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Governance and Performance in Romanian Energy Companies

Author

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  • Adrian Doru Bigioi

    (Department of Accounting and Audit, The Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Cristina Elena Bigioi

    (Department of Economics, Faculty of Entrepreneurship, Business Engineering and Management, University Politehnica of Bucharest, 060042 Bucharest, Romania)

Abstract

The energy sector is essential to a country’s economy and social life. In recent years, the energy market in Romania has experienced a certain dynamism, influenced by multiple factors such as regional conflicts, national and EU energy legislation, liberalization of the energy market, and increasing demand for energy products. These factors determined a sharp increase in electricity, gas, and oil prices in Romania in recent years. Based on the above, the present study aims to analyze Romanian energy companies’ financial performances and determine whether there is any correlation between their governance and their performance. In order to fulfill the research objectives, financial performance data were extracted and analyzed for a number of 43 energy companies in Romania, considering the financial statements prepared up to 31 December 2021. Using the scoring method, governance indices were determined for each company. Finally, using a linear regression model, we analyzed the correlation between governance and performance of the 43 companies. The results of the study indicate that there is a direct correlation of moderate intensity between the two variables, with the performance of energy companies being higher if they have implemented a governance system.

Suggested Citation

  • Adrian Doru Bigioi & Cristina Elena Bigioi, 2023. "Governance and Performance in Romanian Energy Companies," Energies, MDPI, vol. 16(13), pages 1-22, June.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:13:p:5041-:d:1182555
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    References listed on IDEAS

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    1. Izabela Jonek-Kowalska & Sara Rupacz, 2023. "The Innovative Nature of Selected Polish Companies in the Energy Sector Compared to the Use of Renewable Energy Sources from a Financial and an Investor’s Perspective," Resources, MDPI, vol. 12(12), pages 1-19, December.

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