Compliance with the German Corporate Governance Code and firm performance: a ten-year experience
by Markus Stiglbauer; Patrick Velte
International Journal of Behavioural Accounting and Finance (IJBAF), Vol. 3, No. 1/2, 2012

Abstract: In 2002, the German Corporate Governance Code (GCGC) was established to improve corporate governance of German listed firms and to make the German corporate governance system and firm-specific corporate governance more transparent for (international) investors. With regard to the empirical corporate governance research it is not sure, whether these non-enforced soft law standards might contribute to a management-based influence of the behaviour of the investors. This paper explores how far companies are in line with the GCGC and if investors reward companies which comply with the GCGC. Against theoretical assumptions, reviewing the empirical studies on this topic we find compliance with the GCGC not to affect German listed firms' capital market performance significantly positive. The findings give good reason to discuss whether in view of the behavioural financial accounting enforcement of good corporate governance via soft law or rules is convenient for a still developing German capital market and the German bank-based corporate governance system with traditionally low investor protection (insider system).

Online publication date: Fri, 10-Apr-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Behavioural Accounting and Finance (IJBAF):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com