ROMANIA MINISTRY OF EDUCATION AND SCIENTIFIC RESEARCH

THE ANNALS OF THE

UNIVERSITY OF ORADEA

ECONOMIC SCIENCES TOM XXV

1st ISSUE / JULY 2016

ISSN 1222-569X (printed format) ISSN 1582-5450 (electronic format)

TABLE OF CONTENTS

SECTION: INTERNATIONAL BUSINESS, EUROPEAN INTEGRATION, FOREIGN LANGUAGES AND BUSINESS ENVIRONMENT 12 SUB-SECTION: INTERNATIONAL BUSINESS ................................................................. 12

THE EVOLUTION OF FOREIGN DIRECT INVESMENT THEORIES: HOW CAN INSTUTIONS RELATE? .................................................................................................................................... 13

ZSUZSANNA BÉNYEI .................................................................................................................. 13 FORTRESS EUROPE BREACHED: POLITICAL AND ECONOMIC IMPACT OF THE RECENT REFUGEE CRISIS ON EUROPEAN STATES............................................................................ 20

ADRIAN-IOAN DAMOC ................................................................................................................ 20 AGEING WORKFORCE IN ROMANIA – PERSPECTIVES OF AGEING WORKFORCE POLICIES IN EAST EUROPEAN COUNTRIES - ....................................................................... 30

RADU FLOREA .......................................................................................................................... 30 ECONOMIC IMPLICATIONS OF THE NEW MIGRATION WAVE IN EUROPE ......................... 36

IRINA IONESCU; LARISA LUCHIAN ................................................................................................ 36 THE DECREASE OF THE WORLD CRISIS EFFECTS ON THE BUSINESS ENVIRONMENT . 46

CAMELIA – ELENA IVAN .............................................................................................................. 46 AN ANALYSIS ON CHINA’S ECONOMICAL GROWTH PERSPECTIVES ................................ 53

LARISA LUCHIAN (MOCANU), IRINA IONESCU ................................................................................ 53 CHALLENGES IN TRANSATLANTIC RELATIONS .................................................................... 67

SÁNDOR NAGY.......................................................................................................................... 67 SUB-SECTION: EU SUSTAINABLE ECONOMIC DEVELOPMENT AND COMPETITIVENESS ........................................................................................................... 73

THE INFLUENCE OF THE ACCESSIBILITY GRADE UPON THE TECHNICAL-ECONOMICAL ESTIMATES FOR THE WOOD EXPLOITATION ........................................................................ 75

TIMOFTE ADRIAN IOAN, TIMOFTE CLAUDIA SIMONA CLEOPATRA ..................................................... 75 THE EU, APEC AND ASEAN; A COMPARISON IN THE FRAMEWORK OF ECONOMIC INTEGRATION............................................................................................................................ 84

İSMET ATEŞ, ORHAN ŞANLI ..................................................................................................... 84 INFLUENCES ON THE QUANTUM OF DAMAGES AWARDED AT ICSID ................................ 94

MIHAI BERINDE, DANA PETRICA, LIANA MESTER .......................................................................... 94 MEASURING REGIONAL COMPETITIVENESS. THE CASE OF ROMANIA .......................... 103

RALUCA IRINA CLIPA, MIHAELA IFRIM ........................................................................................ 103 ASPECTS OF DECISIONAL TRANSPARENCY WITHIN THE PREFECT’S INSTITUTION IN ROMANIA AS A CHALLENGE IN A EUROPEAN UNION GOVERNENCE .............................. 112

CLAUDIA SIMONA TIMOFTE ....................................................................................................... 112 THE PHENOMENON OF CORRUPTION AT THE LEVEL OF THE G20 VS. ROMANIA ......... 119

SILVIU DUȚULESCU1, ILEANA NIȘULESCU-ASHRAFZADEH2 ........................................................... 119 RESEARCH AND DEVELOPMENT IN THE EUROPEAN UNION ........................................... 129

GHEORGHE HURDUZEU1, MARIA-ISADORA LAZAR2 ..................................................................... 129 PROMOTING COMPETITION ON THE NATURAL GAS MARKET IN THE EUROPEAN UNION .................................................................................................................................................. 136

MIHAELA IONESCU SAS ............................................................................................................ 136 EMIGRATION TRENDS AND CHALLENGES IN THE FRAMEWORK OF EUROPEAN ECONOMIC INTEGRATION ..................................................................................................... 149

NOJA GRAȚIELA GEORGIANA .................................................................................................... 149 MOROC ANDREI ...................................................................................................................... 149

THE MAINTENANCE CONTRACT BETWEEN THE PAST AND PRESENT, IN REGULATING THEW CIVIL CODE IN FORCE ................................................................................................ 159

CARMEN TEODORA POPA......................................................................................................... 159

LEGAL SEPARATION BETWEEN THE LEGAL COMMUNITY AND LIQUIDATION BETWEEN THE SPOUSES ACORDING TO THE CIVIL CODE ................................................................ 173

