The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania

Tatiana Dănescu, Ioan-Ovidiu Spătăcean, Maria-Alexandra Popa and Carmen-Gabriela Sîrbu
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Tatiana Dănescu: Faculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Târgu Mureș, 540142 Târgu Mureș, Romania
Ioan-Ovidiu Spătăcean: Faculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Târgu Mureș, 540142 Târgu Mureș, Romania
Maria-Alexandra Popa: Faculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Târgu Mureș, 540142 Târgu Mureș, Romania
Carmen-Gabriela Sîrbu: Faculty of Economic Sciences, Danubius University of Galati, 800654 Galați, Romania

Sustainability, 2021, vol. 13, issue 19, 1-14

Abstract: In the context of the globalization and internationalization of economies, to efficiently attract financial and intellectual capital that is necessary for business sustainability, the mechanisms of corporate governance have to be based on gaining the trust of all the interested parties. These objectives require an organizational culture and a climate which is based on correctness, responsibility, transparency, and efficiency, in which ethical principles govern the spread of behaviors in the entire entity. This research identifies the relation between the corporate governance and the entities’ financial performance using the specific context of Romania. The findings of this study reveal new insights on the corporate governance and financial performance based on a sample of companies listed on the Bucharest Stock Exchange. The results show a positive correlation between the net accounting results, earnings per share, and the duality of the CEO, and a negative correlation between price per share and the duality of the CEO.

Keywords: corporate governance; financial performance; transparency; sustainable financial reports; board of directors effectiveness; emerging markets; OLS; Bucharest Stock Exchange (BSE) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:19:p:10494-:d:640361

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