Corporate governance – principles applied to securities issuers listed on a regulated capital market

Author:Univ. Prof. PhD. Tatiana DĂNESCU, Lecturer, PhD Student Ioan Ovidiu SPĂTĂCEAN

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Keywords:corporate governance, administration council, equity owners, supervising, reports

Abstract:
Regarded as a significant coordinate of the consolidation and compatibility providing process for the Romanian capital market’s integration in the global financial markets, implementing adequate corporate governance principles is designed to promote efforts needed to ensure credibility of financial reporting process through generating information capable of satisfying investors’ needs, especially for sophisticated ones( Defined in accordance to article no. 2 in Law no. 297/2004 regarding capital market, with subsequent changes and supplements).\r\nCorporate governance is possessing more and more intensively interests towards which modern business world gravitates, at least from the perspective of globalization process provided that capital providers are clearly keeping more distance from an entity’s management board ( According to agent theory that justifies the necesity of financial audit, as well as implementing efforts for an adequate corporate government process).\r\nCorporate governance actions may be regarded as one of the fundamental elements in improving the level of efficiency in business administration and of investors’ confidence, in consequence. Corporate governance implies on one hand, precise rules as well as organizing and corporate acting standards (applied to administration/supervising council non-executive members, board of directors executive members, auditors and shareholders), and on the other hand, strong relations between administration/supervising council, entity’s management, auditors and shareholders, providing a favorable climate for setting entity’s objectives, for assessing the achieving means and for performance surveillance.\r\n\r\n

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