Corporate Governance in Romania - Current Trends

Abstract

The failures of large corporations like Enron, Parmalat, Arthur Andersen, or Marconi have demonstrated that inappropriate corporate governance can seriously affect both shareholders and other interest groups (creditors, investors, the state, employees, suppliers, customers), even in a developed market economy. These problems would have produced less negative effects if there were more effective ways of controlling and monitoring company management and transparency of their business.The aim of this article is to offer a better understanding of the current state of affairs in terms of corporate governance principles and their implementation in Romania, showcased comparatively via two established companies. On the base of these examples, we conclude by outlining a few priorities that could be taken into account for a better and faster implementation of such principles within the Romanian business field.

Keywords

• corporate governance
• stakeholders
• shareholders rights
• listed companies
• unlisted companies