CARMEN TEODORA POPA......................................................................................................... 173 FINANCIAL EFFICIENCY OF DAY CARE VERSUS HOSPITALIZATION ............................... 179

UIVAROȘAN DIANA1, ENDRES LAURA1, FODOR KATALYN2 ............................................................ 179 SOME CONSIDERATIONS ON HUMAN CAPITAL SUSTAINABLE DEVELOPMENT IN ROMANIA ................................................................................................................................. 185

VALENTINA VASILE1, ANA-MARIA CIUHU2 ................................................................................... 185 THE STRATEGIC APPROACH OF SUSTAINABLE DEVELOPMENT IN ROMANIA............... 193

CRISTIAN – LIVIU VELE, DIANA CEZARA TOADER, GRAȚIELA BOCA , CEZAR TOADER ..................... 193 SOME CHARACTERISTICS OF ROMANIA’S EXTERNAL TRADE IN THE PERIOD 1990-2014 .................................................................................................................................................. 207

GHEORGHE ZAMAN, FLORENTINA - VIORICA GHEORGHE, ARTUR - EMILIAN SIMION ........................ 207 REGIONAL PATTERNS OF ROMANIAN FOREIGN TRADE IN THE AFTERMATH OF THE ECONOMIC CRISIS ................................................................................................................. 230

GHEORGHE ZAMAN, ZIZI GOSCHIN ............................................................................................ 230 SUB-SECTION: THE IMPACT OF FOREIGN LANGUAGES ON THE BUSINESS ENVIRONMENT ................................................................................................................ 241

BUSINESS ENGLISH WITH FIRST YEAR STUDENTS IN ECONOMICS ............................... 243 IOANA CLAUDIA HOREA ............................................................................................................ 243

STYLISTIC FEATURES OF BUSINESS WRITING .................................................................. 254 ANAMARIA-MIRABELA POP, MONICA-ARIANA SIM ....................................................................... 254

TEACHING SPEAKING SKILLS ............................................................................................... 264 MONICA-ARIANA SIM, ANAMARIA-MIRABELA POP ....................................................................... 264

MÉTAPHORES CONCEPTUELLES AUTOUR DU THÈME « DÉVELOPPEMENT DURABLE » DANS ALTERNATIVES ÉCONOMIQUES (2000-2016) ............................................................ 274

BOGDAN VECHE ...................................................................................................................... 274 SECTION: ECONOMICS, BUSINESS ADMINISTRATION, TOURISM AND ECONOMIC STATISTICS 283 SUB-SECTION: ECONOMICS ......................................................................................... 285

IS TRAINING A SUNKEN COST? .......................................................................................... 287 YAHYA ALSHEHHI1 ................................................................................................................... 287

COMPETITEVENESS PROFILE VERSUS HUMAN DEVELOPMENT PROFILE: THE CASE OF ROMANIA ................................................................................................................................. 295

ANCA OTILIA DODESCU, IOANA CRINA POP COHUŢ, AFRODITA BORMA ......................................... 295 A CONCEPTUAL MODEL REGARDING THE INFORMATION TO BE MADE AVAILABLE ABOUT PROJECTS FINANCED BY THE EUROPEAN SOCIAL FUND .................................. 307

CRISTINA-ELENA CIOCOIU........................................................................................................ 307 CONSIDERATION REGARDING BUDGETARY POLICY IN ROMANIA .................................. 317

RUXANDRA CUREA-PITORAC1, NICOLETA SÎRGHI2 ...................................................................... 317 UNDERSTANDING THE DECLINE OF GREECE .................................................................... 327

RALUCA GABRIELA DULGHERIU ................................................................................................ 327 SELECTIVE INCENTIVES AND TRADE UNION DENSITY ..................................................... 340

NORA ILONA ELEK ................................................................................................................... 340 EXAMINING EUROPEAN BUSINESS ENVIRONMENTS AND LABOUR MARKETS. A COUNTRY-CLUSTERING PROPOSAL ................................................................................... 351

MARINA FERENȚ-PIPAȘ, GABRIEL ARMEAN ................................................................................ 351 LABOUR MARKET INTEGRATION ISSUES RELATED TO MIGRANTS ARRIVING TO HUNGARY ................................................................................................................................ 363

PÉTER MIKLÓS KŐMÍVES ......................................................................................................... 363 KRISZTINA DAJNOKI ................................................................................................................. 363

SUSTAINABLE USE OF GEOTHERMAL WATERS IN BIHOR COUNTY FROM LEISURE BATHS TO ELECTRICITY PRODUCTION ............................................................................... 374

CĂLIN FLORIN MOCAN ............................................................................................................. 374

WHY DO WE NEED HUMAN CAPITAL INDEX? ...................................................................... 375 CSABA NAGY .......................................................................................................................... 375

ABOUT THE ROMANIAN TOYS AND GAMES MARKET ........................................................ 386 NELA ȘTELIAC ........................................................................................................................ 386

