The impact of the Combined Code in Greek soft law: Evidence from ‘comply or explain’ disclosures
International Journal of Law and Management
ISSN: 1754-243X
Article publication date: 14 September 2015
Abstract
Purpose
The purpose of this paper is to examine the extent of Combined code (2010) impact in the Greek soft law (SEV code, 2011) and the adoption of an overlapping set (between the two codes) of best practice provisions in Greece.
Design/methodology/approach
Content analysis was conducted to examine the similarities between the UK’s Combined code (2010) and the Greek SEV code (2011). Moreover, a sample of 219 Greek listed companies’ annual reports was analyzed, and their compliance with a specific number of provisions was evaluated.
Findings
Through analyzing the content of both codes, it was found that from the total 64 provisions of the SEV code (2011), 45 were matched to at least one of the Combined codes (2010). From these 45 provisions, 26 were characterized as “in spirit” influence and 19 as “in letter”. Based on this evidence, 22 overlapping practices were selected to investigate the compliance and a quite low rate was revealed, an average percentage of 30.46 per cent. These findings indicate that while exogenous forces trigger the development and adoption of a code in Greece, in line with the UK’s, the endogenous forces tend to avoid the compliance with that “exogenous practices”. Moreover, the results support the idea that the Greek national code should be reshaped to fit the different country’s characteristics.
Research limitations/implications
The research limitations are associated with the content analysis methodology, as well as the reliability of corporate governance (CG)statements.
Originality/value
This study contributes to understanding in a more comprehensive manner the impact of Combined Code (2010) in Greek soft law. More specifically, based on a previous case study, this paper extends the seven analyzed factors of Koutoupis’ (2012) research to the total CG provisions of both codes. However, it goes further and develops a coding scheme to rate the level of compliance of the overlapping provisions.
Keywords
Acknowledgements
This paper draws on data collected from corporate governance in the Greek private sector, in state-owned enterprises and organizations and in public administration. Comparisons, results and proposals for improvement, a PhD thesis funded by the Heraclitus II: Investing in knowledge society through the European Social Fund. All errors remain ours.
Citation
Nerantzidis, M., Filos, J., Tsamis, A. and Agoraki, M.-E. (2015), "The impact of the Combined Code in Greek soft law: Evidence from ‘comply or explain’ disclosures", International Journal of Law and Management, Vol. 57 No. 5, pp. 445-460. https://doi.org/10.1108/IJLMA-05-2014-0036
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited