Proceedings of the 32nd International Academic Conference, Geneva

THE IMPACT OF CORPORATE GOVERNANCE ON THE COMPANY’S PERFORMANCE

ROXANA LOREDANA AVRAM, ALEXANDRU BUGLEA, ALEXANDRU AVRAM

Abstract:

In our paper we have developed an index for measuring the corporate governance in the Romanian economy based on the corporate governance code of Bucharest Stock Exchange. Corporate governance represents measures and policies through which a company achieves its settled objectives. In the first part of our research we have constructed the index by a questionare that was aplied to major Romanian companies, that were split into four major sectors: banking, oil & gas, automotive and agriculture. In the second part of our research we have measured our index’ impact on performance taking into consideration ROA, size and liquidity, by using a panel VAR for each sector.

Keywords: corporate governance, performance, index of corporate governance

DOI: 10.20472/IAC.2017.032.005

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