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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Volume 14, Number 1, Year 2026
| 2. THE ROLE OF EXPENDITURES ON INSURANCE AND SOCIAL ASSISTANCE IN REDUCING THE LEVEL OF SCHOOL DROPOUT IN ROMANIA | 
Download | | Author(s): Andrei Tarata, Cristinel Ichim | | DOI: 10.4316/EJAFB.2026.14101 | | Abstract: The paper analyzes the evolution and specific features of public expenditures allocated to insurance and social assistance in Romania during the period 2020-2023, in a context marked by economic instability and increasing pressure on the public budget. The main objective of the research is to highlight the role of these expenditures in reducing school dropout levels, by supporting vulnerable families and facilitating access to education. The study is based on documentary analysis, the processing of official statistical data, and the interpretation of the dynamics and structure of expenditures, correlated with the evolution of indicators related to school dropout. The results indicate a clear upward trend in social protection expenditures, with significant effects on reducing the risk of early school leaving, emphasizing the importance of state intervention in supporting education and social cohesion. | | Keywords: Public Expenditures; Social Insurance; Social Assistance; School Dropout; Finance. |
| 3. AI-DRIVEN PREDICTIVE MAINTENANCE IN COMMERCIAL ENTERPRISE ASSET MANAGEMENT: IMPLEMENTATION FRAMEWORKS, PERFORMANCE OUTCOMES, AND CRITICAL SUCCESS FACTORS |
Download | | Author(s): Konon Bagrii, Nataliia Skrypnyk, Ivanna Kostyniuk | | DOI: 10.4316/EJAFB.2026.14102 | | Abstract: Commercial enterprises depend on the reliable performance of physical and digital assets across diverse industries, yet conventional maintenance strategies - whether reactive or calendar-based - consistently fail to exploit the rich operational data that modern infrastructure continuously generates. This study investigates the application of artificial intelligence (AI) and machine learning (ML) to enterprise asset management, with a particular focus on predictive maintenance and asset lifecycle optimization. A mixed-methods research design is adopted, integrating systematic synthesis of peer-reviewed literature and industry documentation with quantitative analysis of verified performance data drawn from manufacturing, energy, transportation, telecommunications, and oil and gas sectors. The findings confirm that ML-enabled predictive maintenance yields failure-prediction accuracy in the range of 85-95% (average: 90%), reduces unplanned downtime by 30-70% (average: 50%), and lowers maintenance expenditure by 10-40% (average: 25%). Equipment lifespan is extended by an average of 20%, whilst enterprises with mature AI implementations record a three-year return on investment of 4.3:1. Notwithstanding these gains, the study finds that only approximately 60% of implementations deliver anticipated benefits, highlighting the decisive role of non-technical factors. Analysis across sectors and documented deployments identifies three interdependent clusters of critical success factors: technical readiness (sensor infrastructure quality, data governance, and model selection), organizational capability (leadership commitment, cross-functional collaboration, and workforce development), and strategic discipline (phased rollout, clearly defined performance metrics, and realistic return expectations). The study advances a layered implementation framework that integrates these dimensions and provides a structured pathway for enterprises at varying stages of AI adoption. By drawing on evidence from multiple commercial sectors rather than a single industry, the research extends the theoretical understanding of technology-mediated asset management and offers practitioners a grounded basis for investment decisions, operational strategy, and sustainable value creation in an increasingly data-driven economy. | | Keywords: Artificial Intelligence; Machine Learning; Predictive Maintenance; Asset Optimization; Enterprise Asset Management; Digital Transformation; Operational Efficiency. |
| 4. FINANCIAL PERFORMANCE AND ESG SUSTAINABILITY IN THE PHARMACEUTICAL INDUSTRY |
Download | | Author(s): Florin Boghean, Denisa Vitelaru | | DOI: 10.4316/EJAFB.2026.14103 | | Abstract: The pharmaceutical industry is characterized by high levels of investment in research and development, a strict regulatory framework, and a significant social impact, factors that require a comprehensive approach to organizational performance. In this context, performance can no longer be assessed solely through traditional financial indicators, but must be analyzed in an integrated manner that also incorporates non-financial dimensions related to sustainability and corporate governance. The aim of this article is to analyze financial performance and Environmental, Social, and Governanc (ESG) sustainability in the pharmaceutical industry, highlighting how these dimensions are addressed in specialized literature and reflected in corporate reporting practices. The research methodology is based on a qualitative and synthetic documentary analysis of relevant academic literature, regulatory documents, and publicly available sustainability reports. The analysis focuses on clarifying key theoretical concepts related to performance management, identifying models and indicators used in the evaluation of financial and non-financial performance, and examining the role of ESG pillars and reporting practices in the pharmaceutical sector. The findings indicate that the integration of ESG criteria into performance evaluation represents an increasingly important trend in the pharmaceutical industry, driven by regulatory developments and growing stakeholder expectations. Performance is thus conceptualized as a multidimensional construct, in which economic efficiency is closely linked to environmental responsibility, social impact, and effective corporate governance. The article emphasizes the importance of adopting integrated and sector-specific performance management frameworks tailored to the particularities of the pharmaceutical industry. | | Keywords: Performance Management; Financial Performance; ESG Sustainability; Pharmaceutical Industry; Non-financial Performance. |
