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
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: Suggested Citation