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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. |
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