CORPORATE GOVERANCE IN LOCAL PUBLIC SECTOR

Usually, the corporate governance was used in private sector for a long time. The paper transposes it to the local public sector. The paper wants to answer to the following question: what are the local public corporate governance elements that add value to institutional performance? Therefore, the focus of the paper is on the relationship between corporate governance practices in local public administration and institution financial performance. The main results of the paper points out the corporate governance indicators fitted to the Romanian local public administration and their influence of the financial performance of the tested entities. The final result points out that the size of local council board, clarity in roles, responsibility and activities and audit report have a significant influence on the net result (surplus/deficit) on total equity of the public local administration entities tested.