Michail Pazarskis

The purpose of this study is the examination of the financial fraud in Greek companies, listed on the Athens Exchange for the period of 2008-2015 during the economic crisis in Greece. The data of all the listed companies that were used comprise financial statements, reviews in the reports by the auditors and the figures and information based on the reports of the Athens Exchange. A total of twelve companies were found and they comprise the primary research sample with fraud in their financial statements (FFS), while another twelve companies were employed as a control sample (non-FFS) for various comparisons. From thirty financial ratios, several statistical tests to the sample and the control sample are applied in order to create a model that will use ratios as “predictors” in the analysis of financial statements for fraud. The model is accurate in classifying the total sample correctly with accuracy rates exceeding 90 percent. The results demonstrate that the model functions effectively in detecting FFS in a period of economic crisis and could be used as a tool to the banking system, from internal and external auditors and taxation or other state authorities.

In the aftermath of the financial crisis, many companies have implemented extensive risk management procedures. Additionally, internal audit has increasingly attracted the attention of managers as it constitutes the core of modern corporate governance. However, regarding Greek companies, there is a lack of empirical research on factors that affect risk management. Therefore, the purpose of the present paper is to analyze specific factors associated with effective risk management. Primary data were collected using questionnaires distributed to employees in companies that are listed on the Athens Exchange. Multiple regression analysis was conducted in order to examine the relationship between effective risk management, risk based internal audit, internal auditors’ involvement in risk management and top management support. Our findings demonstrate that the above factors contribute positively to effective risk management.

An investigation was conducted to study a sample of 23 Greek firms listed on the Athens Stock Exchange that underwent mergers from 2011 to 2015, which is a period that embodies the Greek economic crisis. For the investigation, the authors use statistical tests to explore relative changes at twenty accounting ratios of the sample firms. These ratios are computed for one year before and after the merger. These ratios are found to be statistically insignificant indicating firms do not experience a post-merger improvement in accounting performance. The authors also examine six qualitative variables representing merger characteristics as past managerial decisions. Important findings for these characteristics include the following. First, for companies that do not fall under the same production line, the researchers observe an improvement for three ratios: collection period ratio, return on total assets, and profit or loss before tax. Thus, liquidity and profitability are improved. Second, when companies merged with their subsidiaries, the authors discover significant improvement for two ratios: gross margin and collection period ratio. In brief, positive results are found for mergers with subsidiaries and negative results with others. Third, the payment method influences two ratios, the current ratio and the stock turnover ratio. The current ratio is affected positively for the transactions in cash and negatively for the transactions in shares, while the stock turnover ratio is affected negatively for cash transactions and positively for share transactions.

Merger transactions occur in various business sectors and are a drastic way of corporate restructuring. For several companies, mergers are the only path to gaining access to new resources, improving profitability, and achieving business excellence. The purpose of this study is to investigate the mergers that occurred among companies and reveal different aspects of their final results beyond the traditional and simple comparison methods of analysis. Thus, several merger events from Greek companies are tracked and compared by evaluating various accounting measures from their published financial accounts. The preliminary statistical results from univariate data analysis with accounting comparisons reveal no significant business performance changes after mergers. Then, the merger event is examined per company from each year’s released financial statements with a not used before proposed method of analysis: comparison of pre- and post-merger performance by employing a heat-map with a multi-step approach. The results showed that five companies out of eighteen examined present a deterioration on separate sections of accounting performance (profitability, capital structure, and leverage). While univariate statistical analysis of comparison in pre- and post-merger performance failed to signalize these differences, the heat-map methodology approach with a multi-step approach revealed them. The obtained results show important differences in the accounting performance of almost one-third (27.8%) from the examined sample companies. Thus, the findings reveal the usefulness of the new proposed approach in merger analysis.

This study deals with the governance and performance of utility companies following mergers in local government organizations (LGOs). It is demonstrated by using the municipal water supply and sewerage company in city of Serres as a case study of how the reform initiative known as “Kallikratis” has impacted Greek municipal water and sewerage companies. As a result of the Kallikratis Program, the municipalities were merged, and new data were added to the map of local government in Greece. The methodological approach entails surveying the economic analysis of raw data using a number of financial ratios (financial statements of the municipal company). The study’s findings demonstrate that the municipal company of Serres was able to plan the actions that resulted in an improvement of the majority of the examined ratios after merger events, despite the extra responsibilities and geographic areas that the Kallikratis Program added to the municipal companies and the reduction of the extraordinary subsidies as a result of the Greek debt crisis. Eleven of the fourteen ratios perform better than they did before the merger, while three of them actually perform worse (2011–2018). However, various and contradictory results about the evolution of these ratios are seen over the crisis era, as some of them initially show a partial improvement (in the midst of the economic crisis period), but then they gradually deteriorate by the end of the crisis.

The role of small and medium-sized enterprises (SMEs) in the modern economy is crucial, and they have emerged as the most alluring and inventive system. To investigate and assess SMEs’ operations, internal auditing was formed as an independent assessment. Internal auditors’ planning and implementation of a quality program of internal audits can result in several advantages to SMEs. The current study investigates how internal auditors might help SMEs become more competitive. To fulfill the study’s requirements, 200 employees of Greek SMEs who were relevant to the internal audit function in their business environment were invited to answer a questionnaire. Internal auditors are viewed positively by most of the (100) employees who responded. Ranging from 34% to 53% in part B of the questionnaire (the role of internal auditors), they strongly agree with the positive role of internal auditors in Greek SMEs. Regarding the evaluation of internal auditors, most respondents gave a relatively negative opinion. From 31% to 34% respondents in part C of the questionnaire (evaluation of internal auditors) agree a little with the positive evaluation of internal auditors in Greek SMEs. Furthermore, the results showed that internal auditors must be professionals, comprehend the audited activities in-depth, offer ways to remedy problematic activities, and voice their thoughts objectively to succeed in the competitiveness of Greek SMEs.