Corporate Governance Practices and Analysts Forecast Accuracy Evidence for Romania
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.
[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:
http://ssrn.com/abstract=1348194
[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
http://www.fic.ro/whitebook/whitebook.html.
[10] A. Rusu, Sistemul dualist de conducere a societatilor comerciale,
Magazinul Progresiv, 2006,
http://old.magazinulprogresiv.ro/legislatie.php?id=18.
[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
http://www.cipe.org/programs/roundtables/budaconf/papers.php
[12] Kim, J., "Recent Amendments to the Korean Commercial Code and
Their Effects on International Competition", Available at SSRN:
http://ssrn.com/abstract=248818 or DOI: 10.2139/ssrn.248818 Date
posted: December 08, 2000; Last revised: April 21, 2003
http://www.lawnet.lk/docs/articles/international/HTML/A5.html
[13] OECD, Corporate Governance in Romania, 2001,
http://www.oecd.org/dataoecd/16/35/2390703.pdf
[14] OECD, White Paper on Corporate Governance in South Eastern Europe,
2003, http://www.oecd.org/dataoecd/12/59/2789065.pdf.
[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:
http://ssrn.com/abstract=1348194
[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
http://www.fic.ro/whitebook/whitebook.html.
[10] A. Rusu, Sistemul dualist de conducere a societatilor comerciale,
Magazinul Progresiv, 2006,
http://old.magazinulprogresiv.ro/legislatie.php?id=18.
[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
http://www.cipe.org/programs/roundtables/budaconf/papers.php
[12] Kim, J., "Recent Amendments to the Korean Commercial Code and
Their Effects on International Competition", Available at SSRN:
http://ssrn.com/abstract=248818 or DOI: 10.2139/ssrn.248818 Date
posted: December 08, 2000; Last revised: April 21, 2003
http://www.lawnet.lk/docs/articles/international/HTML/A5.html
[13] OECD, Corporate Governance in Romania, 2001,
http://www.oecd.org/dataoecd/16/35/2390703.pdf
[14] OECD, White Paper on Corporate Governance in South Eastern Europe,
2003, http://www.oecd.org/dataoecd/12/59/2789065.pdf.
@article{"International Journal of Business, Human and Social Sciences:61117", author = "M. Ionascu and L. Olimid", title = "Corporate Governance Practices and Analysts Forecast Accuracy Evidence for Romania", 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.", keywords = "corporate governance, aanalysts' forecasts,
information environment", volume = "5", number = "5", pages = "711-5", }
