CORPORATE GOVERNANCE IN DEVELOPING ECONOMIES: CASE STUDY OF A ROMANIAN TEXTILE COMPANY

Abstract

This article explores corporate governance issues like ownership structure, gender diversity accountability, risk management and internal audit at managerial level of a textile company listed on the Bucharest stock exchange. For this reason, secondary data was used as information collection tool. Results of the study underline the conclusion that, corporate governance is being implemented in companies belonging to the textile industry of Romania although correlated with some weaknesses. Analyzed documents confirm that the chosen textile company is trying to implement various accepted corporate governance policies, to stay competitive. The manufacturing processes were constantly improved involving a variety of techniques, with the purpose for diminishing environmental negative impact by eliminating waste. The board of directors as well as the top-management has a good understanding of the responsibilities for each member in order to ensure good corporate governance. The lack of a trade union could be the causative factor of wage inequality and loss of a stronger worker voice. Although the result of external constraints, we identified a process for constant enhancement of corporate governance in the company. The implementation of the code of corporate governance contributed to improvement in performance especially share value. Future research directions aimed extending the sample by selecting several other companies from different industries, for comparison.

Keywords

• Corporate governance
• Textile industry
• Owneship structure
• Accountability
• Director's remuneration
• Risk management
• Internal audit