Economics at your fingertips  


Octav Neguriå¢ä‚

Journal of Applied Economic Sciences, 2012, vol. 7, issue 2(20)/ Summer 2012, 157-163

Abstract: The research conducted by the banking system financial audit revealed major financial scandals that rocked the business world and created a chain reaction, litigation and social convulsions, failed investments, plus tens of thousands of unemployed. Bad loans speculate principle disregarded by economists, namely, that although man is a rational being and should act as such in economic decisions, their behavior differs depending on the amounts at stake and the position that are. Financial stability or profitability is threatened by the economic conditions of the industry or operating entity. In this context, we can include negative recurrent cash flows, resulting from the inability to generate operating cash flows, while also reporting increases in earnings. Also, we can add the existence of excessive pressure on the leaders of banking companies from the requirements or expectations of third parties. All these factors can be classified according to three conditions of the fraud, such as: incentives / pressures, opportunities, attitudes/reasons. Some of these risk factors occur when there are distortions in the misappropriation of assets. Thus, bankers are scrambling to get as much, to as many, and the State was involved in this business in his way. Watching the similarity of the global market economy and the public square, the country, we can say that it is, always, a well organized group, only one crew member being in sight. Each investor seems to have a chance, because he participated willingly, notwithstanding the publicity and the border state. One thing is certain: for the big banks to collapse, they need some "help".

Keywords: capital; incertitude; profitability; risk; investment (search for similar items in EconPapers)
JEL-codes: F33 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Applied Economic Sciences is currently edited by Laura Stefanescu

More articles in Journal of Applied Economic Sciences from Spiru Haret University, Faculty of Financial Management and Accounting Craiova Contact information at EDIRC.
Series data maintained by Laura Stefanescu ().

Page updated 2017-09-29
Handle: RePEc:ush:jaessh:v:7:y:2012:i:2(20)_summer2012:p:157