NEW TRENDS IN CORPORATE GOVERNANCE OF PUBLIC SECTOR

Cosmin Sandu Badele and Daniela Fundeanu
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Cosmin Sandu Badele: University of Craiova Faculty of Economics and Business Administration
Daniela Fundeanu: University of Craiova Faculty of Economics and Business Administration

Annals of University of Craiova - Economic Sciences Series, 2014, vol. 2, issue 42, 51-56

Abstract: In Romania, rebuilding the system of corporate governance has been a major component of the reform, although its awareness developed gradually and relatively late, driven on one hand by the accumulation of evidence of inefficiency of the system of corporate governance of state-owned enterprises, and on the other hand by the increased activism of shareholders. Corporate management is a multi-tiered approach on the relationships between interest groups (employees, managers, shareholders, business partners, regulatory bodies, the general public and the media). Thus corporate governance includes relationships which are established between the Board of Directors and internal or external stakeholders. Corporate governance has its origins in the corporation bankruptcy laws and mechanisms from each country and in the mechanisms of judicial sanction, which set the basic rules of the internal relationships between various participants in a corporation. The concept of governance (corporate) has been used in national institutions, commercial organizations, but also in the administration of the colonies and occupied territories. Subsequently, the concept of corporate governance has been developed in the private sector and was picked up and applied in most areas of activity. In recent years it has expanded rapidly, especially in the public sector. The term corporate leadership appeared in common parlance in the 1970 in the United States of America in the midst of the Watergate scandal when it was discovered the American companies involvement in politics through contributions to various political parties. The importance of this study is based on a correct approach that can lead to a managerial and organizational system with immediate, positive impact. Therefore it can offer the chance of bringing together the interests of all parties in order to lead a company to an uptrend. Good corporate governance adds value to listed entities and contributes to reducing the cost of capital, thus assuring an effective financing of the tenderers.

Keywords: Corporate Governance; public institutions; national economy; public domain; interested parties financial or non-financial (search for similar items in EconPapers)
JEL-codes: M41 M42 (search for similar items in EconPapers)
Date: 2014
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