THE INFLUENCE OF SOCIAL CONTRIBUTIONS ON THE ECONOMIC GROWTH ............... 397 ANDRADA POP ........................................................................................................................ 397

CULTURAL AND CREATIVE INDUSTRIES ............................................................................. 402 DIANA SAVA ........................................................................................................................... 402

WHERE, HOW AND WHEN WORK PEOPLE IN BIHOR COUNTY? ....................................... 410 FLORICA ŞTEFĂNESCU, DELIA BEKESI, CSABA BEKESI ................................................................ 410

THE IMPORTANCE OF PHYSICAL EDUCATION AND SPORT IN THE LIFE OF THE STUDENTS OF THE ECONOMY COLLEGES ......................................................................... 428

CORINA ȚIFREA ....................................................................................................................... 428 ANTOANELA GIOSAN ................................................................................................................ 428 RALUCA COSTACHE................................................................................................................. 428

INVESTING IN JOB TRAINING IN ROMANIA .......................................................................... 435 MĂLINA LUCIA TURCUȚ ............................................................................................................ 435

SUB-SECTION: BUSINESS ADMINISTRATION ............................................................. 445 THE INFLUENCE OF EDUCATION ON THE ENTREPRENEURIAL BEHAVIOUR IN ROMANIA .................................................................................................................................................. 447

BIANCA AVRAM1, SIMONA SABOU2 ............................................................................................ 447 DECREASING SCHOOL DROPOUT RATE AS A FACTOR OF ECONOMIC GROWTH AND SOCIAL EMPOWERMENT. THEORETICAL INSIGHTS .......................................................... 457

ALINA BADULESCU, CSABA CSINTALAN ...................................................................................... 457 ROMANIA: MANY ENTREPRENEURS BUT FEW INNOVATORS .......................................... 465

DANIEL BADULESCU, OTILIA CADAR .......................................................................................... 465 THE EFFECTS OF MARKETING CAPABILITIES ON FIRM’S PERFORMANCE .................... 476

LUMINITA STEFANIA BODEA ...................................................................................................... 476 CAN CSR INFLUENCE EMPLOYEES SATISFACTION? ......................................................... 485

PATRIZIA GAZZOLA1, PIERO MELLA2 .......................................................................................... 485 THE IMPACT OF THE ECONOMIC ENVIRONMENT ON ENTREPRENEURSHIP: EVIDENCE FROM EUROPEAN COUNTRIES ............................................................................................ 494

ANGELA ROMAN1, VALENTINA DIANA RUSU2 .............................................................................. 494 DOS AND DON’TS FOR A SAFER WORKPLACE: A STUDY OF PAKISTANI PHARMACEUTICALS ............................................................................................................... 503

SEHRISH ABDUL KARIM ............................................................................................................ 503 CREATIVITY IS EVERYONE’S BUSINESS: HOW TO ENHANCE EMPLOYEE CREATIVITY IN TELECOMMUNICATION SECTOR .......................................................................................... 515

SEHRISH ABDUL KARIM, SYED UMER SARFRAZ .......................................................................... 515 SUB-SECTION: ECONOMIC STATISTICS AND MODELLING ..................................... 525

OPTIMIZATION OF THE PRODUCTION STRUCTURE OF FIELD ENERGY CROPS ............ 527 MARGIT CSIPKÉS, TÍMEA GÁL ................................................................................................... 527

A COMPARISON OF SELF-ASSESSMENT TENDENCIES OF FULL-TIME AND PART-TIME UNIVERSITY STUDENTS ........................................................................................................ 538

ANDRÁS ISTVÁN KUN1, ÉVA KATALIN KOVÁCS2, JÓZSEF BOROS2 ................................................. 538 DIFFERENCES BETWEEN MEAN-VARIANCE AND MEAN-CVAR PORTFOLIO OPTIMIZATION MODELS ........................................................................................................ 548

PANNA MISKOLCZI ................................................................................................................... 548

SUB-SECTION: TOURISM ............................................................................................... 559 ANALYSIS OF SOCIAL VALIDATION BEHAVIOUR ON TRAVEL ONLINE REVIEWS WEBSITES ............................................................................................................................... 561

OLIMPIA BAN, VERSAVIA ANCUSA ............................................................................................. 561 A MODEL FOR MEASURING THE STUDENT BEHAVIOR IN WEB 2.0. CLASS. CASE STUDY OF TOURISM STUDENT SPECIALIZATION ........................................................................... 572

RAMONA LACUREZEANU1, LIANA STANCA1, ALEXANDRU CHIS2 .................................................... 572 FACTORS INFLUENCING THE ORIENTATION TOWARDS INNOVATION IN THE HOSPITALITY INDUSTRY – THE CASE OF ROMANIAN HOTELS ........................................ 584

ANDREA NAGY1, CARMEN BĂBĂIȚĂ2 .......................................................................................... 584 SECTION: FINANCE, BANKING, ACCOUNTING AND AUDIT 597 SUB-SECTION: PUBLIC FINANCES ............................................................................... 599

