DEVELOPING COUNTRIES AND CORPORATE GOVERNANCE. THE CASE OF ROMANIA

Abstract

During the past years, developing countries have become extremely interesting for researchers, as well as for capital investors. Dominated by growth and industrialization, but lacking macroeconomic indicator stability or sufficiently mature financial markets, these countries make it acutely necessary to identify measures that will stimulate foreign investors to invest and that will ensure the financial stability for SMEs. One such measure is increasing the quality of corporate governance at the level of small and medium-sized enterprises, where it is currently almost absent. This article aims to help raise awareness of the need to implement good corporate management practices at the level of companies in developing countries and especially in Romania. This paper uses a questionnaire in order to evaluate the state of the corporate governance in Timis county and offers some suggestions on what should be done for a higher corporate governance quality in the case of small and medium-sized companies in Romania, with the purpose of establishing a connection between governance quality and business performance of SMEs

Keywords

• corporate governance
• protection of minority investors
• information asymmetry
• SME