The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital

Economic and financial analysis plays a crucial role in evaluating company performance, significantly impacting financial and operational strategies. For example, for foreign capital companies, such as many Italian firms operating in Romania, financial analysis aids in navigating economic and regula...

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Main Author: Andreea-Roxana Crocnan
Format: Article
Language:English
Published: Institutul de Studii Financiare 2025-05-01
Series:Revista de Studii Financiare
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Online Access:https://revista.isfin.ro/wp-content/uploads/2025/01/5.-Crocnan-Andreea.pdf
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author Andreea-Roxana Crocnan
author_facet Andreea-Roxana Crocnan
author_sort Andreea-Roxana Crocnan
collection DOAJ
description Economic and financial analysis plays a crucial role in evaluating company performance, significantly impacting financial and operational strategies. For example, for foreign capital companies, such as many Italian firms operating in Romania, financial analysis aids in navigating economic and regulatory challenges, managing risks, and optimizing resources. It is essential for assessing profitability, liquidity, and solvency, as well as for making comparisons across different markets or international subsidiaries. The role of Italian capital in Romania has been substantial, particularly in the manufacturing and banking sectors. Beyond direct economic contributions, Italian capital has introduced managerial and technological know-how, crucial for modernizing local companies. The economic and financial analysis of these investments reflects both the positive contributions, and the challenges faced, such as bureaucracy and legislative instability, which can affect long-term financial performance. Furthermore, the definition and classification of economic and financial analyses provide a conceptual framework for evaluating company performance. These analyses can be categorized by objectives (profitability, liquidity, solvency, activity) or methodology (vertical, horizontal, trend, comparative analysis), with each type offering essential perspectives on a company’s financial health. Thus, economic and financial analysis is a vital tool not only for understanding current financial positions but also for future planning, serving as a key determinant for the success of companies, including those with foreign capital.
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spelling doaj-art-38d94413bc1a453a9218ba83cb8d5bbf2025-08-20T03:56:42ZengInstitutul de Studii FinanciareRevista de Studii Financiare2537-37142559-13472025-05-0110189110110.55654/JFS.2025.10.18.05The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian CapitalAndreea-Roxana Crocnan0West University of Timișoara, Timișoara, RomaniaEconomic and financial analysis plays a crucial role in evaluating company performance, significantly impacting financial and operational strategies. For example, for foreign capital companies, such as many Italian firms operating in Romania, financial analysis aids in navigating economic and regulatory challenges, managing risks, and optimizing resources. It is essential for assessing profitability, liquidity, and solvency, as well as for making comparisons across different markets or international subsidiaries. The role of Italian capital in Romania has been substantial, particularly in the manufacturing and banking sectors. Beyond direct economic contributions, Italian capital has introduced managerial and technological know-how, crucial for modernizing local companies. The economic and financial analysis of these investments reflects both the positive contributions, and the challenges faced, such as bureaucracy and legislative instability, which can affect long-term financial performance. Furthermore, the definition and classification of economic and financial analyses provide a conceptual framework for evaluating company performance. These analyses can be categorized by objectives (profitability, liquidity, solvency, activity) or methodology (vertical, horizontal, trend, comparative analysis), with each type offering essential perspectives on a company’s financial health. Thus, economic and financial analysis is a vital tool not only for understanding current financial positions but also for future planning, serving as a key determinant for the success of companies, including those with foreign capital.https://revista.isfin.ro/wp-content/uploads/2025/01/5.-Crocnan-Andreea.pdfeconomic and financial analysisitalian investmentscompany performanceinvestment impactromania`s economy
spellingShingle Andreea-Roxana Crocnan
The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital
Revista de Studii Financiare
economic and financial analysis
italian investments
company performance
investment impact
romania`s economy
title The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital
title_full The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital
title_fullStr The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital
title_full_unstemmed The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital
title_short The Impact of Financial Analysis and Foreign Investments on the Romanian Economy: A Case Study on Italian Capital
title_sort impact of financial analysis and foreign investments on the romanian economy a case study on italian capital
topic economic and financial analysis
italian investments
company performance
investment impact
romania`s economy
url https://revista.isfin.ro/wp-content/uploads/2025/01/5.-Crocnan-Andreea.pdf
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