Advanced Search
MyIDEAS: Login to save this paper or follow this series

Behind Broad Corporate Governance Aggregates: A First Look at Single Provisions of the German Corporate Governance Code

Contents:

Author Info

Registered author(s):

    Abstract

    This study contributes to the emerging research that analyzes the relation between performance and single components of broad corporate governance aggregates, such as governance codes and ratings. Available research so far is confined to the U.S., Japan, and emerging markets. We enlarge the geographical scope to the German Corporate Governance Code (GCGC). For a sample of 100 large listed German stock corporations, we find for the GCGC at large that of our performance measures only Tobin’s q is significantly associated with compliance; this connection is negative. Individual analysis of eleven GCGC recommendations reveals that for three of them, association with all performance measures is insignificant. Four (four) components are significantly positively negatively) connected with at least one performance measure. Most remarkably are some significantly negative associations between components and performance. Their existence might explain why the majority of empirical studies fail to find a significant connection between the GCGC at large and performance. As the group of single components found to be significant in the literature so far is quite inconsistent, further research questions emerge, such as whether there is some stability in the set of significant single components across performance measures, across countries, and through time. This study provides new impulse to both commissions setting up governance codes and to commercial providers of governance scores. In view of the significantly negative associations we found, an empirical quality inspection of the GCGC at large and of its components is recommended.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: ftp://212.204.40.50/econ/RePEc/pdf/phu_dp_010.pdf
    Our checks indicate that this address may not be valid because: 500 Failed to connect to FTP server 212.204.40.50: Net::FTP: connect: 10061. If this is indeed the case, please notify (Frank Waldau)
    Download Restriction: no

    Bibliographic Info

    Paper provided by Hanseatic University, Germany, Department of Economics in its series Working Papers with number 010.

    as in new window
    Length: 49 pages
    Date of creation: Apr 2008
    Date of revision:
    Handle: RePEc:phu:wpaper:010

    Contact details of provider:
    Web page: http://www.hanseuni.com

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:phu:wpaper:010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Waldau) The email address of this maintainer does not seem to be valid anymore. Please ask Frank Waldau to update the entry or send us the correct address.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.