Abstract: 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.
Abstract: This paper investigates several factors affecting the
cost of capital for listed Romanian companies. Although there is a
large amount of literature investigating the drivers of the cost of
capital internationally, there is currently little evidence from
emergent markets. Based on a sample of 19 Romanian listed
companies followed by financial analysts for the years 2008-2010,
according to Thomson Reuters- I/B/E/S data base, the paper confirms
the international trends, showing that size, corporate governance
policies, and growth are negatively correlated with the cost of capital.