METHODS OF PERFORMANCE ANALYSIS IN BANKS ......................................................... 601 IOAN BĂTRÂNCEA, LUCIAN GĂBAN, IONUȚ RUS, PAUL MINTEUAN ................................................. 601

TOWARD A STRONGER FISCAL CONVERGENCE AND DISCIPLINE FOR EUROPE – HOW FAR ARE WE? .......................................................................................................................... 609

FLORIN-ALEXANDRU MACSIM1, FLORIN OPREA 2 ........................................................................ 609 TAXATION. ECONOMIC ISSUES AND APPROACHES .......................................................... 619

IOAN-DAN MORAR ................................................................................................................... 619 ANCA MITU ............................................................................................................................. 619

ANALYSIS OF COSTS AND BENEFITS OF INVESTMENTS IN WASTE MANAGEMENT SYSTEMS IN BULGARIA ......................................................................................................... 625

PRESIANA NENKOVA, DIYANA METALOVA .................................................................................. 625 SUB-SECTION: CORPORATE FINANCES ..................................................................... 637

THE ADDED VALUE CREATED BY COMPANIES LISTED ON BUCHAREST STOCK EXCHANGE: TRENDS AND PERSPECTIVES ........................................................................ 639

IULIA-OANA ŞTEFAN (BELCIC-ŞTEFAN) ...................................................................................... 639 VALUE CREATION AND DIFFERENT DIMENSIONS OF VALUE IN CORPORATE PRACTICE .................................................................................................................................................. 651

ANITA KISS ............................................................................................................................. 651 EUROPEAN INTEGRATION AND CAPITAL MARKET EFFICIENCY IN CEE COUNTRIES ... 661

NICUȘOR CĂRĂUȘU ................................................................................................................. 661 PREMISES OF BEHAVIORAL FINANCE IN RATIONAL DECISION-MAKING ........................ 671

LAURENȚIU DROJ .................................................................................................................... 671 ELENA – ANA IANCU (NECHITA) ................................................................................................ 671 IOANA FLORINA POPOVICI – COITA ............................................................................................ 671

DOES SIZE INFLUENCE FIRM PERFORMANCE? EVIDENCE FROM ROMANIAN LISTED COMPANIES............................................................................................................................. 682

SEBASTIAN LAZAR ................................................................................................................... 682 MEASURING FINANCIAL LITERACY: A CASE STUDY OF SELF-ASSESSMENT AMONG UNDERGRADUATE STUDENTS IN HUNGARY ...................................................................... 690

DOMICIÁN MÁTÉ, ZSUZSANNA KISS, VIKTOR LÁSZLÓ TAKÁCS, VIVIEN MOLNÁR ............................. 690 DEVELOPMENT OF REAL OPTION THEORY IN THE LAST 20 YEARS ............................... 698

ANDREA RÓZSA ...................................................................................................................... 698 THE IMPACT OF TAXATION ON FIRM’S PERFORMANCE: EMPIRICAL EVIDENCE ON THE CASE OF CEE COUNTRIES .................................................................................................... 710

VALENTINA DIANA RUSU, CARMEN TODERAŞCU ......................................................................... 710 CREATING CAPITAL MARKETS UNION - OPPORTUNITIES AND LIMITATIONS................. 718

SABĂU-POPA CLAUDIA DIANA, BOLOȘ MARCEL IOAN, BRADEA IOANA ALEXANDRA ........................ 718 PURCHASED GOODWILL IN INTERNATIONAL ACQUISITIONS. MICROSOFT-NOKIA CASE .................................................................................................................................................. 727

SACUI VIOLETA, SZATMARY MICLEA CAMELIA ............................................................................ 727

USING BENFORD’S LAW TO THE DETECTION OF MISREPRESENTATION OF FINANCIAL STATEMENTS DATA ............................................................................................................... 737

RADOSLAV TUŠAN1 ................................................................................................................. 737 SUB-SECTION: BANKING ............................................................................................... 746

THE EFFECT OF MAJOR EVENTS ON BANK SHARE PRICE IN ROMANIA ......................... 747 BOGDAN CĂPRARU1, IULIAN IHNATOV2 AND NICU SPRINCEAN3 ..................................................... 747

CROSS-BORDER TRANSMISSION OF UNCONVENTIONAL MONETARY POLICY ............. 758 SORINA IOANA COROIU1, ANCA MITU2 ....................................................................................... 758

NON-BANK FINANCIAL INSTITUTIONS – ACTORS IN THE SHADOW BANKING SYSTEM 763 SILVIA GHIȚĂ-MITRESCU1, CRISTINA DUHNEA1, IONUT ANTOHI2, ANDREEA-DANIELA MORARU2 ...... 763

THE DEBIT AND CREDIT CARD MARKET IN ROMANIA. A MACROECONOMIC PERSPECTIVE ......................................................................................................................... 772

COSMIN-IONUȚ IMBRIȘCĂ1, ALINA-MARIA NEAȚU2 ....................................................................... 772 FINANCIAL LITERACY OF STUDENTS IN BUSINESS AND ECONOMICS HIGHER EDUCATION ............................................................................................................................. 781

