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Journal of Public Administration, Finance and Law (JOPAFL) Issue 5/2014, Pp Journal of Public Administration, Finance and Law JOURNAL OF PUBLIC ADMINISTRATION, FINANCE AND LAW Special Issue 2/2015 1 Journal of Public Administration, Finance and Law EDITORIAL BOARD Editor in Chief: Mihaela ONOFREI, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Managing Editor: Tudorel TOADER, Alexandru Ioan Cuza University of Iaşi, Faculty of Law Assistant Editors: Sorin Gabriel ANTON, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Ana Maria BERCU, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Elena CIGU, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Florin OPREA, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Ada Iuliana POPESCU, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Mihaela TOFAN, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Administrative editors: Dan LUPU, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Mihai Bogdan PETRIŞOR, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Scientific Advisory Board: Paolo ANDREI, University of Parma Gabriela-Victoria ANGHELACHE, Academy of Economic Studies, Bucharest Stefano AZZALI, University of Parma Braduț-Vasile BOLOȘ, Petru Maior University, Targu Mures, Faculty of Economics Ionel BOSTAN, Stefan cel Mare University of Suceava, Faculty of Economics and Public Administration Daniela CORODEANU-AGHEORGHIESEI, Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Adrian FLOREA, University of Oradea, Faculty of Economics Călin Emilian HINŢEA, Babeș-Bolyai University of Cluj Napoca, Faculty of Political, Administration and Communication Sciences Nicolae ISTUDOR, Academy of Economic Studies, Bucharest Corina LAZAR, National School of Political Studies and Public Administration, Bucharest Ani MATEI, National School of Political Studies and Public Administration, Bucharest Claudia Olimpia MOISA, 1 Decembrie 1918 University of Alba Iulia, Faculty of Sciences Alunica MORARIU, Stefan cel Mare University of Suceava, Faculty of Economics Ruxandra Irina POPESCU, Academy of Economic Studies, Bucharest, Administration and Public Management Faculty Marius PROFIROIU, Academy of Economic Studies, Bucharest, Administration and Public Management Faculty Eugeniu ŢURLEA, Academy of Economic Studies, Bucharest Giovanni VERGA, University of Parma Georgeta VINTILA, Academy of Economic Studies, Bucharest Aysen WOLFF, Istanbul Arel University, Faculty of Economic and Administrative Sciences Special Issue 2/2015 2 Journal of Public Administration, Finance and Law CONTENTS PUBLIC ADMINISTRATION 5 WHAT ABOUT MUNICIPAL STRATEGIC MANAGEMENT AND PERFORMANCE 7 MEASUREMENT Krister BREDMAR INNOVATIVE PUBLIC MARKETING AS INSTRUMENT FOR CREATING THE SOCIAL VALUE 21 Ani MATEI Corina-Georgiana ANTONOVICI Carmen SĂVULESCU FINANCE 35 THE POTENTIAL OF THE DEBT RATIO IN THE PREDICTION OF CORPORATE BANKRUPTCY Daniel BRÎNDESCU-OLARIU 37 MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH 46 Dumitru-Nicușor CĂRĂUȘU THE ENGLAND REAL ESTATE MARKET – A QUANTITATIVE ANALYSIS 61 Sabina Andreea CAZAN AN ANALYSIS OF THE FACTORS INFLUENCING THE DEMAND FOR CATASTROPHE INSURANCE 69 Cristina CIUMAŞ Ramona Alexandrina COCA HOW SHOULD A FISCAL UNION FOR EMU LOOK LIKE? 79 Florin-Alexandru MACSIM WORKING CAPITAL AND CORPORATE STRATEGY PATTERNS IN WORKING CAPITAL OF ROMANIAN PHARMACEUTICAL COMPANIES QUOTED ON BUCHAREST STOCK EXCHANGE Alin Constantin RĂDĂŞANU 89 APPLICABILITY OF VALUE AT RISK ON ROMANINAN CAPITAL MARKET 104 Paula Andreea TERINTE LAW 113 AN INVENTORY OF SOME CRIMINAL PROVISIONS OF MITIGATING VALUE REGULATED BY THE ROMANIAN CRIMINAL SPECIAL LAWS 115 Mihai DUNEA Special Issue 2/2015 3 Journal of Public Administration, Finance and Law CONSIDERATIONS ABOUT DRAFTING ARBITRATION CLAUSES 125 Diana-Loredana HOGAS GOOD FAITH IN GREEK CIVIL CODE 133 Emanuela IFTIME THE CONTRIBUTION OF LEGAL FORMALISM IN THE CHANGES OF THE ROMANIAN LEGAL SYSTEM PAST 1989 142 Mihai LUPU PRESENT STATUS OF FREEDOM OF EXPRESSION UNDER THE NEW ROMANIAN LEGAL ORDER 150 Carmen MOLDOVAN CONSIDERATIONS ON THE EUROPEAN ARREST WARRANT 157 Rodica PANAINTE CONSIDERATIONS REGARDING THE DECLARATION OF ENFORCEMENT 165 Nicolae-Horia ȚIȚ THEORETICAL OUTLINES OF COMPARATIVE LAW METHODOLOGY 174 Ionuț TUDOR THE FORMATION OF INSTITUTIONAL FOUNDATIONS OF LOCAL SELF-GOVERNMENT AUTHORITIES FUNCTIONING IN UKRAINE AS THE ENTITIES OF CIVIL PROTECTION IMPLEMENTATION 181 Sergey ANDREEV FORMATION OF STATE REGIONAL POLICY IN UKRAINE SUBJECT TO EUROPEAN EXPERIENCE 195 Mykola IZHA Andrii MAIEV SOCIOECONOMIC INEQUALITIES IN SELF-PERCEIVED HEALTH IN ROMANIA 209 Andreea-Oana IACOBUŢĂ Livia BACIU