CORPORATE GOVERNANCE

Dinu Eduard

The AMFITEATRU ECONOMIC journal, 2008, vol. 10, issue 23, 257-259

Abstract: The different positioning of the stakeholders – shareholders, management, employees, suppliers, customers, banks etc. in relation with the company lead to the information asymmetry. Because of information asymmetry to valorize the privileged position of any entity inside the company (insiders) could generate major negative impact on the other involved parties. To avoid this situation, policies and mechanisms were identified in order to ensure the best practice by transparency and accuracy of the information provided by a company. Company’s management for the purpose of this best practice is called corporate governance. The corporate governance implementation generates major benefits to all involved parties as allows that right decisions are made at their level. The accurate and persistent implementation of the best practices below described is one of the key factors in achieving the strategic objective of the company as it allows the decreasing cost of the capital and rise of the share price on the capital market.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:aes:amfeco:v:10:y:2008:i:23:p:257-259

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