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

Author

Listed:
  • Marius Eugen ROGOZ

    (Bucharest University of Economic Studies)

  • Dragoș Andrei STOICA

    (Bucharest University of Economic Studies)

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.

Suggested Citation

  • Marius Eugen ROGOZ & Dragoș Andrei STOICA, 2024. "How Do Listed Romanian Companies Comply with or Explain Good Corporate Governance Guidelines?," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 5(7), pages 51-61, July.
    • Handle: RePEc:ahd:journl:v:5:y:2024:i:7:p:51-61
    DOI: 10.37945/cbr.2024.07.06
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    References listed on IDEAS

    as
    1. Monica-Violeta Achim & Sorin-Nicolae Borlea & Codruţa Mare, 2016. "Corporate Governance and Business Performance: Evidence for the Romanian Economy," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(3), pages 458-474, June.
    2. Iulia JIANU & Ionel JIANU, 2012. "The Told and Retold Story of Romanian Accounting," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 11(3), pages 391-423, September.
    3. K. J. Martijn Cremers & Vinay B. Nair, 2005. "Governance Mechanisms and Equity Prices," Journal of Finance, American Finance Association, vol. 60(6), pages 2859-2894, December.
    4. Arcot, Sridhar & Bruno, Valentina & Faure-Grimaud, Antoine, 2010. "Corporate governance in the UK: Is the comply or explain approach working?," International Review of Law and Economics, Elsevier, vol. 30(2), pages 193-201, June.
    5. Leona Achtenhagen & Petra Inwinkl & Jacob Björktorp & Robert Källenius, 2018. "More than two decades after the Cadbury Report: How far has Sweden, as role model for corporate-governance practices, come?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(4), pages 235-251, November.
    6. Shrives, Philip J. & Brennan, Niamh M., 2017. "Explanations for corporate governance non-compliance: A rhetorical analysis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 49(C), pages 31-56.
    7. Michail Nerantzidis, 2015. "Measuring the quality of the “comply or explain” approach: Evidence from the implementation of the Greek corporate governance code," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(4/5), pages 373-412, May.
    8. Iain MacNeil & Xiao Li, 2006. "“Comply or Explain”: market discipline and non‐compliance with the Combined Code," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(5), pages 486-496, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Romania; Bucharest Stock Exchange; corporate governance; index; comply or explain;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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