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This paper aims to provide empirical evidence on the extent of alteration institutional characteristics, i.e. legal origin and corruption levels, may have on the signaling effects of auditors’ reputation, underwriters’ reputation and ownership retention on initial public offering (IPO) initial returns in OECD countries.

Cross-sectional data composed of 6,182 IPOs from 30 OECD countries are used for 2003-2012. Ordinary least square with multiple linear regressions is used to test the hypotheses.

The findings indicate that the legal framework and corruption level of a country alters the signaling effects of underwriters’ reputation, auditors’ reputation and ownership retention in an IPO environment. These three variables mitigate information asymmetry, signal firm value to potential investors and ultimately decrease IPO initial returns. This relationship is more significant in the civil law countries. Corruption levels negatively moderate the relationship in the common law and Scandinavian civil law countries but have no significance in the German and French civil law countries, indicating the importance of the signaling variables in these two civil law countries.

This study examines the extent of the alterations that the legal framework and the corruption levels cause to the signaling relationship between auditors’ reputation, underwriters’ reputation and ownership retention on IPO initial returns in selected OECD countries.

The purpose of this paper is to compare, contrast and evaluate the anti‐money laundering (AML) legislation practised by the UK, Switzerland and Germany.

To facilitate the evaluation process, AML legislations and regulations of all three countries are compared based on four different aspects, i.e. criminal law, the reporting stage, the collation stage and the investigation stage.

Although specific differences and similarities between the three AML regimes are highlighted, based on the current literature, it is rather difficult to reach a valid conclusion regarding their effectiveness and efficiency.

A wide range of literature, in the original languages, was analyzed during the compilation of this paper.

Since the European Union’s (EU) Charter of Fundamental Rights became binding in 2009, data protection has attained the status of a fundamental right (Article 8) throughout the EU. This chapter discusses the relevance of data protection in the context of security. It shows that data protection has been of particular relevance in the German context – not only against the backdrop of rapidly evolving information technology, but also of the historical experiences with political regimes collecting information in order to oppress citizens.

There are many opportunities to purchase plants and factories in the five new states that once composed the German Democratic Republic. Here are some planning considerations to help firms navigate around the legal, financial, and environmental pitfalls.

The purpose of this study is to examine whether the quality of financial reporting has improved after the adoption of International Financial Reporting Standards (IFRS) in Europe and across the world. The study investigates the impact of IFRS on income smoothing and earnings management in different geographic regions under different legal origins and disclosure environments.

To measure income smoothing in the pre- and post-IFRS periods, the authors use the coefficient of variation and the panel unit root model proposed by Im et al. (2003) for testing whether net income is stationary throughout the sample period. The study uses a dynamic panel estimation framework, as it captures the dynamics of IFRS on discretionary accruals efficiently. Discretionary accruals are used to measure earnings management.

The results suggest that the adoption of high quality standards, such as IFRS, reduces income smoothing and earnings management. In addition, the study finds that earnings management has decreased in the post-IFRS period, in particular, for French and Scandinavian civil law countries, but not for German civil law countries and common law countries. The latter can be explained by the fact that common law countries have strong investor protection laws, strict law enforcement and high disclosure levels of financial information. The study also finds empirical evidence that the adoption of IFRS reduces earnings management in countries with high levels of financial disclosure. Overall, the study shows that the adoption of IFRS improved the quality of financial reporting.

This study is useful for accounting standard setters across the world, including those countries that have not yet decided to adopt IFRS. The study contributes to the literature by examining the adoption of IFRS in income smoothing and earnings management under different legal regimes and disclosure environments by using advanced empirical methodologies.

Corporate social responsibility (CSR) is often characterized as a voluntary approach, but CSR policy is on the rise: Governments have started to promote CSR by raising awareness, launching partnerships and platforms, providing financial incentives and requiring environmental and social reporting (Albareda, Lozano, & Tamyko, 2007; Gond, Kang, & Moon, 2011; Steurer, 2010; Steurer, Martinuzzi, & Margula, 2012). This chapter describes how the German government facilitates CSR, that is it analyses the main instruments at the national level and takes a look at the motivation of the German government.

