THE LINK BETWEEN CORPORATE GOVERNANCE AND PERFORMANCE - EVIDENCE FROM ROMANIA

Abstract

The new global economy has brought with time changing expectations that society as a whole, has from a company, which resulted in diversification and growth of its responsibilities towards all categories of stakeholders. Globalization currently leads a radical change in the corporate landscape, as nowadays, to achieve success in business companies must be aware that the social and environmental effects of their activities affect stakeholders and especially the shareholders. Good corporate governance is an important step in building a market confidence and to encourage long-term investment flows. In many countries the implementation of corporate governance practices is seen as a way to improve economic dynamism, thereby improving overall economic performance. The current study is trying to establish the existence or non-existence of o link between the application of corporate governance principles and financial performance on the Romanian capital market.

Keywords

• corporate governance
• perfromance
• bvb