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Corporate Governance and Related Parties Transactions - Evidence from Romanian Listed Companies

Author

Listed:
  • Iuliana Oana MIHAI

    (“Dunarea de Jos” University of Galati, Romania)

  • Riana Iren RADU

    (“Dunarea de Jos” University of Galati, Romania)

  • Violeta ISAI

    (“Dunarea de Jos” University of Galati, Romania)

Abstract

The objective of this work is to offer contributions to improve the understanding of related party transactions. Our goal is to explore the role of related party transactions from the perspective of company’s corporate governance environment. Even though there is a growing interest in related party transactions, there is little academic literature to understand the nature of related party transactions and their economic consequences. Our study was conducted on a sample of 40 companies listed companies on Bucharest Stock Exchange activating in manuafacuring sector. Our objective was to analyse the way the companies follow the requirements of transparency of related party transaction. Based on our observations on companies’ financial reports and companies web-sites, the level of transparency between these companies was reflected by an index estimated from producers’ scores on Likert-type scales (one to five) that showed to what extent they disclose or not disclose information such as relationship between parents and subsidiaries, key management personnel compensation, the value of transactions with related parties or separate disclosure for the group entities.

Suggested Citation

  • Iuliana Oana MIHAI & Riana Iren RADU & Violeta ISAI, 2017. "Corporate Governance and Related Parties Transactions - Evidence from Romanian Listed Companies," Proceedings RCE 2017, Editura Lumen, vol. 0, pages 124-134, November.
    • Handle: RePEc:lum:progal:v::y:2017:p:124-134
    DOI: https://doi.org/10.18662/lumproc.rce2017.1.10
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    References listed on IDEAS

    as
    1. Bava Fabrizio & Gromis di Trana Melchiorre, 2016. "Disclosure on Related Party Transactions: Evidence from Italian Listed Companies," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 6(2), pages 119-150, July.
    2. Robert W. McGee, 2008. "Corporate Governance in Transition Economies," Springer Books, in: Robert W. McGee (ed.), Corporate Governance in Transition Economies, chapter 1, pages 3-20, Springer.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Cristinel CONSTANTIN & Adrian MICU, 2018. "A benchmarking analysis of the economic development in Romania and Czech Republic," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 76-85.
    2. Lioara-Veronica PASC & Camelia-Daniela HATEGAN, 2021. "Reporting Significant Transactions with Affiliated Parties of Listed Companies on Stock Exchange," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 19(162), pages 359-359, May.

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    More about this item

    Keywords

    related party; corporate governance; financial reports. Title of Book: Risk in Contemporary Economy;
    All these keywords.

    JEL classification:

    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate

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