Exploring the Influence of Corporate Governance on the Financial Performance. Case Study of the Energy Sector

Abstract: Given the region’s commitment to sustainable and renewable energy sources as well as its reliance on conventional fossil fuels, the energy industry in Europe shines in the light of contemporary economies. The Euro­pean energy industry is at a turning point and is prepared to change in re­sponse to new environmental concerns and shifting market dynamics. This paper aims to investigate whether the corporate governance score (GOV) of companies operating in the energy sector is associated with their corpo­rate financial performance (CFP). The research covered data from 103 com­panies in the energy sector collected from Thomson Reuters Eikon for the period 2017-2021. The research used the regression and correlation analysis between GOV performance and its components and an accounting-based measure of profitability: total revenue. The data used in this study were an­alyzed using SPSS Software. The results show a partial but positive correla­tion between the management mechanisms on financial performance and a full positive influence of CSR strategy on financial performance; the share­holder score shows no impact. The energy sector is an environmentally sen­sitive yet understudied industry, and the present research helps to determine what has to be improved from a sustainability point of view

7th International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2023 – Selected Papers, Hybrid (Faculty of Organization and Informatics Varaždin, University of Zagreb, Croatia), October 26, 2023

ITEMA Selected Papers published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ITEMA conference partners: Faculty of Economics and Business, University of Maribor, Slovenia; Faculty of Organization and Informatics, University of Zagreb, Varaždin; Faculty of Geography, University of Belgrade, Serbia; Institute of Marketing, Poznan University of Economics and Business, Poland; Faculty of Agriculture, Banat’s University of Agricultural Sciences and Veterinary Medicine ”King Michael I of Romania”, Romania

ITEMA Conference 2023 Selected Papers: ISBN 978-86-80194-76-9, ISSN 2683-5991, DOI: https://doi.org/10.31410/ITEMA.S.P.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.

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