Financial Reporting Quality and Operational Efficiency in the Coastal Region of Romania

Abstract

Working with large databases and selecting indicators for economic analysis purposes raises several challenges and concerns. This paper provides insights on how the choice of indicators in an analysis of reported financial statements may significantly influence the interpretation of the results. The study investigates a sample that includes indicators reported by a large number of companies in the coastal region of Romania. The rigor and compliance of financial reporting ensure the quality and accuracy of information and are key features for assessing sustainable development. The quantitative analysis and case study observation allowed us to capture divergencies in the evolution of financial indicators caused by nonconformities in the financial statements. This study provides an empirical perspective that can raise awareness of potential biases in financial reporting evaluation. The accuracy of financial data directly influences the soundness of managerial decisions and has a major impact on the economic efficiency strategy of companies.

Keywords

• nonconformity
• development
• empiric filtering
• financial reporting
• evaluation