An Examination of Corporate Governance in Emerging Economies: A Report

This report analyzes corporate governance in emerging economies, focusing on the case of Romania. It examines the purpose, theory, usefulness, limitations, and critical comments related to corporate governance principles. The study references research on financial crises, executive performance, and the importance of corporate governance for survival. It investigates statistical data on corporate governance in Romania, using data from BSE-listed companies. The report discusses shareholder and stakeholder models, the impact of emerging economies on firm value, and the performance of companies in emerging economies. References include various books and journals on corporate governance and its determinants.

CORPORATE
GOVERNANCE

TABLE OF CONTENTS
ARTICLE:........................................................................................................................................1
Corporate governance in emergent economies...........................................................................1
Purpose of the work....................................................................................................................1
Short summary of the theory.......................................................................................................1
Usefulness and limitation of this research work.........................................................................1
Critical comment.........................................................................................................................2
REFERENCES................................................................................................................................3

ARTICLE:
Corporate governance in emergent economies
Article: Feleagă, N., Feleagă, L., Dragomir, V. D., & Bigioi, A. D. (2011). Corporate
Governance in Emerging Economies: The Case of Romania. Theoretical & Applied
Economics. 18(9).
Purpose of the work
The purpose of this study is to analyse the principles of corporate governance
implemented by entities from emerging countries. It is because competitiveness in this global
economy is more difficult.
Short summary of the theory
In last three decades, it has been evaluated that financial crises and gap between
executive and corporate performances results have demonstrated which means that in order to
survive in today's world corporate governance plays an effective role (Albu and Girbina, 2015).
Thus, the article has been selected by the researcher in order provide the efficient study which
relates to corporate governance. Thus, the aim of present research is to investigate the statistical
data which relates to perceived the importance of principles relates to corporate governance in
Romania. Source of this work is available through listed companies at BSE where at the end of
2010, there were 101 companies which are registered at BSE. For this study only the companies
of first tier has been selected. It because there is possibility that some companies have adopted
the provision of corporate governance of Romanian.
Usefulness and limitation of this research work
In this article, aim of the researcher is to analyse the principles of corporate governance
in emerging market economies and to represent the effectiveness of the study, scholar has
selected listed companies of BSE which shows usefulness of study. In order to provide more
reliability of work, researcher will provide the result with statistical data.
The only limitation of this article is regarding time limit where researcher will able to
develop more information if sufficient time will available.
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Critical comment
According to the views of Borlea, Achim and Mare (2017) emerging market plays an
important role in global economy. Such economy is providing a higher economic growth
prospects and also improving physical and legal infrastructures. There are two models which
followed in developing countries for corporate governance which include the shareholder model
and the stakeholder model where the main motive of firms is to maximise the value of
shareholders.
In the views of Voinea and Fratostiteanu (2018) reported that China and India is a
country of emerging economy which affiliate firms to such economy in order to lead a high
growth where entities will able to achieve huge growth.
On the contrary Achim, Borlea and Mare (2016) argue that affiliation of firms in
emerging economies decreasing the value of firms as well as the effect is partially gets reduced
because of separation of cash flow and control over rights. Author emphasised on the fact that
well governed firms achieve higher profitability more in bad environment of corporate
governance.
However, Mateescu (2015) devise a series of corporate governance ranking of 495
companies where it has been analysed that 25 companies are from emerging economies. Author
also stated that companies which are operating in emerging economies are performing better
corporate governance practises in comparison to countries of developed nation.
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REFERENCES
Books and journals
Achim, M. V., Borlea, S. N., & Mare, C. (2016). Corporate governance and business
performance: Evidence for the Romanian economy. Journal of Business Economics and
Management. 17(3). 458-474.
Albu, C. N., & Girbina, M. M. (2015). Compliance with corporate governance codes in emerging
economies. How do Romanian listed companies “comply-or-explain”?. Corporate
Governance. 15(1). 85-107.
Borlea, S.N., Achim, M.V. & Mare, C., (2017). Board characteristics and firm performances in
emerging economies. Lessons from Romania. Economic research-Ekonomska
istraživanja. 30(1). pp.55-75.
Mateescu, R. A. (2015). Corporate governance disclosure practices and their determinant factors
in European emerging countries. Journal of Accounting and Management Information
Systems. 14(1). 170-192.
Voinea, C. L., & Fratostiteanu, C. (2018). Corporate Social Responsibility in Emerging
Economies. Routledge.
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