Open Access Subscription Access
Corporate Governance Quality on Specific Case of Romanian Listed Companies
The purpose of this paper is to analyse the compliance of Romanian listed companies with corporate governance codes. From 2010, the "Comply or Explain" Statement, which discloses if and how the corporate governance principles are applied, became mandatory for all companies listed on Bucharest Stock Exchange (BSE). The methodology employed is based on the analysis of the above mentioned Statements published for the period 2009-2013. Research aims to present through a longitudinal and qualitative study the evolution of the compliance with the BSE Corporate Governance Codes. Most of the observed companies made a step forward in what concerns corporate governance principles and over the study period they disclosed more information on their statements. On the other hand, we found cases where the statements made over the studied period contained inconsistencies for some principles. The implementation of corporate governance rules ensures transparent decision-making, based on clear rules and objectives, and increases shareholders' confidence in the company.
Corporate Governance, Comply or Explain, Listed Companies, Emerging Economies, Romania.
- Abu-Nassar, M. and Rutherford, B.A. (1996) External users of financial reports in less developed countries: the case of Jordan. British Accounting Review, No. 28, pp. 73-87.
- Arnold, A. and Moizer, P. (1984) A survey of the methods used by UK investment analysts to appraise investments in ordinary shares. Accounting and Business Research, No. 14, pp. 195207.
- Bucharest Stock Exchange (2014) Press Release from 23. 12. 2014, available at: http://www.bvb.ro/AboutUs/MediaCenter/PressReleases.
- Campbell, K., Jerzemowska, M. & Najman, K. (2009) Corporate Governance Challenges in Poland: Evidence from “Complain or Explain” Disclosures. Corporate Governance: The International Journal of Business in Society, Vol. 9, No. 5, pp. 623-634.
- European Corporate Governance Forum (2006) Statement of the ECGF on the Comply-or-Explain Principle, available at: http://ec.europa.eu/internal_market/company/docs/ecgforum/ecgfcomplyexplain_en.pdf
- European Union (2013). Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC. Retrieved from: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32013L0034.
- Healy, P.M. and Palepu, K.G. (2001) Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. Journal of Accounting and Economics, Vol. 31, No. 1-3, pp. 405-440.
- Keay, A. (2014) Comply or Explain in Corporate Governance Codes: In Need of Greater Regulatory Oversight? Legal Studies, Vol. 34, No. 2, pp. 279-304.
- Lee, T.A. and Tweedie, D.P. (1975) Accounting Information: an investigation of private shareholder usage. Accounting Business Research, No. 6, pp. 280-291.
- Luo, Y. & Salterio, S. E. (2014) Governance Quality in a “Comply or Explain” Governance Disclosure Regime. Corporate Governance: An International Review, Vol. 22, No. 6, pp. 460481.
- Nedelchev, M. (2013) Good Practices in Corporate Governance: One-Size-Fits-All vs. Comply-orExplain. International Journal of Business Administration, Vol. 4, No. 6, pp. 75-81.
- Salterio, S. E., Conrod, J. E. D. & Schmidt, R. N. (2013) Canadian Evidence of Adherence to “Comply or Explain” Corporate Governance Codes: An International Comparison. CAAA/ACPC, Vol. 12, No. 1, pp. 23-51.
- Seidl, D., Sanderson, P. & Roberts, J. (2009) Applying “Comply-or-Explain”: Conformance with Codes of Corporate Governance in the UK and Germany. Centre for Business Research, University of Cambridge Working Paper No. 389.
- Strouhal, J., Gurvitš, M., Nikitina-Kalamäe, M. & Startseva, E. (2015) Finding the Link between CSR Reporting and Corporate Financial Performance: Evidence on Czech and Estonian Listed Companies. Central European Business Review, Vol. 4, No. 3, pp. 48-59.
Abstract Views: 118
PDF Views: 47