ALEXANDRA PINTYE, MARIETTA KISS ........................................................................................ 781 INTERNAL AUDIT IMPLICATIONS ON BANK PROFITABILITY. THE ROMANIAN CASE. ..... 790

PAULA TERINTE1, MIHAELA ONOFREI2, BOGDAN FIRTESCU3 ........................................................ 790 SUB-SECTION: ACCOUNTING ....................................................................................... 801

POLICIES AND ACCOUNTING OPTIONS UNDER PRESENTATION OF AN ACCURATE IMAGE OF ACCOUNTING INFORMATION IN THE ACCOUNTING INFORMATION SYSTEM AT TRADE ENTITIES ............................................................................................................... 803

ADRIAN-COSMIN CARAIMAN ..................................................................................................... 803 CHALLENGES INCURRED IN THE AUDITING OF FAIR VALUE MEASUREMENTS ............ 812

SILVIU-VIRGIL CHIRIAC ............................................................................................................ 812 WHERE IS THE HUNGARIAN LOCAL TAXATION HEADING? ............................................... 823

ÉVA DARABOS, KORNÉL TÓTH .................................................................................................. 823 THE GROWING IMPORTANCE OF INTERNATIONAL FINANCIAL REPORTING STANDARDS .................................................................................................................................................. 834

KORNÉL TÓTH, ÉVA DARABOS .................................................................................................. 834 SECTION: MANAGEMENT, MARKETING, ECONOMIC INFORMATICS AND CYBERNETICS 841 SUB-SECTION: MANAGEMENT ..................................................................................... 843

VISION AND STRATEGIC THINKING IN THE ROMANIAN FAST GROWING FIRMS MANAGEMENT ........................................................................................................................ 845

NICOLAE BIBU1, DIANA SALA2, MARIA ALB 3, .............................................................................. 845 CHARACTERISTICS OF UNIVERSITY SPIN-OFFS. THE ROMANIAN SITUATION .............. 852

NICOLAE BIBU1, VALENTIN MUNTEANU2 , DELIA GLIGOR 3, LAVINIA-MARIA CERNESCU4, .................. 852 CREATING A MODEL CULTURE OF MANAGEMENT CHANGE .......................................... 871

BOCA GRATIELA DANA1, LINDITA MUKAJ2, MARSIDA VISHKURTI3 .................................................. 871 HOW TO ENHANCE ENTREPRENEURSHIP IN UNIVERSITIES. BUCHAREST UNIVERSITY OF ECONOMIC STUDIES CASE STUDY ................................................................................ 881

EDUARD GABRIEL CEPTUREANU ............................................................................................... 881 CRITICAL SUCCESS FACTORS FOR INFRASTRUCTURE EUROPEAN FUNDED PROJECTS .................................................................................................................................................. 888

SEBASTIAN-ION CEPTUREANU .................................................................................................. 888 CAN ROMANIA BECOME A REGIONAL NATURAL GAS HUB? A COMPARATIVE STRATEGIC VIEW ................................................................................................................... 899

ANDREI COVATARIU, DOBRIN COSMIN ...................................................................................... 899 THE ROLE OF CREATIVITY FOR ACHIEVING PERFORMANCE IN MANAGEMENT ........... 906

SUZANA DEMYEN, JEANINA CIUREA .......................................................................................... 906 ROMANIAN HEALTH CARE SYSTEM IN THE EUROPEAN UNION CONTEXT ..................... 914

OVIDIU-ILIUTA DOBRE .............................................................................................................. 914

THE ROLE OF QUALITY MANAGEMENT IN ROMANIAN INFANT’S VACCINATION DEBATE .................................................................................................................................................. 926

COSMIN OCTAVIAN DOBRIN, RUXANDRA DINULESCU, VOICU LAURA VIOLETA, COSTACHE RALUCA . 926 MOTIVATION, VALUES, AND CAREER RESEARCH AMONG UNIVERSITY STUDENTS .... 933

EVA GERGELY, ANITA PIEROG .................................................................................................. 933 QUALITATIVE STUDY ON THE FOUNDATIONS OF THE EXISTANCE OF THE EMPLOYEES’ PSYCHOLOGICAL CONTRACT. THE CASE OF THE ROMANIAN AUTOMOTIVE INDUSTRY .................................................................................................................................................. 944

DOINA MURESANU .................................................................................................................. 944 FROM FAMILY-OWNED BUSINESS TO LOGISTICS CENTERS – THE CASE OF FMCG CHAINS .................................................................................................................................... 952

ALEXANDRU CONSTANTIN PETRACHE, MĂDĂLINA MATICIUC ........................................................ 952 THE REASONS WHY SOMETIMES THE ROMANIAN PROCESSES OF ORGANIZATIONAL CHANGE FAIL .......................................................................................................................... 959

