FINANCIAL PERFORMANCE ANALYSIS FROM A SOCIAL WELFARE PERSPECTIVE - A COMPARATIVE STUDY ROMANIA-MOLDOVA

Abstract

Under conditions of uncertainty, the financial performance of a state (which is the attribute of the state's assurance of welfare through the contribution of economic activity to the financial-budgetary vectors) changes in relation to the influences of uncertainty factors and the response of the entropy of the system to the social protection measures adopted by the authorities in response to the crisis. Thus, in the opinion of the authors, the financial performance can be quantified according to the capacity of the resources to satisfy the financial needs, in an equitable measure, based on the allowed access, in the presence of protection against financial risk and through the sustainable consumption of resources. We propose to develop a model for assessing financial performance under uncertainty based on the consumption vector represented by the average monthly cost felt by the employer. The methods used are prospective (literature study) and analytical (consolidation of a Romania-Moldova parallel database for relevant macroeconomic indicators: active population, Total state companies' revenues of, Number of state companies, Number of employees, Total national income). The results of the study materialize in the assessment of economic development patterns influencing financial performance by creating parallel correlations with effect in delineating the influences of endogenous and exogenous factors on the financial performance of the two countries.

Keywords

• financial performance
• analysis
• econometric model