Advanced Search
MyIDEAS: Login

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

Contents:

Author Info

  • Fulop Melinda Timea

    ()
    (Babes Bolyai, ªtiinþe Economice ºi Gestiunea Afacerilor)

Registered author(s):

    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.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://anale.steconomiceuoradea.ro/volume/2011/n1/058.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by University of Oradea, Faculty of Economics in its journal The Journal of the Faculty of Economics - Economic.

    Volume (Year): 1 (2011)
    Issue (Month): 1 (July)
    Pages: 616-621

    as in new window
    Handle: RePEc:ora:journl:v:1:y:2011:i:1:p:616-621

    Contact details of provider:
    Postal: Universitatii str. 1, Office F209, 410087 Oradea, Bihor
    Phone: +40259408799
    Fax: 004 0259 408409
    Email:
    Web page: http://anale.steconomiceuoradea.ro/
    More information through EDIRC

    Related research

    Keywords: corporate governance; transparency; efficiency; recommendations; regulations;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    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, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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