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The Inter-conditioning between Corporate Governance and Financial Performance

Author

Listed:
  • Tatiana DANESCU

    (University of Medicine, Pharmacy, Science and Technology of Targu Mures, Romania)

  • Maria-Alexandra POPA

    (University "1 Decembrie 1918" of Alba Iulia, Romania)

Abstract

The current economic context, as well as previous research, highlights the importance of corporate governance over the financial performance expected by companies. Therefore, the study of the current practices in the field of corporate governance, the impact that it has on the results of the companies, but also vice versa - the identification if the financial performance achieved puts its mark on the degree of compliance with the requirements established for good corporate governance - is a representative approach in opening new priorities for the interests of companies. This is the objective of the present research in which, applying quantitative research methods, the authors tested some hypotheses that demonstrate the corporate governance and the financial performance causality of companies on the Romanian capital market.

Suggested Citation

  • Tatiana DANESCU & Maria-Alexandra POPA, 2020. "The Inter-conditioning between Corporate Governance and Financial Performance," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 18(159), pages 578-578.
    • Handle: RePEc:aud:audfin:v:18:y:2020:i:159:p:578
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    References listed on IDEAS

    as
    1. Dan LUPU & Andra NICHITEAN, 2011. "Corporate Governance And Bank Performance In Romanian Banking System," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 11(1(13)), pages 219-225, June.
    2. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 3-28, Winter.
    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. Boone, Audra L. & Casares Field, Laura & Karpoff, Jonathan M. & Raheja, Charu G., 2007. "The determinants of corporate board size and composition: An empirical analysis," Journal of Financial Economics, Elsevier, vol. 85(1), pages 66-101, July.
    5. Switzer, Lorne N., 2007. "Corporate governance, Sarbanes-Oxley, and small-cap firm performance," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(5), pages 651-666, December.
    6. Supriti Mishra & Pitabas Mohanty, 2018. "Does good governance lead to better financial performance?," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 9(4), pages 462-480.
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    More about this item

    Keywords

    emerging markets; corporate governance conformity; Corporate Governance Code; financial performance; Bucharest Stock Exchange;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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