MARIANA PREDIȘCAN1, ROXANA NADINA ROIBAN2 AND SIMONA BIRIESCU3 ................................... 959 NEURO-FUZZY MODELING APPLIED IN PROGRAM MANAGEMENT TO INCREASE LOCAL PUBLIC ADMINISTRATION PERFORMANCE ......................................................................... 968

ADRIAN-MIHAI ZAHARIA-RĂDULESCU ........................................................................................ 968 IOAN RADU ............................................................................................................................. 968

SUB-SECTION: MARKETING .......................................................................................... 977 ANALYSIS OF THE EFFECT OF QUALITY COMPONENTS OF WEB 2.0 ENABLED E-COMMERCE WEBSITES ON ELECTRONIC WORD-OF-MOUTH MARKETING (EWOM) AND ON CUSTOMER LOYALTY ...................................................................................................... 979

HARUN GÜMÜŞ 1, VEDAT BAL2 ................................................................................................. 979 AN OVERVIEW OF THE DIRECT SELLING INDUSTRY ......................................................... 987

ALINA-MARIA NEAȚU1, COSMIN-IONUȚ IMBRIȘCĂ2 ....................................................................... 987 VOLUNTEERS TRUST IN ORGANIZATIONAL MISSION, LEADERSHIP AND ACTIVITIES EFFIECIENCY .......................................................................................................................... 995

NEMȚEANU (SANA) MARCELA SEFORA ...................................................................................... 995 TARCZA TEODORA MIHAELA ..................................................................................................... 995

THE IMPACT OF SOCIAL MEDIA CONVERSATIONS ON BRAND IMAGE OF CLOUD COMPUTING PROVIDERS .................................................................................................... 1002

GHEORGHE ORZAN, IOANA BURGHELEA, LUANA-DIANA STUPU, ANDREEA-LARISA BOBOC ........... 1002 BRAND SIGNIFICANCE IN THE MARKETING OF LUXURY WATCHMAKING. QUALITATIVE RESEARCH ON THE BUCHAREST MARKET ....................................................................... 1011

NICOLAE AL. POP.................................................................................................................. 1011 MONICA ZOTTU-Z ................................................................................................................. 1011

DETERMINANTS OF THE DEMAND FOR EDUCATIONAL SERVICES OFFERED BY THE MILITARY HIGHER EDUCATION INSTITUTIONS ................................................................. 1021

LAURENŢIU FLORENTIN STOENICĂ1, CĂLIN PETRICĂ VEGHEŞ2 .................................................. 1021 SUB-SECTION: ECONOMIC INFORMATICS AND CYBERNETICS ............................ 1031

STUDY ON THE EVOLUTION OF SOME FINANCIAL PRODUCTS BASED ON MARKOV CHAINS METHOD .................................................................................................................. 1033

MARTA KOVACS (KISS) .......................................................................................................... 1033 INFLUENCE OF THE CAPITAL STRUCTURE ON THE COMPANIES PERFORMANCE. STUDY ON THE ENERGY SECTOR COMPANIES LISTED ON BSE ................................... 1040

SABĂU-POPA CLAUDIA DIANA, BOLOȘ MARCEL IOAN, BRADEA IOANA ALEXANDRA ...................... 1040

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METHODS OF PERFORMANCE ANALYSIS IN BANKS Ioan Bătrâncea, Lucian Găban, Ionuț Rus, Paul Minteuan Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj, Romania i_batrancea@yahoo.com luciangaban@yahoo.com ioan.rus@yahoo.com paul.minteuan@yahoo.com Abstract. Performance generally in the banking specifically highlight on the one hand the financial institution's ability to generate profit, and on the other hand shows the consequences of financial decisions taken by the bank's management. In our opinion bank decisions are based on the analysis of the effects of the bank's policy in the past period. Therefore the paper presents such an analysis that supports decision makers banking. Key words: Bank, Efficiency, Performance, Ratios JEL: G21, G24 1. Introduction The performance of banks is highlighted in numerous papers of banking. The performance of banks is closely integrated elements of profit issue rating as an integral part of CAMEL rating models as well as in USA, PATROL in Italy, and PEARLS in USA, Orap in France, the UK RATE, and RAST in Holland. Therefore we believe that an analysis of bank performance can highlight strengths and weaknesses of a bank as a consequence of the credit institution's management. The work we structured it on two levels: an analysis of vertical and horizontal revenues, expenses and loan portfolio and the exposure of banks on the one hand and analysis on the basis of rates of banking performance on the other. Concrete ways analysis is based on annual financial reports of banks and a number of indicators on both volume and indicators presented in the form of financial ratios. Technical analysis is based on both static analysis and dynamic analysis and the results compared in the bank by a group of credit institutions in the interval of time between 2006 and 2011. 2. Literature review In a recent paper examines whether individual banks did improve their performance through securitization and the results show that securitizing banks tend to be more profitable institutions, with higher credit risk exposure. On the