| 5. THE IMPACT OF NON-REPAYABLE FINANCING ON THE PROFITABILITY OF ENTITIES IN THE MANUFACTURING INDUSTRY |
Download | | Author(s): Violeta Codrean, Svetlana Mihaila, Veronica Grosu | | DOI: 10.4316/EJAFB.2026.14104 | | Abstract: Non-repayable financing, in the form of grants, is an important strategic tool for supporting the development and competitiveness of small and medium-sized enterprises, especially in the manufacturing sector. This paper analyzes the impact of non-repayable financial support on the profitability of beneficiary entities in the Republic of Moldova. The study combines a theoretical analysis of the concepts of financial performance and profitability with an applied approach based on financial data for a sample of 10 entities in the manufacturing industry that benefited, in 2023, from the maximum grant under a government support program managed by Public Institution "Organization for the Development of Entrepreneurship" - IP ODA. Methodologically, the research uses descriptive analysis, the t-test for paired samples, and the simple linear regression model to assess the relationship between non-repayable financing and the profitability of beneficiary entities. The results indicate that grants contribute to improving financial performance by increasing the asset base, strengthening equity, and increasing profitability. However, the effects depend on the strategic alignment of investments, managerial capacity, and the efficient use of resources. The paper highlights the importance of strategic planning and effective management for the optimal use of non-repayable financing. | | Keywords: Non-repayable Funding; Grant; Financial Performance; Profitability; Manufacturing Industry. |
| 6. FINANCIAL REPORTING IN THE REPUBLIC OF MOLDOVA - ASPECTS AND CHARACTERISTICS |
Download | | Author(s): Daniela Potorac, Liliana Lazari | | DOI: 10.4316/EJAFB.2026.14105 | | Abstract: This paper examines the financial reporting framework in the Republic of Moldova and its role in communicating reliable, comparable information to stakeholders. Using a normative and comparative approach, the study reviews the national regulatory environment and contrasts it with key International Financial Reporting Standards (IFRS) reporting requirements. The analysis highlights Moldova's dual reporting model: public-interest entities apply IFRS, while most other entities report under NAS aligned with European principles. Although the two frameworks share a common structure of financial statements (financial reports), differences remain in the depth of disclosure, flexibility of presentation, and the influence of tax legislation on accounting policies. The choice of reporting requirements and the type and classification of statements depend on the entity's size, category, and informational needs, resulting in differentiated reporting that better fits each entity. The paper also identifies current challenges - partial convergence between National Accounting Standards (NAS) and IFRS, uneven implementation capacity, limited digitalization, and the emerging need to integrate sustainability, ESG reporting - and outlines priorities for modernization and improved transparency. | | Keywords: Challenges And Issues In Financial Reporting; Classification Of Financial Statements; Financial Reporting; Financial Statements; IFRS; NAS; Regulatory Framework. |
| 7. THE IMPLEMENTATION OF IFRS 8 AND THE EFFECTS ON THE QUALITY OF FINANCIAL REPORTING |
Download | | Author(s): Ibtihal Al-taweel, Elena Hlaciuc | | DOI: 10.4316/EJAFB.2026.14106 | | Abstract: This study examines the long-run implications of IFRS 8 Operating Segments for segment disclosure and operating performance in EU-listed non-financial firms. Using a balanced panel of 60 firms over 2005-2023, we estimate firm fixed-effects models with two-way clustered standard errors to assess within-firm changes around the mandatory adoption of IFRS 8 in 2009. Disclosure outcomes are measured using three distinct dimensions: checklist-based disclosure completeness (Quality of Disclosure Index, QDI), geographic disaggregation (Geographical Disclosure Diversity, GeoDiv), and segment-structure stability (Consistency). We find a statistically significant post-adoption increase in QDI and GeoDiv, while Consistency does not improve systematically. Performance tests show no robust association between QDI and operating cash-flow margins, and GeoDiv shows only marginal evidence of a positive association with OCF margin. Sector interaction tests provide no evidence of systematic heterogeneity across major EU industries. Overall, the results suggest that IFRS 8 strengthened the informational environment primarily through improved geographic disclosures, highlighting that economically salient disaggregation matters more than formal checklist compliance alone. | | Keywords: IFRS 8; Operating Segments; Disclosure Quality; Geographic Disclosure; Operating Performance; European Union. |
| 8. INTERNAL AUDIT IN THE EUROPEAN ENERGY SECTOR: EVIDENCE AND COMPETENCY IMPLICATIONS |
