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The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania

Author

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  • Tatiana Dănescu

    (Faculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Târgu Mureș, 540142 Târgu Mureș, Romania)

  • Ioan-Ovidiu Spătăcean

    (Faculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Târgu Mureș, 540142 Târgu Mureș, Romania)

  • Maria-Alexandra Popa

    (Faculty of Economics and Law, “George Emil Palade” University of Medicine, Pharmacy, Science and Technology of Târgu Mureș, 540142 Târgu Mureș, Romania)

  • Carmen-Gabriela Sîrbu

    (Faculty of Economic Sciences, Danubius University of Galati, 800654 Galați, Romania)

Abstract

In the context of the globalization and internationalization of economies, to efficiently attract financial and intellectual capital that is necessary for business sustainability, the mechanisms of corporate governance have to be based on gaining the trust of all the interested parties. These objectives require an organizational culture and a climate which is based on correctness, responsibility, transparency, and efficiency, in which ethical principles govern the spread of behaviors in the entire entity. This research identifies the relation between the corporate governance and the entities’ financial performance using the specific context of Romania. The findings of this study reveal new insights on the corporate governance and financial performance based on a sample of companies listed on the Bucharest Stock Exchange. The results show a positive correlation between the net accounting results, earnings per share, and the duality of the CEO, and a negative correlation between price per share and the duality of the CEO.

Suggested Citation

  • Tatiana Dănescu & Ioan-Ovidiu Spătăcean & Maria-Alexandra Popa & Carmen-Gabriela Sîrbu, 2021. "The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania," Sustainability, MDPI, vol. 13(19), pages 1-14, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10494-:d:640361
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