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other hand the authors also find that securitizing banks tend to hold larger and less diversified loan portfolios, have less liquidity, and hold less capital. (Casu, Clare, Sarkisyan, 2013) Others analysts consider that banking’s success largely depends on public confidence and only a small part of the banking services customers understand the indicators and ratios which are used to assess bank’s activities. Therefore, there is a need to analyze banks performance results in Lithuania. The paper presents a principal component analysis model applied on banks performance ratios in Lithuania. (Vidzbelyte, Jaseviciene, Bronius, 2013) Using a panel of Chinese banks over the 1997–2004 periods, other analysts assess the effect of bank ownership on performance using a static, selection, and dynamic effects of (domestic) private, foreign and state ownership. They find that the “Big Four” state-owned commercial banks are less profitable, are less efficient, and have worse asset quality than other types of banks except the “policy” banks (static effect). (Lin, Zhang, 2009) Based on panel of eleven transition countries 225 banks and 856 observations some authors use the efficiency measures along with return on assets to investigate the influence of ownership type and conclude that privatization by itself is not sufficient to increase bank efficiency as government-owned banks are not appreciably less efficient than domestic private banks. (Bonin, Hasan, Wachtel, 2005) Another paper empirically examines how capital affects a bank’s performance and how this effect varies across banking crises, market crises, and normal times that occurred in the US over the past quarter century and they got two main results: First, capital helps small banks to increase their probability of survival and market share at all times (during banking crises, market crises, and normal times); Second, capital enhances the performance of medium and large banks primarily during banking crises. (Berger, Bouwman, 2013) In a recent research is analyze the impact of ownership concentration on MENA banks' performance over the period 2004-2011 includes 38 commercial banks belonging to ten countries of the MENA region. Based on an econometric method the researchers show that ownership concentration is significant in explaining performance differences between MENA banks and the bank performance depends on the identity of large shareholder. (Rim, Majdi, 2015) In their paper some authors aim at examining the relationship between the relatively strong banking industries and the values of stakeholder systems. The authors compare international successful stock markets systems such as the US and the UK with successful stakeholder systems such as Japan, Germany, and most of continental Europe. (Behery, Eldomiaty, 1991) Using a sample of 50 largest Chinese banks during the period of 2003–2010, other researchers explore a comprehensive set of board characteristics (size, composition and functioning of the board) and analyze their impacts on bank performance and bank asset quality in China and find that the number of board meetings and the proportion of independent directors have significantly positive impacts on both bank performance and asset quality while board size has a significantly negative impact on bank performance. (Liang, Xu, Jiraporn , 2013) In another study other develop a measure of bank performance based on the Malmquist index approach based on existing financial ratios such as ROA and ROE. (Lee, Kim, 2013)

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Credit is the business and recovery is the core issue of banks. Documentation of transactions is indispensible to effect complete and timely recovery of banks' credits. That is why in their study some authors focus on commercial banks (the term commercial bank includes the Islamic banks). (Niazi, Azim, Ahmed, 2012) In Japan, some researchers construct and estimate a dynamic network Luenberger productivity indicator for Japanese banks during fiscal years 2006–2012. The network aspect to the model recognizes that banks produce deposits in the first stage of production using inputs such as labor, physical capital, and equity capital and then in the second stage use those deposits to generate a portfolio of loans and securities investments. (Fukuyama, Weber, Measuring 2015) The financial crisis had important consequences in banking sector and that is why in another paper is show that a bank's stock return performance during the 1998 crisis predicts its stock return performance and probability of failure during the recent financial crisis. This effect is economically large. The authors’ findings are consistent with persistence in a bank's risk culture and/or aspects of its business model that make its performance sensitive to crises. Banks that relied more on short-term funding, had more leverage, and grew more are more likely to be banks that performed poorly in both crises. (Fahlenbrach, Prilmeier, Stulz, 2012) Analyzing the China banks evolution before the financial crises some authors investigate the effects of focus versus diversification on bank performance using data on Chinese banks during the 1996–2006 period and construct a new measure, economies of diversification, and compare the results to those of the more conventional focus indices, which are based on the sum of squares of shares in different products or regions. Diversification is captured in four dimensions: loans, deposits, assets, and geography. (Berger, Hasan, Zhou, 2010) Finally in a recent study is examine the effect of corporate governance denoted by board size, duality, agency cost etc. on the performance of selected 24 GCC banks based on the criteria of total assets for the financial year 2012-13 and Tobin's Q and Return on Total Assets (ROTA) are adopted as a measurement of accounting and financial performance respectively. The results indicate that smaller boards are more capable for monitoring the management closely in GCC banking sector. (Naushad, Malik, 2015) 2. Method and results A first dimension of performance analysis in banks refers to the structure of revenues, expenses and portfolio quality, vertical analysis of the profit and loss and is based on percentages in each income or expense, expressed as a figure percentage of total revenues, expenditure respectively. In our study we take into account the annual reports during 2006 -2011 of the following banks: Unicredit Bank, Volksbank and BCR - Erste Bank.

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First we analyzed the evolution of the income structure and found the following.

