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Corporate governance and financial performance: evidence from Romania

Mirela Oana Pintea (Finance Department, Faculty of Economics and Business Administration, Babeş-Bolyai University, Cluj-Napoca, Romania)
Andreea Mădălina Pop (Banca Transilvania SA, Cluj-Napoca, Romania)
Marius Dan Gavriletea (Business Department, Faculty of Business, Babeş-Bolyai University, Cluj-Napoca, Romania)
Ioana Cristina Sechel (BRK Financial Group, Cluj-Napoca, Romania)

Journal of Economic Studies

ISSN: 0144-3585

Article publication date: 16 December 2020

Issue publication date: 29 October 2021




The purpose of this research is to evaluate the impact of adopting the principles of corporate governance on the financial performance of companies listed on the Bucharest Stock Exchange (BSE). To assess the implementation of corporate governance principles, the authors built an index based on the principles specified in the BSE Corporate Governance Code (CGC).


An econometric analysis was conducted to estimate the impact that the authors’ corporate governance indicator had on financial performance, measured successively through Tobin's Q, return on equity (ROE), economic value added (EVA) and total shareholder return (TSR).


Following the regression model, the authors noticed the absence of a significant impact of corporate governance practices on performance measured by ROE, EVA and TSR but instead, a significant and positive relationship for Tobin's Q rate was found.

Research limitations/implications

Due to the lack of data before the implementation of the BSE Code of Corporate Governance, the research period is limited to 2010–2015, but the authors’ future studies will try to extend the research period.


Although numerous studies have been conducted to analyze the empirical relationship between corporate governance and financial performance, no conclusive results have been obtained. The diversity of these findings can refer to methods used in the construction of a corporate governance measure as well as to the accuracy of financial reporting.



Author contributions: All authors have contributed significantly to this research in all phases and sections.Funding: This research received no external funding.


Oana Pintea, M., Pop, A.M., Dan Gavriletea, M. and Sechel, I.C. (2021), "Corporate governance and financial performance: evidence from Romania", Journal of Economic Studies, Vol. 48 No. 8, pp. 1573-1590.



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