crisis Conditions," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 11(2), pages 94-99, June.
    • Handle: RePEc:scm:ejafbu:v:11:y:2023:i:2:p:94-99
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    References listed on IDEAS

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    1. Judita Adamkaite & Dalia Streimikiene & Kristina Rudzioniene, 2023. "The impact of social responsibility on corporate financial performance in the energy sector: Evidence from Lithuania," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 91-104, January.
    2. Veronica GROSU & Ioana ANDRIOAIA & Iulian DASCALU, 2022. "Analysis Of The Economic Performance And Sustainability Of Businesses Operating In Electricity Production And Distribution Industry," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(1), pages 96-104, February.
    3. Jing Lu & Kathleen Rodenburg & Lianne Foti & Ann Pegoraro, 2022. "Are firms with better sustainability performance more resilient during crises?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3354-3370, November.
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