Figure 1 The evolution of income structure ratios Source: Own calculus This representation is observed the following:

o an interest income fluctuated between first and second category share in total revenues during the period analyzed, with a clear upward trend; o rate fee income has fluctuated but an increasing trend; rate income from financial operations followed an upward trend with a maximum weight of 21.14% in 2009; o Other income rates had the largest share in total revenues in 2006 (70.70%), after which it decreased considerably, reaching a low of 14.47% in 2009.

Another dimension of performance that connects expense accounts relates to the structure of expenditure and highlights the bank's financial resource consumption to achieve revenues in the financial year.

2006 2007 2008 2009 2010 2011

Interest income ratio 16.36% 55.46% 52.51% 54.07% 48.24% 45.53%

Income bank fees ratio 4.07% 13.95% 9.57% 10.34% 7.85% 9.97%

Income financialoperation ratio

8.87% 11.01% 12.55% 21.12% 18.06% 13.55%

Other income ratio 70.70% 19.58% 25.37% 14.47% 25.85% 30.94%

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Figure 2 Evolution of structural spending rates banks analyzed Source: Own calculations based on the profit and loss account of banks analyzed According to the chart above that: the share of expenses related to commissions and financial operations is rather low total cost hardly exceeds 10%; interest expense rate has a significant share in the total expenditures on average hovering at 30%; interest expense rate was the steepest dynamic evolution for the period. Another dimension of analysis concerns the extent of exposure of the group of banks through an analysis of the correlation between the evolution of the share of interest expense and bank debt ratio to non-bank customers and banking.

Figure 3 Evolution of the exposure of the banks analyzed Source: Own calculations based on the profit and loss account of banks analyzed Analyzed the exposure of banks to non-bank customers and the bank followed a trend of accelerated growth during the financial crisis of 38.40% in 2007 and 45.73% in 2008, after which he lowered to 23 77% in 2011.

2006 2007 2008 2009 2010 2011

Interest expenses 7.97% 33.19% 39.33% 37.78% 28.43% 20.14%

Debts of banking andnon-banking customers

81.61% 86.45% 86.01% 86.54% 84.14% 84.74%

Bank exposure 9.77% 38.40% 45.73% 43.66% 33.79% 23.77%

2006 2007 2008 2009 2010 2011

Interest Costs ratio 7.97% 33.19% 39.33% 37.78% 28.43% 20.14%

Bank fees expensesratio

0.72% 1.35% 1.41% 1.22% 1.08% 1.37%

Financial operationexpenses

6.48% 4.95% 5.56% 10.25% 10.64% 7.73%

Other bank expenses 84.82% 60.50% 53.70% 50.74% 59.86% 70.76%

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Analyzing bank performance cannot ignore the analysis of rates of profitability among which we considered net margin of bank assets (MV), return on bank assets (ROA), return on equity (ROE) and profit margin so as present below.

Figure 4 The evolution of net margin assets to banks analyzed Source: Own calculations based on the profit and loss account of banks analyzed From the chart above we can see that the net asset values of the indicator margin bank recorded a random evolution, decreasing in 2009 amounted to 1.88% after posting a comeback performance in 2006, but has not reached maximum of 2007.

Figure 5 Evolution of ROA and ROE banks analyzed Source: Own calculations based on the profit and loss account of banks analyzed The rate of return on assets for banks analyzed had a downward trend since 2009 (2.21%) when it peaked, increasing to 1.53% in 2010 and -0.18% in 2011.

2006 2007 2008 2009 2010 2011

Net margin of bank assets 2.30% 2.74% 2.72% 1.88% 1.91% 2.32%

Net margin dynamics ofbank assets with fixed

base100.00% 119.53% 118.60% 81.82% 83.15% 101.10%

2006 2007 2008 2009 2010 2011

ROA 1.16% 0.93% 1.42% 2.21% 1.53% -0.18%

ROE 9.48% 11.39% 17.82% 25.55% 16.33% -2.22%

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The rate of return on equity for banks analyzed had as a downward trend since 2009 when it registered a value of 25.55%, falling to 16.33% in 2010 and -2.22% in 2011 .

Figure 6 Evolution profit margin banks analyzed Source: own calculations based on financial statements of banks analyzed The chart above is noted that the profit margin indicator aiming recorded a strong downward trend from 29.51% in 2006 to -4.92% in 2011. 4. Conclusions The analysis undertaken above is observed the following: ► State banking performance depends primarily on the quality of bank assets; ► Secondly we find that the return on equity has a strong impact on bank performance; ► While bank policies taken in respect of interest and fees are reflected in the bank's performance; ► Not least we find that the return on bank investments both deposits and equity decisively influence the performance of the bank; ► We finally found that too high a degree of exposure to non-bank debt and banking customer can affect performance of state banks.

2006 2007 2008 2009 2010 2011

The profit margin 29.51% 19.26% 26.91% 57.83% 46.84% -4.92%

Dynamics profit marginfixed base

100.00% 65.27% 91.19% 195.95% 158.73% -16.66%

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