The impact of corporate governance characteristics on companies’ financial performance: Evidence from Romania
This paper assesses the possibility of a relationship between corporate governance mechanisms, as independent variables, and firm performance measures, as dependent variables. The data was taken from the annual reports of a sample of 66 companies listed on Bucharest Stock Exchange in Premiu...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, Belgrade
2022-01-01
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| Series: | Ekonomski Anali |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642233113M.pdf |
| Summary: | This paper assesses the possibility of a relationship between corporate
governance mechanisms, as independent variables, and firm performance
measures, as dependent variables. The data was taken from the annual reports
of a sample of 66 companies listed on Bucharest Stock Exchange in Premium
and Standard categories during the period 2016-2020. The SPSS statistical
program was used to run the multivariate linear regression model on the
selected sample. Additional variables were used to control for leverage and
size. The results of the study are mixed. Board size, board gender, and
board meetings have a positive impact on a firm’s performance, measured by
both return on assets (ROA) and return on equity (ROE). CEO duality has a
positive and significant impact on a firm’s performance measured by ROA,
while a negative and insignificant correlation was founded for ROE. Board
independence has a negative and insignificant association with both firm
performance measures. The results obtained can help companies to manage
their corporate governance. |
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| ISSN: | 0013-3264 1820-7375 |