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Correlation Between Corporate Governance Characteristics And Financial Performance Of The Companies

Author

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  • Ana Maria Alexie

    (University of Craiova Faculty of Economics and Business Administration Craiova, Romania)

Abstract

Being considered an important instrument in ensuring prosperity of the companies, the corporate governance represents a topic which has aroused interest of numerous disciplines. The aim of this work is to study the relationship between governance characteristics and the financial performance Exchange (Return On Assets (ROA) and the Return On Equity (ROE) ) of the entities listed on Bucharest Stock (BVB). The research is carried out on a sample of 31 companies, during 3 years (2016-2018). The results of this analysis indicate a positive relationship existence between the variable represented by the dimension of the Management, and the performance of the companies expressed through ROA and ROE. A positive relationship has been obtained between the compliance rank with the Corporate Governance Code (CGC) and the financial performance of the entities listed.

Suggested Citation

  • Ana Maria Alexie, 2020. "Correlation Between Corporate Governance Characteristics And Financial Performance Of The Companies," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(48), pages 5-16, August.
    • Handle: RePEc:aio:aucsse:v:1:y:2020:i:48:p:5-16
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    File URL: http://feaa.ucv.ro/AUCSSE/0048v1-001.pdf
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    References listed on IDEAS

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    1. Geoffrey C. Kiel & Gavin J. Nicholson, 2003. "Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(3), pages 189-205, July.
    2. Paula L. Rechner & Dan R. Dalton, 1991. "CEO duality and organizational performance: A longitudinal analysis," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 155-160, February.
    3. Paul Guest, 2009. "The impact of board size on firm performance: evidence from the UK," The European Journal of Finance, Taylor & Francis Journals, vol. 15(4), pages 385-404.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    corporate governance; performance; return on equity; return on assets; companies listed;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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