Corporate Governance Practices and Analysts Forecast Accuracy Evidence for Romania
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 32794
Corporate Governance Practices and Analysts Forecast Accuracy Evidence for Romania

Authors: M. Ionascu, L. Olimid


In the last few years, several steps were taken in order to improve the quality of corporate governance for Romanian listed companies. Higher standards of corporate governance is documented in the literature to lead to a better information environment, and, consequently, to increase analysts forecast accuracy. Accordingly, the purpose of this paper is to investigate the extent to which corporate governance policies affect analysts forecasts for companies listed on Bucharest Stock Exchange. The results showed that there is indeed a negative correlation between a corporate governance index – used as a proxy for the quality of corporate governance practices - and analysts forecast errors.

Keywords: corporate governance, aanalysts' forecasts, information environment

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1412


[1] G. Bhat, O.-K. Hope, and T. Kang, "Does corporate governance transparency affect the accuracy of analyst forecasts?", Accounting & Finance, 46, pp. 715-732, 2006.
[2] D. Byard, Y. Li, and J. Weintrop, "Corporate Governance and the Quality of Financial Analyst-s Information", Journal of Accounting and Public Policy, 25, pp. 609-625, 2006.
[3] F. Cerbioni, and A. Parbonetti, "Exploring the Effects of Corporate Governance on Intellectual Capital Disclosure: An Analysis of European Biotechnology Companies" European Accounting Review, Volume 16, Number 4, 2007.
[4] I. Duca et al., "Corporate Governance Practices' Implementation in Romania - Achievements, Deficiencies, Action Items". The 47th Congress of the European Regional Science Association, ERSA, Paris August 29th - September 2nd, 2007. Available at SSRN:
[5] Garcia Lara et al., "Board of Directors- Characteristics and Conditional Conservatism: Spanish Evidence, European Accounting Review, Volume 16, Number 4, 2007.
[6] I. Ionaşcu, M. Ionaşcu, L. Olimid, and D. Calu, "An empirical evaluation of the costs of harmonising Romanian accounting with international regulations (EU Directives and IAS/IFRS)", Accounting in Europe, Volume 4, Issue 2, pp. 169-206, 2007.
[7] I. Karamanou, N. Vafeas, "The Association between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical Analysis", Journal of Accounting Research, 43(3), pp. 453-486, 2005.
[8] L. Olimid, M. Ionaşcu, L. Popescu, V. D. Popescu, "Corporate Governance in Romania. A Fragile Start", Proceedings of ECMLG 2009, the 5th European Conference on Management, Leadership and Governance, held at the ATExcelixi Training and Conference Centre, Athens, Greece, 5-6 November 2009, pp. 151-156.
[9] The Foreign Investors Council, White Book: Maintaining Growth, February 2009, Bucharest, Romania
[10] A. Rusu, Sistemul dualist de conducere a societatilor comerciale, Magazinul Progresiv, 2006,
[11] Private Entrepreneurs Confederation from Timis County-PECT, Corporate Governance in Romania: Project abstract and major findings of debates during the Corporate Governance Project, presented by Despina Pascal, The Center for International Private Enterprise, Conference on Increasing Transparency, Combating Corruption and Improving Corporate Governance, Budapest, March 26-28, 2002
[12] Kim, J., "Recent Amendments to the Korean Commercial Code and Their Effects on International Competition", Available at SSRN: or DOI: 10.2139/ssrn.248818 Date posted: December 08, 2000; Last revised: April 21, 2003
[13] OECD, Corporate Governance in Romania, 2001,
[14] OECD, White Paper on Corporate Governance in South Eastern Europe, 2003,