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The Relationship Between The Degree Of Compliance With The Corporate Governance Code And Organizational Performance: A Study On Romanian Firms

Author

Listed:
  • CORINA GAVREA

    (Babes-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, Romania)

  • ROXANA STEGEREAN

    (Babes-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, Romania)

  • ANAMARIA MARIN

    (Babes-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, Romania)

Abstract

The companies listed on the Bucharest Stock Exchange (BSE) are required to adopt the BSE Corporate Governance Code on comply or explain basis. Previous studies of the relationship between the compliance and organizational performance have found a weak ling. In this study we constructed a Corporate Governance Index based on the “Apply or Explain” reports of the listed companies on the BSE. We showed that the Index is significant and negatively correlated with firm performance measured using ROA and ROE as dependent variables. Also the index proved to be significantly correlated with the size of the board of directors.

Suggested Citation

  • Corina Gavrea & Roxana Stegerean & Anamaria Marin, 2013. "The Relationship Between The Degree Of Compliance With The Corporate Governance Code And Organizational Performance: A Study On Romanian Firms," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    • Handle: RePEc:bbn:journl:2013_1_2_gavrea
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    File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_1_2013.pdf
    File Function: Revised version, 2012
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    References listed on IDEAS

    as
    1. Demirgüç-Kunt, AslI & Detragiache, Enrica & Tressel, Thierry, 2008. "Banking on the principles: Compliance with Basel Core Principles and bank soundness," Journal of Financial Intermediation, Elsevier, vol. 17(4), pages 511-542, October.
    2. Elizabeth de Almeida Neves Di Beneditto & Raimundo Nonato Sousa da Silva, 2008. "Analysis of the Disclosure Level by Brazilian Financial Institutions Following the Basel Capital Accord (Basel II) – A multiple case study," Brazilian Business Review, Fucape Business School, vol. 5(3), pages 181-197, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    organizational performance; corporate governance; board duality; gender diversity; board structure;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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