The German Corporate Governance Code: Conception and Consequences

Schmalenbachs Zeitschrift fuer betriebswirtschaftliche Forschung, Special Issue, Vol. 50, pp. 15-36, 2003

Posted: 25 Apr 2007

See all articles by Axel V. Werder

Axel V. Werder

Technical University of Berlin, Department of Organization and General Management

Till Talaulicar

University of Erfurt

Abstract

The German Corporate Governance Code aims to enhance the transparency and the quality of corporate management in Germany. Strengthening the governance modalities depends on how the German companies comply with the provisions put forward in the code. In order to thoroughly assess the code's impact, the statement of code compliance, the compliance practice and its performance effects have to be distinguished. This arti-cle focuses on the statement of code compliance. Based on our analysis of disclosure consequences it seems reasonable to propose a tendency towards statements of full compliance in practice. Lower levels of compliance are only to be expected with respect to critical recommendations which demand quite specific governance arrangements that can be observed by outsiders and are contrary to the interests of the board members.

Keywords: Compliance, Corporate governance, German Corporate Governance Code, Management board, Statement of conformity, Supervisory board, Transparency

JEL Classification: G30, G34

Suggested Citation

Werder, Axel v. and Talaulicar, Till, The German Corporate Governance Code: Conception and Consequences. Schmalenbachs Zeitschrift fuer betriebswirtschaftliche Forschung, Special Issue, Vol. 50, pp. 15-36, 2003, Available at SSRN: https://ssrn.com/abstract=981875

Axel v. Werder

Technical University of Berlin, Department of Organization and General Management ( email )

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Till Talaulicar (Contact Author)

University of Erfurt ( email )

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