INSTITUTIONAL AND LEGAL PREMISES OF THE CORPORATE GOVERNANCE IN LARGE LISTED ROMANIAN COMPANIES

Alina Badulescu and Pacala Anca ()
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Pacala Anca: University of Oradea, Faculty of Electrical Engineering and Information Technology

Annals of Faculty of Economics, 2013, vol. 1, issue 2, 243-252

Abstract: Corporate Governance has particular importance and relevance for the good management and governance of the companies. Even the disruption between the owners and the executives has been widely recognised since many decades, the frauds and manipulations we have witnessed in the 90s and later represent a turning point for both theoretical research and practical approaches in this matter. Moreover, for transition economies, the issue is much more relevant as many institutions involved in governance mechanisms have been emerged since then. As to reduce the differences between the interests of management and the shareholdersâ€(tm) ones, several mechanisms of external and internal control can be imposed. The paper discusses main recent developments and evolutions with reference to legal aspects and institutional aspects, specifically the development of the stock exchange. Selected indicators concerning Bucharest Stock Exchange are analysed for the period 1995 (re-opening of the Stock Exchange after political transformations in the 90s), e.g.: number of companies, number of transactions with shares, capitalisation, number of issuing companies, number of new issuing companies. As for legal aspects, we have analysed both Romanian legislation and the Corporate Governance Code of the Bucharest Stock Exchange, and international reports on implementation of Corporate Governance in Romania, particularly OECD Report Corporate Governance in Romania (2001) and World Bank Report on the Observance of Standards and Codes (2004). Investigating the legal framework and the evolutions registered, we can conclude on the role of the above-mentioned mechanisms and on further developments and improvements necessary to enhance corporate governance mechanisms and ensure companies‘compliance to these requirements. Moreover, as we will show, Bucharest Stock Exchange has known since its creation in 1995 times of development and consolidation, in terms of number and value of transactions, capitalization etc.

Keywords: corporate governance; stock exchange; legal aspects; Romania (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2013
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