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Article
CLARIFYING THE IMPACT OF SANCTIONS ON FINANCIAL INDICATORS IN TRANSPORTS. AN EMPIRICAL COMPARATIVE ANALYSIS USING THE DISCRIMINANT MODEL13
Kamer-Ainur Aivaz, Ionela Munteanu, Mircea-Iosif Rus, Alina Chiriac (Matei), Florina Leta (Mihai)
ABSTRACT: This study investigated to what extent the number of sanctions imposed for non-compliance with transport activities could influence the financial indicators reported by Romanian freight companies. The analysis was carried out on a data set of 31,883 official financial reports of Romanian active transport companies in 2021. The financial indicators reported by the sample companies were analyzed in relation to 16,240 sanctions issued by the authorities for non-compliance with transport. The sanctions referred to nonconformity of licensing regulation (LREG), driver safety, rest and remuneration (DSRR), and truck overloading regulations (OLR). 2021 was an important year for analysis, combining the challenges of the pandemic with the linear continuation of control activities. Based on financial indicators' correlation analysis and discriminant methods, the study developed a series of projection scenarios that could statistically explain the impact of sanctions on financial reporting. The findings show that: (1) DSRR sanctions can have the greatest impact on company financial reporting; (2) DSRR and LREG sanctions tend to have a greater impact on labor force, job motivation, ROA, ROE, and fleet costs; (3) the projected scenarios did not achieve statistically significant results on the impact of OLR on financial reporting. Less influence was observed from the point of view of the reputation or interests of investors. The results are significant for regulators, transport companies, and future research.
KEYWORDS: transport non-compliance, financial reporting, sanctions analysis, discriminant method.
JEL classification: C38, D22, M20, M40.
13Acknowledgments: This paper was co-financed by the Bucharest University of Economic Studies during the PhD program.