Abstract:

The implementation of the corporate governance principles represent a key tool for the institutional development of a competitive and stable commercial and business environment. Moreover, the recent events such as the international financial crisis and the business failures brought the attention on the corporate governance and placed it as a top concern for both the international business community and the international financial institutions. In a globalized economy, companies and countries with weak corporate governance systems are likely to suffer serious consequences above and beyond financial crises. In the case of emerging economies the need for corporate governance extends over resolving problems resulting from the separation of ownership and control and deal with issues such as the lack of property rights, the abuse of minority shareholders or contract violations. In order that corporate governance measures have a strong impact in the economy, a set of democratic, market institutions and legal system should be settled up and a proper framework to apply the principles and codes should be ensured.