Corporate Governance, Internal Audit and Environmental Audit - The Performance Tools in Romanian Companies

Previous studies on companies listed on the Bucharest Stock Exchange (BSE) revealed that most of these entities do not meet the new corporate governance requirements about independent directors, Audit Committee members and the general recommendations of transparency. Companies that apply a lower level of corporate governance recommendations tend to have poorer performance, being less profitable and having a higher volatility. Correlation between corporate governance and internal audit is approached through the determinism relationship between turnover, assets investments and employees attraction, and positivity of this relation shows that it is beneficial of the performance of these companies. An effective internal audit function is supposed to assist management to fulfill its governance responsibilities. The environmental aspects incorporated in internal audit area will reduce the pressure from stakeholders on the environmental actions and impact of the company and their trust of the information disclosed on the overall performance will increase. The study is based on quantitative analysis using a multiple linear regression model to explain economic phenomena. The variables used are: turnover (CA), fixed assets (AI) and number of employees (SAL) reported for 2010 by the companies listed on BSE, BVB and RASDAQ sections. This paper evaluates the financial performance, measured by turnover, dependent variable relative to changes in factors that influence performance, expressed by the independent variables, fixed assets and number of employees and present behaviour of companies under financial and economic crisis, inviting them to know the causes that affect reaching the performance, to change their actions and set priorities.