Annals of the University of Oradea: Economic Science (Jul 2020)
DO ROMANIAN COMPANIES AND THEIR STAKEHOLDERS BENEFIT FROM THE ADVANTAGES OF A GOOD CORPORATE GOVERNANCE? EMPIRICAL RESEARCH ON THE LEVEL OF COMPLIANCE
Abstract
Corporate governance is a topical subject interrelated with many other concepts such as financial performance and earnings management and also a topic of real interest especially to shareholders and potential investors, but also to other stakeholders. The advantages attributed to corporate governance (maximizing global and long-term financial performance, increasing transparency and investor confidence) are the impetus for carrying out the present paper by asking a question related to approaching the concept in our country and, more importantly, the extent to which the principles of corporate governance are applied practically. The specialized literature in Romania has been dealing intensely with the subject in recent years, both through theoretical and empirical studies. The present empirical research is carried out among the companies listed on the regulated market of the Bucharest Stock Exchange in 2017 for which we analyzed the Statement on compliance with the provisions of the Corporate Governance Code issued by the Bucharest Stock Exchange.The results show that 40% of the analyzed companies apply more than 75% of the principles of the Code regarding the responsibilities of the board of directors, the risk management system and the internal control, to the just reward and motivation and last but not least, to the relationship with investors, to transparency. Moreover, 66% of the analyzed companies apply over 50% of the principles. Comparing the results obtained with the results of other studies from the past, we appreciate a positive evolution of the corporate governance in Romania, obtaining for 2017 an average compliance score of 58% with growth prospects, considering the mentions regarding the implementation process of certain criteria stated by some companies. However, at EU level, Romania occupies the last positions in some aspects regarding corporate governance according to indicators published by the World Economic Forum.
