Independence in Corporate Governance – Empirical Study Upon its Impact towards European Banking System Transparency
Author:
Univ. Lecturer Cristina Alexandrina ŞTEFĂNESCU, Ph. D.
JEL:
M10, G30
DOI:
Keywords:
corporate governance, banking system, independence, transparency
Abstract:
Transparency is „a mirror” of good corporate governance practices, while independence is a principle that ensures „new windows to the world” (Tricker, 1984), thus being a key characteristic of a good corporate governance system able to reduce conflicts of interest within an organization. Basing on this premises, the present study was aimed to provide an answer to following research question: ”How does independence in corporate governance system of banking sector influence transparency of risks’ information?” \r\nThe results of empirical analysis performed for testing the hypotheses derived from the research question confirms the importance of the independence of the main actors involved in corporate governance process in increasing the level of information disclosed, and thereby its major role in reducing asymmetric information.\r\n\r\n