Alina-Măriuca IONESCU Gabriel Claudiu MURSA Special Issue 2/2015 4 Journal of Public Administration, Finance and Law PUBLIC ADMINISTRATION Special Issue 2/2015 5 Journal of Public Administration, Finance and Law Special Issue 2/2015 6 Journal of Public Administration, Finance and Law WHAT ABOUT MUNICIPAL STRATEGIC MANAGEMENT AND PERFORMANCE MEASUREMENT Krister BREDMAR School of Business and Economics, Linneaus University Kalmar, Sweden [email protected] Abstract: The purpose with this paper is to study how environmental uncertainty affects strategic priorities and to what extent the strategic priorities could be monitored through performance measures, within a Swedish municipal context. The findings show that in some areas, such as a budget in balance and cost control, there are traditional priorities and performance measures, whereas in other areas such as monitoring day-to-day improvements and growth and expansion, there is less support from performance measurement systems. Keywords: Strategic areas, municipal CFOs, performance measurement INTRODUCTION It is from time to time stated that the single most important task for management is strategy (Macintosh, 1994). In a classical manner this comes down to two different tasks, i.e. formulating a strategy and implementing a strategy (Andrews, 1971). The latter task is usually integrated with management control ideas where historically important authors like Anthony (Anthony, 1965) places management control in the area in-between strategy and operations in an organizational hierarchy. Still today, even though the first thoughts in line with the above reasoning, is dated around the second world war and was fist fostered at Harvard Business School (Merchant, 1989), there is an interest in what circumstances that contributes to the strategic thinking in organizations and to what extent that impacts strategic actions. In this context modern performance measurement and management ideas have come to grow and it has had a natural impact on how systems and models have been developed. Even though performance measurement and management ideas in its contemporary form could be traced back 50 years in time, there have been two developments that have triggered the interest in the research community. Firstly there has been an increased technological development especially around the ability to store and present data and information in a never-ending capability. This has made it even more important to really understand what information is needed since there is more or less an infinite supply of data in larger organizations. Secondly there has been an increased interest in broader information as well as in financial reporting, a trend that could be described as a consequence of the relevance lost debate in general and the balanced scorecard models been developed in particular. New information needs have been named and the information market has become even more demand oriented. Much of the Special Issue 2/2015 7 Journal of Public Administration, Finance and Law development that is happening today comes from the industry and very few new ideas come from public administration in general and municipal organizations in particular. Over some time now there has been a transfer of management ideas from the industry to public sector, which has come to be summarized in the concept New Public Management. Since the public administration in many ways is an even more complex operation to manage, due to several different stakeholders and due to huge volumes handled, there is a possibility to use resources in a more effective way, if effective management tools are used. In this study effectivity is about measuring to what extent an operation is reaching its goals. As a consequence performance measurement comes down to being able to follow how well a strategy is implemented, and if the goals are reached. In a way, this also defines the purpose behind developing extensive measurement systems, and that is to be able to measure how well the organization is fulfilling its strategic intent and purpose. This paper focuses on strategic management in a municipal context. Since two basic tasks are formulating and implementing a strategy, this is also of interest in this paper. This interest could be formulated into three questions; [1] in what areas does municipal CFOs consider uncertainty?; [2] in what areas are there strategic focuses?; and [3] in what ways is it possible to follow performance? In this way, strategic management is understood as being conscious of uncertainties, making strategic priorities and then measuring performance. Even though much
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