Download | | Author(s): Svetlana Mihaila, Cristina Gabriela Cosmulese, Maria - Alessia Feleaga | | DOI: 10.4316/EJAFB.2026.14107 | | Abstract: The European energy sector operates in a context characterized by intensive regulation, large capital investments, accelerated energy transition, and increasing technological risks, including cyber risks specific to critical infrastructure. In this context, internal audit plays the role of providing independent assurance and advisory services regarding governance, risk management, and internal control. The paper proposes a comparative case study between Enel S.p.A. and Iberdrola S.A., based on content analysis of official public documents for the years 2024 and 2025. The theoretical framework integrates literature on internal audit effectiveness, the independence of the internal audit function, professional internal audit standards, and specific characteristics of the energy sector regarding cybersecurity and critical infrastructure. The results highlight convergences in governance architecture (board/committee-level oversight), risk-based planning, and quality assurance and improvement programs (QAIP). At the same time, differences are identified in the way digital transformation is reflected in public reporting. The paper proposes a matrix linking internal audit dimensions and competencies, anchored in documentary evidence, and formulates practical implications for the development of internal auditor competencies in the energy sector. | | Keywords: Internal Audit; Energy Sector; Corporate Governance; Risk Management; Competencies; Cybersecurity. |
| 9. DECENTRALIZATION OF TERRITORIAL COMMUNITIES IN UKRAINE ON THE PATH TO EUROPEAN INTEGRATION |
Download | | Author(s): Iryna Mustetsa, Polina Orlova | | DOI: 10.4316/EJAFB.2026.14108 | | Abstract: The article explores the significance and role of decentralization of territorial communities under wartime conditions. Particular attention is paid to the analysis of how the transfer of administrative powers to the local level contributes to strengthening the resilience of the public administration system, enhancing social cohesion, mobilizing local resources, and ensuring effective mechanisms for post-war recovery. The study substantiates that decentralization serves as an important instrument for strengthening national security and creating favorable conditions for the sustainable development of the state in the post-war period. Ukraine has faced significant global challenges in recent years, including the pandemic that began in 2019 and the Russo-Ukrainian War that has continued since February 2022. These events have resulted in considerable human losses, large-scale population displacement, destruction of critical and social infrastructure, temporary occupation of certain territories, and a decline in citizens' sources of income. As a consequence, the socio-economic situation of the population has deteriorated, while the burden on the national social protection system has substantially increased. In such circumstances, the state must intensify efforts aimed at ensuring both physical and social security for its citizens. Achieving socio-economic stability requires the revision of existing approaches to regulating economic processes and shaping social relations. These approaches should be based on the adaptation of public authorities and local self-government institutions to contemporary challenges and to the evolving conditions in which territorial communities operate within the framework of Ukraine's European integration process. The relevance of decentralization becomes particularly evident in the context of Ukraine's post-war reconstruction. Territorial communities are expected to play a crucial role in rebuilding damaged infrastructure, providing social assistance to affected populations, and creating conditions for sustainable economic growth. Strengthening local self-government institutions will contribute to more effective territorial development and support the formation of a resilient and competitive national economy. | | Keywords: Decentralization; Territorial Communities; Budgeting, Public Administration; Types Of Decentralization; Martial Law; Finances. |
| 10. ASSESSING FISCAL PREDICTABILITY IN ROMANIA: EMPIRICAL EVIDENCE FROM A SURVEY OF FISCAL AND ECONOMIC SPECIALISTS |
Download | | Author(s): Antoanela Savescu (itco), Veronica Grosu, Cristina Gabriela Cosmulese | | DOI: 10.4316/EJAFB.2026.14109 | | Abstract: The Romanian tax environment operates in a context characterized by frequent legislative changes, increasing administrative complexity, accelerated tax digitalization, and persistent concerns regarding tax predictability. In this context, the study assesses tax predictability in Romania based on evidence from a survey of tax and economic specialists, focusing on the perceived effects of legislative instability during 2020-2024. The research employs a quantitative approach, utilizing a questionnaire administered to 146 respondents, including certified public accountants, accounting experts, tax consultants, auditors, managers, and administrators. The theoretical framework incorporates literature on legislative instability, tax compliance, institutional trust, fiscal legitimacy, the investment climate, and the macroeconomic effects of fiscal policy. The results highlight a predominantly critical perception of fiscal predictability, reflected in concerns regarding frequent tax changes, increased compliance costs, administrative burden, and the reduced ability of companies to plan medium- and long-term decisions. Fiscal digitalization is viewed with mixed feelings: while tools such as e-Invoice, e-VAT, e-Transport, and SAF-T may improve efficiency and transparency, their rapid implementation created additional pressure for companies with limited resources. The study formulates practical implications for strengthening fiscal stability, improving institutional communication, and supporting companies in the adaptation process. | | Keywords: Fiscal Predictability; Legislative Instability; Business Environment; Fiscal And Economic Experts. |
