The importance of accounting information in time of crisis: The Semiconductor Shortage as a result of the COVID-19 Pandemic and the impact on the Romanian Cable Manufacturing Subsector

Abstract

Accounting information plays a crucial role in the decision-making process given that the primary users of this information are predominantly the company's managers. Based on the financial condition, operating results, and cash flows stated within the financial statements, managers from the automotive sector had to redesign their strategies because of the COVID-19 Pandemic followed by the worldwide semiconductor supply shortage. This study aims to analyze the decisions taken by managers from the cable manufacturing subsector in Romania, based on the information provided by the financial statements in 2018-2021, considering the crisis that the automotive sector had to face since the global vehicle sales and production rates continued to be significantly below historic levels. The results show the negative effects and disruptions caused by the dual crisis in terms of profitability and performance that will probably affect the industry beyond 2022.