Financial crisis and corporate governance in the financial sector: Regulatory changes and financial assistance in Germany and Europe

Stiglbauer, Markus; Fischer, Thomas M.; Velte, Patrick

doi:10.1057/jdg.2012.8

Cited by 6 publications

(5 citation statements)

References 27 publications

(19 reference statements)

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“…Moreover, § 289a HGB now forces corporations to a broaden reporting on corporate governance-specific issues (corporate governance statement), e.g. companies have to describe real action within management and supervisory boards in the two-tier system, the constitutions and self-reflection of those boards and the kind of election within them (Stiglbauer et al, 2012). Nevertheless, in contrast to the USA, there is still only minor possibility and pressure to proof whether companies' reporting on compliance with the GCGC is correct and there is also little danger in the German legal system for managers of being personally punished for incorrect compliance statements or consequences for companies concerning listing at the Frankfurt Stock Exchange.…”

Section: Discussionmentioning

confidence: 99%

Impact of soft law regulation by corporate governance codes on firm valuation: the case of Germany

Stiglbauer

Velte

2014

Corporate Governance

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Purpose – This paper aims to provide insight whether disclosed compliance with the German Corporate Governance Code (GCGC) leads to higher valuation on the German stock market. Design/methodology/approach – Based on agency theory, stakeholder theory and institutional theory, the authors conduct a meta-analysis and evaluate the value relevance of the compliance with the GCGC. Findings – The research finds that compliance with the GCGC is mainly not a value-relevant factor for German companies listed at the Frankfurt Stock Exchange. Research limitations/implications – The research considered is not fully comparable with regard to observation date, full integration of the GCGC rules and company selection/sample size. Future research is encouraged to research the valuation effects of compliance with the GCGC for a longer time horizon, the use of uniform performance measures and the integration of all GCGC rules. Practical implications – Compliance with the GCGC has not proven to be a value-driver for German listed companies. The authors recommend companies to search for opportunities to make their corporate governance more comprehensive by expanding their corporate governance reporting and thus providing deeper insights on how their processes of management and control work. Originality/value – The paper is the first investigation integrating the results of ten years of “code compliance – market valuation” research in Germany. We detect reasons why soft law regulation by corporate governance codes did not function on the German stock market. We additionally address behavioral aspects why investors do not give enough relevance to companies’ corporate governance statements so far.

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Section: Discussionmentioning

confidence: 99%

Impact of soft law regulation by corporate governance codes on firm valuation: the case of Germany

Stiglbauer

Velte

2014

Corporate Governance

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“…It became obvious that these perceptions are the result of a complex interplay between international pressure for the introduction of certain concepts, on the one hand, and the national translation and adaptation of these ideas on the other (Buck and Shahrim, 2005;Stiglbauer et al, 2012). The influence of political and institutional changes was found to have a greater impact on GCG perceptions than market forces do (Filatotchev et al, 2003;Le et al, 2010), or, in other words, institutional pressures had a greater influence than economic efficiency pressures.…”

Section: Discussionmentioning

confidence: 99%

“Good” Corporate Governance in Transformation Countries — A Comparison of Experts' Perceptions in East Germany, Estonia and Hungary

Steger¹,

Alas²,

Tafel-Viia³

2014

Corporate Governance and Corporate Social Responsibility

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This chapter explores the perceptions held about "good" corporate governance (GCG) in three different transforming economies of Central and Eastern Europe [CEE] (East Germany, Estonia, and Hungary). Forty-nine interviews were conducted with corporate governance experts from various institutions in the three countries between 2003 and 2004. They were analyzed with the help of several qualitative techniques, resulting in a typology of GCG perceptions. Our findings show that these perceptions are strongly influenced by the institutional and historical background of the countries. However, they are far from being uniform or shaped along the lines of well-known Western models but take, rather, some hybrid forms. This chapter also highlights the crucial role (native) professionals and experts play in the development process of GCG.

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“…Alguns trabalhos se dedicaram a pesquisar a relação entre IGOV e desempenho, utilizando diferentes metodologias, e também encontraram um resultado negativo (Demsetz;Villalonga, 2001;Silveira, 2004;Firth;Fung;Rui, 2006;Bhagat;Bolton, 2008). Outros trabalhos mais recentes buscaram analisar a relação entre a GC e a crise econômica de 2008 (Hausmann;Bechtold-Orth, 2010;Ringe, 2013;Stiglbauer;Fisher;Velte, 2012;VÄHÄMAA, 2012;ROSS;CROSSAN, 2012;MÜLBERT, 2009) e verificaram em seus achados que a qualidade da GC agravou os efeitos da crise econômica, nem sempre especificamente sobre o desempenho das empresas. Esses trabalhos apontam para falhas no atual sistema de GC, principalmente no contexto anglo-saxão.…”

Section: Roe Variáveisunclassified

“…No entanto, os primeiros efeitos da crise sobre a economia brasileira passaram a ser efetivamente percebidos a partir de setembro de 2008, com o anúncio da falência do banco de investimento norte-americano Lehman Brothers, que provocou pânico no mercado financeiro internacional e valorização da moeda norte-americana. A literatura recente sobre governança corporativa (GC) sugere, contudo, que, além das causas micro e macroeconômicas para a crise, falhas graves nas estruturas de GC públicas e privadas contribuíram para o agravamento da recessão (KIRKPATRICK, 2009;YEOH, 2010;ROSS;CROSSAN, 2012;Stiglbauer;Fisher;Velte, 2012;RINGE, 2013).…”

Section: Considerações Finaisunclassified

Governança corporativa e desempenho das empresas diante da crise econômica global de 2008: uma análise de dados em painel

2016

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The recent literature on corporate governance (CG) suggests that in addition to the micro and macroeconomic causes for the crisis, serious flaws in the structures of public and private governance contributed to the worsening of the global economic crisis of 2008. Given this scenario, the present research sought to advance in the understanding of the relationship between CG, performance and recessions. The objective was to verify the influence of the quality of the CG in the performance of Brazilian companies listed on Bovespa BMF in the context of the global economic crisis of 2008. The indicators of performance and corporate governance defined by the theoretical basis were calculated, the behavior of the variables suffered an exploratory analysis from descriptive statistics and an econometric data panel model was used to test the hypothesis. As a main result, this research found that the performance measured by return on assets (ROA) is explained by the quality of corporate governance. The relationship proved to be statistically significant and negative. Was registered a gradual growth of the quality of corporate governance. The behavior of the performance variable, between January 2004 and December 2012, demonstrates clearly the collapse caused in the results of companies with the outbreak of the global economic crisis in 2008. There is evidence that the results at the end of the period of the survey remained distant from the levels observed prior to the crisis. The relationship between the quality of corporate governance in the pre-crisis period and performance proved to be statistically significant and positive.

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Financial crisis and corporate governance in the financial sector: Regulatory changes and financial assistance in Germany and Europe

Cited by 6 publications

References 27 publications

Impact of soft law regulation by corporate governance codes on firm valuation: the case of Germany

Impact of soft law regulation by corporate governance codes on firm valuation: the case of Germany

“Good” Corporate Governance in Transformation Countries — A Comparison of Experts' Perceptions in East Germany, Estonia and Hungary

Governança corporativa e desempenho das empresas diante da crise econômica global de 2008: uma análise de dados em painel

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