Corporate Governance Practices' Implementation in Romania - Achievements, Deficiencies, Action Items

This paper aims at highlighting the institutional and legislative progress made in Romania during the last years concerning corporate governance issues, the deterring factors of this process and at proposing action items for improving the corporations' administration practices. Our paper shows that the improvement of the corporate governance standards in Romania is crucial, considering the integration into the European Union.Our research indicates that most of the companies consider the adoption of corporate governance principles as being complicated, because it implies the change in the company memorandum of association and huge expenses on legal and financial-accounting consultancy. In addition, in the emerging economies, similar to Romania, the corporate governance standard of a company is not so important to the funds suppliers, whether they are banks, investment funds or individual investors and that is why companies do not feel rewarded in any way for making efforts to improve their administration practices. Unfortunately, despite the institutional efforts, inside the business environment and even among companies listed on the capital market, there still is no real concern for these issues