Analysis of the Correlation between Corporate Governance and the Economic-Financial Performance of the Economic Entities
| Autor: | Raluca Florentina Cretu |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
040101 forestry
Value (ethics) 050208 finance Corporate governance media_common.quotation_subject 05 social sciences Control (management) Equity (finance) 04 agricultural and veterinary sciences Global governance Interest rate Quality management system Shareholder 0502 economics and business 0401 agriculture forestry and fisheries Business Industrial organization media_common |
| Zdroj: | Journal of International Business Research and Marketing. 6:17-23 |
| ISSN: | 2584-3222 1849-8558 |
| Popis: | Performance is a combination of efficiency and effectiveness. If efficiency is to achieve maximum effects with minimal effort, effectiveness is the quantification of the extent to which the objectives are met. The new economic configuration of commercial transactions, characterized by change and unpredictability, leads to a shift from a reactive approach, based on previous planning and subsequent control, to a dynamic, proactive, characterized by the quantification-action-reaction. The quantification of the performance of the economic entity is carried out with the help of the indicators. The indicator thus becoming a decision support tool that verifies whether the actions taken are registered in the direction approved by the General Meeting of Shareholders and the Board of Directors. Therefore, quantification of performance involves identifying a methodology in which the following components appear as the main directions of action: customers, shareholders, business partners, own staff, various interested audiences, widening the company’s responsibility to groups other than shareholders, managers, employees and trade unions, internal processes, quality system, information system. In this paper I propose to analyze the correlation between corporate governance and the performance of economic entities, known to be the fact that economic agents with poor corporate governance have low economic performance (low yield of assets, equity and investments, etc), expose themselves more often the risks (eg stock price volatility of BSE listed companies, low interest rate, etc.). I believe that it is necessary to create a new global governance model that takes into account the organizational and evolving dimension of the entity, but also other partners whose actions can maximize the efficiency, performance or value of the brand, and which puts particular emphasis on creating value or wealth for stakeholders. We need a new policy to maximize shareholders’ wealth. |
| Databáze: | OpenAIRE |
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