The Impact of Management Structures’ Composition on Performance of Companies listed on the Bucharest Stock Exchange

Georgeta Vintila and Raluca-Georgiana Moscu
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Raluca-Georgiana Moscu: The Bucharest University of Economic Studies

Romanian Statistical Review Supplement, 2015, vol. 63, issue 6, 12-25

Abstract: This paper presents several econometric models that explain how the performance of companies listed on the Bucharest Stock Exchange is influenced by corporate governance practices of listed companies comply how the principles and recommendations of the Corporate Governance Code of the Bucharest Stock Exchange. They raised issues related to the composition and size of the Board of Directors. The research proposes a brief description of the characteristics governing bodies of companies listed on the Bucharest Stock Exchange in 2010-2013, and their impact on corporate performance. The research methodology consists of estimating regression coefficients of the regression models of panel data, using E-views program and identifying the relationships established between corporate performance and some board characteristics (there is a balance between executive and non-executive members, Board size, existence of independent members, existence of the committees / advisory boards – Nomination Committee, Remuneration, Audit) or the relationships between the existence of Board Committees and composition of Board of Directors (the existence of a balance between executive and non-executive members and the existence of independent members). The analysis results for companies listed on the Bucharest Stock Exchange is observed that the variable which shows a balance between executive and non-executive directors has a positive impact on the existence of the Audit Committee, Remuneration Committee, which confirms Recommendation 29 and Recommendation 22 of the Code of Governance BSE. The relationship established between the variable that shows the existence of the independent and performance of the company is negative, and the existence of a balance between executive and non-executive members and positive net margin rate.

Keywords: corporate governance; corporate performance; non-executive members; independent members; Nomination Committee; Audit Committee; Remuneration Committee (search for similar items in EconPapers)
JEL-codes: C5 G30 G32 G38 (search for similar items in EconPapers)
Date: 2015
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