Based on the framework of CSR policy developed by Steurer, Margula, and Berger (2008) and Steurer (2010), the chapter examines CSR initiatives in five areas: informational or endorsing instruments, partnering instruments, hybrid instruments, financial or economic instruments and soft legal instruments. The analysis rests on a documentary review of various sources referencing German CSR initiatives.

German CSR policy comprises all sorts of instruments, whereas hybrid instruments play an important role: the Strategy for Sustainable Development, the National CSR Forum and National Action Plan on CSR as well as the National Action Plan for Business and Human Rights.

This chapter contributes to the rising literature on public policies on CSR by discussing the manifold measures that the German government has developed to support CSR.

The attempt to establish a common European framework for core platforms' duties and responsibilities toward other actors in the digital environment is at the core of the recent scholarly debate surrounding the Digital Markets Act (DMA) proposal. In particular, the everlasting juxtaposition between the “data power” – as emerging from recent cases (Section 2) – that dominant tech companies enjoy and the concept of consumer sovereignty (Section 3) lies at the core of the proposal's attempt to identify digital core platforms as market gatekeepers. Accordingly, this chapter critically investigates the divide between power imbalance and consumer sovereignty in light of the architecture designed by the DMA, with a specific focus on its effectiveness in identifying gatekeepers' power drivers (Section 4). After highlighting the main critical aspects of the pertinent rules, opportunities for fruitful developments are then identified through the reframing of some of the notions considered in the proposal, and namely the role of “lock-in” effects and “data accumulation” (Section 5). Lastly, this chapter suggests that the DMA advancements – while desirable – are bound to be fragmentary in the absence of a wider appraisal of the nature of data power imbalance dynamics in the modern digital markets (Section 6).

This paper focuses on the employment practices of both multinational corporations (MNCs) and large national competitors in the German fast‐food industry, such as Burger King, Pizza Hut, Nordsee, McDonald’s, Churrasco and Blockhaus. The paper poses a number of questions. Have the activities of MNCs affected the employment practices of national companies? Are companies adopting union exclusion policies and if so why and to what extent? Does the “country of origin effect” help explain the activities of MNCs? What changes are evident in workers’ terms and conditions and how effective are statutory systems of employee representation in practice? The findings suggest that Anglo‐Saxon‐based MNCs are more likely to adopt anti‐works council and non‐union policies in the sector, suggesting that MNCs may indeed be able to transfer their management practices across borders, imposing their employer‐based systems with little regard for German institutional arrangements.

The German Supply Chain Due Diligence Act (GSCDDA), as a comprehensive regulation for due diligence in supply chains, will exert profound pressure on companies’ sustainable supply chain management (SSCM). This study aims to examine the affected stakeholders’ polarizing expectations stemming from the GSCDDA, the resulting impacts on SSCM and how these findings compare with theoretical SSCM developments.

From 5,490 GSCDDA posts on X (formerly “Twitter”), the authors extracted 556 qualitative posts illustrating the GSCDDA discourse and analyzed them from a stakeholder perspective. The posts were classified according to the dimensions of stakeholder groups and expectations (i.e. challenges and opportunities). The authors then synthesized the posts across these dimensions and compared the identified expectations with the SSCM literature.

Seven stakeholder groups were identified, along with nine challenges (e.g. legal flaws) and four opportunities (e.g. increased transparency). The synthesis of both components revealed highly discussed and conflicting expectations. The theoretical SSCM developments partly differ from the discourse, indicating discernible gaps between theory and practice

Identifying key stakeholder groups supports building synergies between GSCDDA implementers and stakeholders to tackle their challenges and reinforce opportunities.

Due to the growing prevalence of supply chain due diligence regulations, it is essential to consider the legal implications for SSCM. This study explores the link between due diligence concepts and SSCM, and to the best of the authors’ knowledge, this is the first study to analyze how legal pressure shapes stakeholders’ expectations on companies’ SSCM.