Governance and Performance in Romanian Energy Companies

Adrian Doru Bigioi () and Cristina Elena Bigioi
Additional contact information
Adrian Doru Bigioi: Department of Accounting and Audit, The Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, 010374 Bucharest, Romania
Cristina Elena Bigioi: Department of Economics, Faculty of Entrepreneurship, Business Engineering and Management, University Politehnica of Bucharest, 060042 Bucharest, Romania

Energies, 2023, vol. 16, issue 13, 1-22

Abstract: The energy sector is essential to a country’s economy and social life. In recent years, the energy market in Romania has experienced a certain dynamism, influenced by multiple factors such as regional conflicts, national and EU energy legislation, liberalization of the energy market, and increasing demand for energy products. These factors determined a sharp increase in electricity, gas, and oil prices in Romania in recent years. Based on the above, the present study aims to analyze Romanian energy companies’ financial performances and determine whether there is any correlation between their governance and their performance. In order to fulfill the research objectives, financial performance data were extracted and analyzed for a number of 43 energy companies in Romania, considering the financial statements prepared up to 31 December 2021. Using the scoring method, governance indices were determined for each company. Finally, using a linear regression model, we analyzed the correlation between governance and performance of the 43 companies. The results of the study indicate that there is a direct correlation of moderate intensity between the two variables, with the performance of energy companies being higher if they have implemented a governance system.

Keywords: energy companies; financial performance; corporate governance (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1996-1073/16/13/5041/pdf (application/pdf)
https://www.mdpi.com/1996-1073/16/13/5041/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:16:y:2023:i:13:p:5041-:d:1182555

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().