Suchergebnisse

Purpose
– This paper aims to provide insight whether disclosed compliance with the German Corporate Governance Code (GCGC) leads to higher valuation on the German stock market.


Design/methodology/approach
– Based on agency theory, stakeholder theory and institutional theory, the authors conduct a meta-analysis and evaluate the value relevance of the compliance with the GCGC.


Findings
– The research finds that compliance with the GCGC is mainly not a value-relevant factor for German companies listed at the Frankfurt Stock Exchange.


Research limitations/implications
– The research considered is not fully comparable with regard to observation date, full integration of the GCGC rules and company selection/sample size. Future research is encouraged to research the valuation effects of compliance with the GCGC for a longer time horizon, the use of uniform performance measures and the integration of all GCGC rules.


Practical implications
– Compliance with the GCGC has not proven to be a value-driver for German listed companies. The authors recommend companies to search for opportunities to make their corporate governance more comprehensive by expanding their corporate governance reporting and thus providing deeper insights on how their processes of management and control work.


Originality/value
– The paper is the first investigation integrating the results of ten years of "code compliance – market valuation" research in Germany. We detect reasons why soft law regulation by corporate governance codes did not function on the German stock market. We additionally address behavioral aspects why investors do not give enough relevance to companies' corporate governance statements so far.

Europeanization addresses the impacts of EU (European Union) membership on national politics and policies. Over time, new policy processes have been developed, such as the use of soft law and the open method of co-ordination. What, though, are the consequences of these new processes for Europeanization? This article contributes to this under-researched area by examining the extent to which EU soft law influences policy adoption at the national level. Our empirical application is corporate governance, an area of growing EU policy interest, with significant soft law elements. We analyse the extent to which the European Commission's 2003 plan to enhance corporate governance achieved its aim of 'co-ordinating corporate governance efforts of Member States'. Our quantitative analysis of 95 national codes issued over 1992–2010 suggests that the Action Plan did influence national policy-making, but that the degree of national policy alignment depends on when the corporate governance code was issued, where, and by whom.

Starting from the research assumption that the Corporate Governance Code issued by Bucharest Stock Exchange (BSE) aims at building an internationally attractive capital market in Romania, based on best practices, transparency and trust that encourages companies to build a strong relationship with their shareholders and other stakeholders, communicate effectively and transparently and show openness towards all potential investors, in this paper we would like to present the degree of compliance of the companies listed on the Bucharest Stock Exchange with the principles and provisions of the Corporate Governance Code. The aim of this paper is achieved by presenting and commenting on the principles issued by the BSE regarding the corporate governance and by analysing the Corporate Governance Reports of the companies, presenting at the same time the compliance of the listed companies with these principles and provisions, by using the data issued in 2018 by the entities included in our study, namely the listed companies on the main market of the Bucharest Stock Exchange. Our analysis reflects that, although the provisions and principles of the Corporate Governance Code are not mandatory for the listed companies, they are largely implemented in the activity of companies because an efficient corporate governance system can represent a competitive advantage for any economic entity in the context of globalisation. ; peer-reviewed

AbstractEuropeanization addresses the impacts of EU (European Union) membership on national politics and policies. Over time, new policy processes have been developed, such as the use of soft law and the open method of co‐ordination. What, though, are the consequences of these new processes for Europeanization? This article contributes to this under‐researched area by examining the extent to which EU soft law influences policy adoption at the national level. Our empirical application is corporate governance, an area of growing EU policy interest, with significant soft law elements. We analyse the extent to which the European Commission's 2003 plan to enhance corporate governance achieved its aim of 'co‐ordinating corporate governance efforts of Member States'. Our quantitative analysis of 95 national codes issued over 1992–2010 suggests that the Action Plan did influence national policy‐making, but that the degree of national policy alignment depends on when the corporate governance code was issued, where, and by whom.

AbstractThe objective of the paper is to examine how firms have dealt with the trade‐off between flexibility and uncertainty that is characteristic for the decision‐making of firms in coping with self‐regulatory initiatives in general and the comply‐or‐explain principle in corporate governance in particular. Using unique data for 126 listed Dutch firms, we find that firms respond to this self‐regulatory initiative by largely complying with the code recommendation, possibly out of fear that the firm's reputation may be damaged. Furthermore, we find evidence suggesting that firms confine themselves to adopting a specific set of code recommendations and use similar arguments to explain non‐compliance. Our findings indicate uniformity in adopting the standard of good governance which is not in line with the logic of corporate governance codes and casts doubt on the effectiveness of this form of soft law. Overall, the paper's findings indicate that more restrictive (regulatory) instruments may be necessary to make firms conform to the spirit of codes.