The Journal of Accounting and Management

Driving Sustainable Growth: The Corporate Sustainability Due Diligence Directive as a Catalyst (CSDDD) for Public Administration Reform and Corporate Accountability in the European Green Deal

Junaid Sattar Butt, Farzana Kousar — Fri, 20 Dec 2024 00:00:00 +0000

The European Union (EU) has enacted a comprehensive set of sustainable finance laws, including
the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation, and the Corporate
Sustainability Due Diligence Directive (CSDDD) (Savourey & Litwin, 2024). This study explores the role of
the (CSDDD) entered into force on July 25, 20243 as a catalyst for driving sustainable growth through the
reform of public administration and the enhancement of corporate accountability within the context of the
European Green Deal. The research aims to identify synergies between the CSDDD and the Green Deal,
contributing to the discourse on sustainable economic development by providing a comprehensive
understanding of how effective governance mechanisms can promote sustainability goals across the European
Union. To achieve this, the study employs a mixed-methods approach that combines qualitative analyses of
policy frameworks and quantitative assessments of economic outcomes in EU member states. Data were
collected through case studies, interviews with stakeholders, and a review of existing literature on public
administration reforms and corporate governance practices. The findings reveal that the implementation of
the CSDDD significantly influences public administration reforms by fostering a culture of accountability and
transparency in corporate practices. Furthermore, the study highlights that aligning corporate accountability
measures with the objectives of the European Green Deal leads to improved environmental and economic
outcomes, reinforcing the interconnectedness of sustainability and governance. In conclusion, this research
underscores the critical need for coherent policy frameworks that integrate the CSDDD and the European
Green Deal, emphasizing the importance of public administration reforms in facilitating corporate
accountability. The broader implications suggest that fostering a collaborative governance approach can
enhance sustainable economic growth while addressing pressing environmental challenges in Europe.

Assessment of Fair Value Measurement for Financial Reporting in Industrial Manufacturing Firms in Nigeria

Abiodun Rafiat Ayeni-Agbaje, Olufemi Dadepo Adesina, Adesodun Isaac Adebayo — Fri, 20 Dec 2024 00:00:00 +0000

Fair value measurement in financial reporting has become increasingly prevalent, marking a departure from traditional historical cost accounting. This study assesses the application of fair value measurement in industrial manufacturing firms in Nigeria, exploring its opportunities and challenges within the unique economic and regulatory context. The research employed content analysis of financial statements from seven listed industrial manufacturing companies in Nigeria, covering the period from 2013 to 2022. The findings reveal that fair value measurement is applied to varying degrees across financial instruments, property, plant and equipment, impairment assessments, investment property and intangible assets. Also, the study highlights the benefits of fair value measurement, including reflecting true economic value, enhancing transparency, facilitating better decision-making, mitigating risks, and attracting investment. However, challenges such as valuation complexity, subjectivity, illiquid markets, regulatory compliance, and potential volatility in reported financial results are also discussed. The study concludes that adherence to fair value accounting principles and observance of financial reporting qualities can enhance the usefulness of corporate financial reports for stakeholders.

The Influence of Monetary Policy on the Sustainable Economic Development of the Country in the Context of Globalization

Aureliu Margineanu, Rodica Cernit, Tatiana Moroi — Fri, 20 Dec 2024 00:00:00 +0000

This paper analyzes the influence of monetary policy on the sustainability of a country’s economic development in the current conditions of globalization. The theoretical aspects and empirical data are examined, illustrating how monetary policy contributes to achieving macroeconomic stability, economic growth, and reducing inflation levels. The relevance of the topic is determined by the impact of both internal and external factors. Understanding and applying them in a real and objective manner allow for the investigation of the rationality and correctness of the development directions of the economy, as well as the optimal use of the financial resources of the banking system. The raising of questions and analysis regarding the evaluation and efficient use of the economic resources of credit organizations is driven by the need to establish the real possibilities of the banking system in the Republic of Moldova to support the economy’s exit from the crisis and its structural modernization with minimal costs. However, this, in turn, requires a comprehensive analysis of the situation, an objective evaluation of the existing resources, and the formation of development directions for the economic potential of the country’s banking system.

