Title: The German Corporate Governance Code: general acceptance and neuralgic norms – a second look

Authors: Axel v. Werder, Till Talaulicar, Georg L. Kolat

Addresses: Department of Organization and General Management, Technical University of Berlin, WIL-B/2-2, Wilmersdorfer Str. 148, D-10585 Berlin, Germany. ' Department of Organization and General Management, Technical University of Berlin, WIL-B/2-2, Wilmersdorfer Str. 148, D-10585 Berlin, Germany. ' Department of Organization and General Management, Technical University of Berlin, WIL-B/2-2, Wilmersdorfer Str. 148, D-10585 Berlin, Germany

Abstract: Based on a survey of all the companies listed at the Frankfurt Stock Exchange, this paper analyses the extent of compliance with the German Corporate Governance Code. The investigation includes the recommendations as well as the suggestions of the Code. Overall, findings indicate a high level of Code conformity. Furthermore, the Code continues to contribute to the changes of the governance modalities of German firms. Nonetheless, Code standards remain which gain comparably less acceptance. We identify those norms, which are still rejected by the majority of the surveyed corporations and discuss why these compliance rates are currently low and whether they can be expected to increase in the future.

Keywords: compliance; corporate governance; German Corporate Governance Code; statement of conformity; public policy; Germany.

DOI: 10.1504/IJPP.2006.010848

International Journal of Public Policy, 2006 Vol.1 No.4, pp.435 - 450

Published online: 06 Sep 2006 *

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