| 11. CONCEPTUAL AND METHODOLOGICAL CHALLENGES IN THE QUANTIFICATION OF INTELLECTUAL CAPITAL: A FUNDAMENTAL APPROACH |
Download | | Author(s): Denisia Nemtoc, Marian Socoliuc, Mihaela Socoliuc | | DOI: 10.4316/EJAFB.2026.14110 | | Abstract: The contribution of intangible resources, particularly intellectual capital (IC), to business performance remains an extremely important and timely topic in the specialized literature, despite the existence of a significant body of work on this subject. In this context, the main challenge for companies lies in identifying the most accurate methods for evaluating it. Thus, the present research is fundamental, taking the form of a comprehensive review of the specialized literature, with the aim of identifying the contribution and utility of IC in creating organizational performance, as well as the gaps and difficulties in identifying standardized methods for evaluating IC that can be applied. The results of our research reveal, on the one hand, that no standard method for evaluating IC has yet been identified in the specialized literature that would incorporate all the determining factors of a concrete assessment, and, on the other hand, that the proposed calculation methods still have limitations in terms of applicability and interpretation. We believe that this research is useful both to the academic community, by expanding the body of scientific literature on this topic, and to the management of business organizations, which can identify the contribution of IC components to organizational success and, consequently, base their managerial decisions on this knowledge. | | Keywords: Organizational Performance; Methods For Evaluating Intellectual Capital; Limitations Of Intellectual Capital Evaluation. |
| 12. LABOR MARKET DYNAMICS IN ROMANIA AND THE ROLE OF VOCATIONAL RETRAINING ECOSYSTEMS IN JOB CREATION AND INCREASING COMPETITIVENESS |
Download | | Author(s): Irina - Stefana Cibotariu, Ancuta - Anisia Chelba | | DOI: 10.4316/EJAFB.2026.14111 | | Abstract: The Romanian labor market faces multiple challenges stemming from skills shortages, demographic changes, digitalization, and the rapid economic transformations of recent years. In this context, professional retraining and skills development are becoming essential for supporting employment and boosting economic competitiveness. The purpose of this study is to analyze the main indicators of the Romanian labor market and to highlight the role of professional retraining ecosystems in reducing structural imbalances and creating jobs. The research methodology is based on a descriptive and exploratory approach, utilizing comparative and interpretive analysis of relevant labor market indicators, such as the employment rate, labor force participation rate, unemployment rate, hours worked, and the labor force. The data used are drawn from official national and international sources, such as Eurostat, the World Bank, and the National Institute of Statistics. The research findings highlight a moderately positive trend in labor market indicators for the period 2023-2028 but also point to the persistence of structural vulnerabilities related to skills shortages and low labor market participation. The analysis shows that developing an integrated ecosystem for professional retraining can help increase employment and adapt the workforce to the demands of a digital and sustainable economy. | | Keywords: Labor Market; Professional Retraining; Employment; Digital Skills; Economic Competitiveness; Romania. |
| 13. CYBERSECURITY AND COMMUNICATIONS: MODERN REALITIES |
Download | | Author(s): Valeriia Peniuk, Vasyl Havryliuk | | DOI: 10.4316/EJAFB.2026.14112 | | Abstract: The article is devoted to the study that cybersecurity and effective communication have become critically important components of the security and stable functioning of not only governmental structures, but also of business, education, and everyday life. Cybersecurity and communication are closely interconnected, as any exchange of information through digital channels requires protection. Almost daily, companies interact with and attempt to better understand their consumers - learning their personal data, preferences, purchasing frequency, and more - thereby actively collecting personal information. This article explores the relevance of digital threats in the context of business-to-consumer communication. It highlights the specific nature of consumer trust in the digital environment and outlines the components that constitute trust in this space. The concept and prerequisites of cyber threats in the modern world are defined. The study demonstrates why cybersecurity forms the foundation of high-quality communication and long-term relationships with clients in a digital setting, and shows how it influences trust, loyalty, and the reputation of a brand or enterprise. The concept of a "bot farm" is described, and it is recognized as a significant and dangerous threat to modern consumer communications. The article provides examples of the types of information that must be protected when using various communication channels with consumers and clients, including email marketing, social media surveys, messaging platforms, data collection via websites, chatbots, and more. It is emphasized that effective communication - even in the digital realm - enables the formation of a valuable asset: client databases. The article underlines the importance of protecting these databases during the data collection process and argues that database formation is only the initial stage of ensuring digital security. | | Keywords: Cybersecurity; Communication; Trust; Consumer; Digital Environment. |
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