Emerging Risks and Strategic Challenges in the Insurance Sector

Rodica Cernit, Tatiana Moroi, Aureliu Margineanu — Fri, 20 Dec 2024 00:00:00 +0000

Insurance sector, essential for economic stability and financial protection, faces numerous significant risks and challenges generated by rapid and complex changes. The aim of the paper is to deepen the understanding of emerging risks affecting the insurance sector and to provide strategic solutions for insurance companies. These challenges have a significant impact on the way insurance companies structure their product portfolios and define their business models. The existing concepts in the specialized literature are emerging risks and strategic challenges regarding digital transformation. The paper combines qualitative and quantitative methods to understand their complexity. The research results can be obtained by developing strategies for diversifying insurance portfolios to cope with economic uncertainties. The implications, expressed in the form of conclusions and recommendations, can guide academic and administrative development. The value of the work is defined by its impact on the understanding and management of emerging risks in the insurance sector.

Exploring the Relationship Between Tax Reform and Tax Optimization - Empirical Research from the Accounting Professional’s Perspective

Mihaela Ionela Socoliuc, Mihaela Tulvinschi — Fri, 20 Dec 2024 00:00:00 +0000

The purpose of this research is, on the one hand, to test the perception of accounting professionals in relation to the tax measures adopted as of 01.01.2024 in Romania, and on the other hand, to identify some optimization methods agreed by accounting professionals at the level of taxation of economic agents. The research methodology is quantitative and involved testing the perceptions of accounting professionals regarding the tax reform and identifying measures of tax optimization strategies by means of a structured questionnaire, which was then statistically processed using SPSS. The results revealed that respondents do not agree with the rather high frequency of tax changes, which leads to a state of high tax unpredictability and difficulties in identifying managerial strategies for companies and, consequently, to a decrease in taxpayers’ compliance and in the collected budget revenues. We believe that the study can be useful for the state and tax regulators who can adopt tax policies aimed at increasing taxpayers’ compliance and thus reducing tax evasion, for administrators who can base their associated business strategies, but also for the academic environment that can continue research to identify new tax optimization measures in Romania.

Assessment of the Competitiveness and Financial Sustainability of the Main Market Leaders in Customized Software in the Republic of Moldova

Victor Cojocaru, Marian Socoliuc — Fri, 20 Dec 2024 00:00:00 +0000

The purpose of this paper is to assess the financial position and performance of the main market leaders in the customized software sector in the Republic of Moldova for the period 2022-2023, based on the main financial indicators of their assessment. The research methodology consisted, in the first stage, in the manual collection of financial-accounting information from the financial statements published in the public depository of financial statements, in the second stage, this primary information was subjected to mathematical algorithms for determining financial indicators and which were subsequently used in economic-financial analysis. Our results revealed the specific trends associated with financial performance, competitiveness and sustainability as well as the determinants influencing the competitiveness and sustainability of the leaders in this sector. We believe that our results can be useful to investors who can guide their investments in companies in this sector, to the management of these companies who can base their management strategies on the results obtained, and to the state or regulatory bodies who can adopt public and fiscal policies specific to this sector.

Board Diversity and Human Capital Reporting of Selected Firms: Evidence from Nigeria

Clement Olatunji Olaoye, Mary Ayoola Oladele — Fri, 20 Dec 2024 00:00:00 +0000

This study examined the influence of board diversity on human capital reporting (HCR) in selected firms, focusing on the impact of board gender composition, audit committee gender composition, foreign directorship and the educational qualifications of board members. Utilizing a robust dataset and employing quantitative methods. The research finds that approximately 20.56% of the variation in HCR can be explained by the independent variables included in the model. The study highlights a statistically significant relationship, supported by an F-statistic of 18.76 (p-value = 0.0000), indicating the relevance of diverse governance structures in promoting transparency and accountability in human capital reporting. Empirical evidence from recent literature reinforces these findings, demonstrating that organizations with diverse boards are more likely to engage in comprehensive and transparent human capital disclosures. The theoretical framework applied underscores the critical role of board diversity in enhancing corporate governance and stakeholder engagement. The study concludes that fostering diversity within boards and audit committees can lead to improved HCR, ultimately contributing to better organizational performance and accountability. Recommendations for practice include promoting gender diversity and educational qualifications on boards to enhance human capital reporting and stakeholder communication.