Abstract
Corporate governance, as an important element from the economic environment is a topic of great interest. During the time, researchers tried to find the most efficient corporate governance characteristics, which have a direct impact over the company’s well-being. Thus, the present study contains a sample of 66 companies, for the period 2016-2021 listed on the BSE (Bucharest Stock Exchange). For the first step, the corporate governance score was computed, by ranking the responses with 1 if they comply or 0 if they do not follow the best practices of corporate governance, so it can be seen the evolution of the quality of reporting. Then, the evolution of the corporate governance score was analyses trough dividing the results into quartiles. Going further, to conduct the research, from the” Comply-Explain” statement five elements which underlines the qualitative reporting were selected: EQUIL (Equilibrium of board members), INDEP (Independence of board members), NOM (Selection of the board members), REM (Remuneration policy) and AUDIT (Audit committee). To consolidate our study, we have also analysed the presence of females in boards and the ownership structure, by sector of activity. In the literature, several elements were the key points, which indicated whether a business adopt the best practices of corporate governance, or not. Considering the literature, the above-mentioned elements were selected and analysed. In the case of Romania, particularly taking the corporate governance score it could be seen that there is a positive evolution for the period 2016-2021. In case of the extracted elements which are part of the corporate governance reporting, it can be seen, that they vary from a year to another, but generally presenting a positive trend. This is an encouraging aspect, meaning that businesses start to acknowledge the fact that applying the corporate governance best practices, will assure the long-term benefits for the companies.
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