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Do Corporate Governance “Actors”’ Features Affect Banks’ Value? – Evidence From Romania

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  • Stefanescu Cristina Alexandra

    (Babeº-Bolyai University, Cluj-Napoca, Romania)

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    Abstract

    The purpose of our empirical study is to identify and discuss the influences of various features of corporate governance “actors” over strategies followed and performances reached in Romanian banking system. The features considered for analysis refers to provenience, size, independence and gender diversity of executive management and board of directors, as well as to provenience, structure, origin and concentration of shareholders. The research methodology used for achieving our goal is based on econometric analysis using various statistical tools, like correlations for identifying the relationships between independent and dependent variables, and regressions for developing the models revealing how corporate governance characteristics influence banks value and their business strategy. The results of the performed analysis reveal positive correlations between banks’ traditional strategies and performances, and foreign corporate governance (board of directors, executive management and shareholders), made majority by male members, where CEO duality avoidance is ensured, the board of directors is entirely independent and the majority of shareholders are coming from European Union members states. The only negative correlation appeared to be between shareholders structure and banks value, revealing that those banks that still have individuals within its ownership performed lower.

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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/6211Stefanescu.pdf
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    Bibliographic Info

    Article provided by Lucian Blaga University of Sibiu, Faculty of Economic Sciences in its journal Studies in Business and Economics.

    Volume (Year): 6 (2011)
    Issue (Month): 2 (August)
    Pages: 136-150

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    Handle: RePEc:blg:journl:v:6:y:2011:i:2:p:136-150

    Contact details of provider:
    Postal: Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania
    Phone: 004 0269 210375
    Fax: 004 0269 210375
    Email:
    Web page: http://economice.ulbsibiu.ro/
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    Related research

    Keywords: corporate governance; banking; performance; Romania;

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