IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2011i1p616-621.html
   My bibliography  Save this article

Corporate Governance-The Role And Application Of The Principle Of Transparency

Author

Listed:
  • Fulop Melinda Timea

    (Babes Bolyai, ªtiinþe Economice ºi Gestiunea Afacerilor)

Abstract

The aim of the current research is to clarify the concept of 'corporate governance' as we believe it is a relatively new concept at national level. At the same time, our analysis focused on the manner in which the principle of transparency has been incorporated into the recommendations and regulations/provisions of the Bucharest Stock Exchange (Romanian: BVB) and how this principle has been applied by the companies listed with the BVB. In order to accomplish the objectives of our research, we adopted a deductive approach, from general to specific, by means of which we were able to combine qualitative with quantitative studies. Therefore, our approach started from the definition found within the principles of OECD according to which 'corporate governance' is the system by which companies are run and controlled. In Romania, the concept of 'corporate governance' was first advanced in 1999 by the Strategic Alliance of the Business Associations (Romanian: ASAA), which drew up a "Voluntary code of corporate governance" in association with the Confederation of Private Entrepreneurs in Timiº county and the Chamber of Commerce and Industry of Romania and Bucharest. Another facet of our research is the principle of transparency and the manner in which entities should put it to practice in order to ensure efficient corporate governance. To this effect, since the beginning of 2009 the entities listed with the BVB have been under obligation to report which recommendations of the new Corporate Governance Code have actually been implemented by the company in the current financial year by disclosing to BVB the "Comply or Explain" Statement. The findings of our research show that the concept of 'corporate governance' has lately been a matter for intense debate due to the famous financial failures in recent years. In 2009, Transelectrica was the only company in tier I of the BVB which filled in and submitted the "Comply or Explain" Statement. Therefore, we believe that Transelectrica should serve as a fine example for the entities listed with the BVB as regards the filling in and submitting of the said Statement.The aim of the current research is to clarify the concept of 'corporate governance' as we believe it is a relatively new concept at national level. At the same time, our analysis focused on the manner in which the principle of transparency has been incorporated into the recommendations and regulations/provisions of the Bucharest Stock Exchange (Romanian: BVB) and how this principle has been applied by the companies listed with the BVB. In order to accomplish the objectives of our research, we adopted a deductive approach, from general to specific, by means of which we were able to combine qualitative with quantitative studies. Therefore, our approach started from the definition found within the principles of OECD according to which 'corporate governance' is the system by which companies are run and controlled. In Romania, the concept of 'corporate governance' was first advanced in 1999 by the Strategic Alliance of the Business Associations (Romanian: ASAA), which drew up a "Voluntary code of corporate governance" in association with the Confederation of Private Entrepreneurs in Timiº county and the Chamber of Commerce and Industry of Romania and Bucharest. Another facet of our research is the principle of transparency and the manner in which entities should put it to practice in order to ensure efficient corporate governance. To this effect, since the beginning of 2009 the entities listed with the BVB have been under obligation to report which recommendations of the new Corporate Governance Code have actually been implemented by the company in the current financial year by disclosing to BVB the "Comply or Explain" Statement. The findings of our research show that the concept of 'corporate governance' has lately been a matter for intense debate due to the famous financial failures in recent years. In 2009, Transelectrica was the only company in tier I of the BVB which filled in and submitted the "Comply or Explain" Statement. Therefore, we believe that Transelectrica should serve as a fine example for the entities listed with the BVB as regards the filling in and submitting of the said Statement.

Suggested Citation

  • Fulop Melinda Timea, 2011. "Corporate Governance-The Role And Application Of The Principle Of Transparency," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 616-621, July.
    • Handle: RePEc:ora:journl:v:1:y:2011:i:1:p:616-621
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2011/n1/058.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brenda A. Porter, 2009. "The audit trinity: the key to securing corporate accountability," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(2), pages 156-182, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Melinda Timea FÜLÖP & Mirela-Oana PINTEA, 2014. "Effects Of The New Regulation And Corporate Governance Of The Audit Profession," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 545-554, July.
    2. George Silviu CORDOȘ & Melinda Times FÜLÖP, 2014. "Audit Reporting And Corporate Governance: Links And Implications," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 3, pages 146-154, April.
    3. Nobert Osemeke & Louis Osemeke, 2017. "The role of auditors in the context of Nigerian environment," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(4), pages 299-317, November.
    4. Cristina Bota-Avram, 2011. "Some Arguments That Justify The Audit Trinity’S Approach In The Context Of Corporate Governance," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 6(1), pages 5-18, April.
    5. Monica Violeta Achim & Nicolae Sorin Borlea & Ludovica Breban, 2010. "Financial Crisis and Accounting Information: The Need for Corporate Social Responsibility in Accounting Profession," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 39-62.
    6. Cristina Boţa-Avram, 2012. "Investigation of External Audit’s Good Practices in the Context of Corporate Governance - Evidence from Romania," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 1-7, February.
    7. Taslima Akther & Fengju Xu, 2020. "Existence of the Audit Expectation Gap and Its Impact on Stakeholders’ Confidence: The Moderating Role of the Financial Reporting Council," IJFS, MDPI, vol. 8(1), pages 1-25, January.
    8. Cristina Boţa-Avram, 2012. "Perceptions Over the Audit Committee Practices in the Context of Corporate Governance: Evidence From Romania," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(5), pages 1-11, October.
    9. Cristina Boţa-Avram & Paula Ramona Răchişan, 2013. "Analysing The Similarities Between Oecd Principles Versus European Corporate Governance Codes - An Internal Audit Perspective," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-15.
    10. Maria Krambia-Kapardis & Chris Christodoulou & Michalis Agathocleous, 2010. "Neural networks: the panacea in fraud detection?," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(7), pages 659-678, July.
    11. repec:mth:ijafr8:v:8:y:2018:i:4:p:100-114 is not listed on IDEAS
    12. Fengju Xu & Taslima Akther, 2019. "A Partial Least-Squares Structural Equation Modeling Approach to Investigate the Audit Expectation Gap and Its Impact on Investor Confidence: Perspectives from a Developing Country," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    13. Melinda Timea Fulop, 2014. "The Role of the Audit Committee in Corporate Governance and the Influence of the Exchange Rates," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 279-286, January.
    14. Ezaaz Hasan & Anjani Mala & Glen Finau, 2015. "The Nature And Concept Of Accountability: A Case Study Of Three Entities In Fiji," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 9(2), pages 65-74.

    More about this item

    Keywords

    corporate governance; transparency; efficiency; recommendations; regulations;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2011:i:1:p:616-621. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catalin ZMOLE (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.