How Do Listed Romanian Companies Comply with or Explain Good Corporate Governance Guidelines?

Abstract

This study aims to present the main guidelines published by the Bucharest Stock Exchange regarding the general principles of corporate governance, as well as an analysis of the level of compliance with them by listed companies. Thus, the authors have developed a three-level corporate governance index by means of which the level of compliance with the guidelines published by the BVB can be measured. Following the analysis, the authors conclude that the score obtained by the analysed companies is positive, based on their level of compliance with most of the guidelines presented by the BVB. Moreover, companies in the Premium category have a higher level of compliance with the guidelines of the Code of Corporate Governance than other companies listed on the regulated market. From the perspective of future research, the authors aim to investigate whether corporate governance can influence a company’s financial performance.

Keywords

• romania
• bucharest stock exchange
• corporate governance
• index
• comply or explain