Evolution of German corporate governance (1995-2014): an empirical analysis
ISSN: 1472-0701
Article publication date: 18 July 2019
Issue publication date: 15 October 2019
Abstract
Purpose
This paper aims to address the evolution of corporate governance in Germany with a particular regard to whether there can be observed a gradual convergence to a shareholder primacy corporate governance system.
Design/methodology/approach
To investigate a potential shift of the German corporate governance system to an Anglo-American tiled corporate governance system, the authors have empirically assessed on a polynomial base 52 separate company and corporate governance variables for 20 years (1995-2014).
Findings
This research suggests that a gradual convergence has taken place prior to the global financial crisis. However, the results suggest that the convergence process experienced a slowdown in the aftermath of the global financial crisis, which may be linked to the stability of the German corporate governance system during the global financial crisis and the political environment during this time.
Originality/value
This paper contributes to the research by not only analysing the development of the German corporate governance system but also identifying new reasons for this development and explaining why a new convergence process may be observed in the future again.
Keywords
Citation
Rühmkorf, A., Spindler, F. and Samanta, N. (2020), "Evolution of German corporate governance (1995-2014): an empirical analysis", Corporate Governance, Vol. 19 No. 5, pp. 1042-1062. https://doi.org/10.1108/CG-07-2018-0251
Publisher
:Emerald Publishing Limited
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