Evolution of German corporate governance (1995-2014): an empirical analysis

Rühmkorf, Andreas; Spindler, Felix; Samanta, Navajyoti

doi:10.1108/cg-07-2018-0251

Cited by 6 publications

(7 citation statements)

References 23 publications

(11 reference statements)

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Section: Literature Reviewsupporting

confidence: 78%

“…Similar arguments were also provided by Chhillar and Lellapalli (2015). A slowdown in convergence of insider models toward outsider model in the aftermath of the 2008 global financial crisis has been observed by many authors (Ru ¨hmkorf et al, 2020;Samanta, 2019) Many scholars have claimed that globalization has pressurized countries/organizations to approve the most efficient form (in their view) of CG. However, some others argued that this convergence could not occur due to path dependency.…”

Section: Corporate Governance Convergencesupporting

confidence: 53%

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Convergence and compliance of corporate governance codes: a study of 11 Asian emerging economies

Tariq

Ejaz

Bashir

2022

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Purpose The purpose of this paper is twofold. The first is to explore the convergence of corporate governance (CG) codes of 11 Asian emerging economies with the United Nations (UN) CG guidelines (United Nations Conference on Trade and Development ISAR benchmark). The second is to find the compliance level of firms in each country with the UN CG guidelines. Design/methodology/approach Based on the 2017 GDP growth rate, the top 11 emerging economies were selected. CG codes of each country were then analyzed by using content analysis to find the convergence level with the UN CG guidelines. To find the compliance level of individual firms in each sample country, a sample of the top 15 non-financial listed firms were selected from each country, and their annual reports were analyzed. The binary scoring method was used. Findings After analyzing the 11 national CG codes, 1 UN CG guidelines and 150 annual reports, this study found that Pakistan and Philippines CG codes have the highest level of convergence toward the outsider model recommended by UN CG guidelines, whereas China and India have the lowest compliance score. The Indian, Chinese, Malaysian and Indonesian listed firms showed more compliance toward the UN CG guidelines than their respective national CG codes. Originality/value By analyzing the top 11 emerging economies, and top 15 listed enterprises in each country, this study offered a combined convergence and compliance evidence at two different levels, i.e. country and firm-level. This study’s findings would be equally helpful for regulators, policymakers and investors in assessing their country’s CG codes against the international recommended best practices.

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Section: Literature Reviewsupporting

confidence: 78%

Section: Corporate Governance Convergencesupporting

confidence: 53%

Convergence and compliance of corporate governance codes: a study of 11 Asian emerging economies

Tariq

Ejaz

Bashir

2022

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“…In this paper, the positive and significant effect to increase CSR disclosure to attain a higher return of investment earning has been revealed. This empirical evidence extends the need to reform firms’ sustainability transparency to gain a higher market return of investment (Porter and Kramer, 2011; Rühmkorf et al , 2019; Samanta, 2019).…”

Section: Discussionsupporting

confidence: 57%

“…Yet, Eweje (2014) challenged CSR compliance in the reality of the weak law enforcement and unethical behaviour of corporations in some developing economies. In those complexities, external stakeholders, preferably from their investors, can alternate the pressures to induce more transparent CSR disclosure from firms to reduce asymmetric information (Eweje, 2011;Ru ¨hmkorf et al, 2019;Samanta and Johnston, 2019). This paper intends to find the association between CSR disclosure on asymmetric information.…”

Section: Correlation Between Corporate Social Responsibility Disclosu...mentioning

confidence: 99%

The effects of CSR disclosure on asymmetric information and RoI of publicly listed companies in SRI-Kehati index in Indonesia

Hasudungan

Bhinekawati²

2022

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Purpose This study aims to investigate the influence of corporate social responsibility (CSR) disclosure on asymmetric information and return on investment (RoI) in Indonesia. The research specifically assesses the effects of CSR disclosure along with other independent variables such as total assets, return on equity, capital expenditures, net profit margin and sales growth on asymmetric information and RoI. Design/methodology/approach The study applied a panel econometric regression model to examine and test the effects of CSR disclosure and financial indicators on asymmetric information and RoI. A total of 275 samples were garnered from private and state-owned publicly listed companies selected in the SRI-Kehati index as sustainable firms in Indonesia from 2009 to 2019. Those listed companies in the SRI-Kehati index have market recognition and are able to maintain sustainability practices in their business doings. Asymmetric information was calculated by measuring the spread of market share prices. CSR disclosure was measured with global reporting initiative standards. Other variables did not require calculation. Findings This study discerns the significant influence of CSR disclosure on asymmetric information and RoI on the listed firms of the SRI-Kehati Index in Indonesia. To articulate, the more transparent CSR disclosure is, the asymmetric information should be lower. Besides that, more comprehensive CSR disclosure is associated with a better corporate return of investment. In scrutinizing the control variables, this research validates the significant influence of corporate assets and sales revenue on both dependent variables. Research limitations/implications This research has some limitations that require further research. First, the research was conducted in Indonesia. However, other Southeast Asian markets may have their own uniqueness. Therefore, further research is needed in other specific Southeast Asian countries. Second, the sampling bounds on the corporation which gained sustainable recognition in SRI-Kehati Index. Future studies can extend more observation by comparing SRI-Kehati index to firms, which are not listed in the index. Practical implications This study recommends better capital market monitoring and evaluation to improve the quality of the firms’ reports in both business and social aspects. By investing more in philanthropic and social activities, firms can signal the market credibility to their various external stakeholders on their market adjustment to changing external business environment. Social implications As for society, robust CSR disclosures will facilitate investors’ understanding of the conditions before making an investment in public listed companies. At the same time, companies issuing the disclosures are expected by society to perform responsibly, as illuminated in the report. As a result, the CSR disclosures will create a virtuous cycle of sustainability between the company and the society. Originality/value First, this research reinforces the global corporate governance concern to urge more corporate disclosures on firm performance in an Indonesian context. Second, this study fills the research gap on the association of CSR disclosure to asymmetric information in Indonesian literature. Third, the findings underpin the integration of social responsibility on the firms’ core business decision-makings to warrant business credibility to all firms’ stakeholders in Indonesia.

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“…The initiative of launching a corporate governance code was taken up comparatively late in Germany; the first code of best practice, developed by the Policy Commission Corporate Governance in 2000 (Rühmkorf et al, 2019(Rühmkorf et al, , p. 1047. Indeed, the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) has undertaken several actions in terms of Assisting developing countries and transition economies to strengthen their regulatory in order to enhance corporate transparency and accountability, they issued a Guidance of Good Practices in Disclosure as a benchmark of good corporate governance (UNCTAD, 2006).…”

Section: Introductionmentioning

confidence: 99%

Beyond Dichotomous Approach, Experts Method Compatibles with an Information System View for Developing a Valid Corporate Governance Index

Abdallah

2021

JCGR

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This paper provides a critical review of the corporate governance quantification process at academic and professional levels to scrutinize the main troubles in the black box of CG assessment models and spot some lights on how to develop a valid Corporate Governance Index (CGI) at the firm and industry levels regarding evenly the entire stakeholders' perceptions. Prior literature has been reviewed and a Corporate Governance index was constructed merging the power of multi-methodologies: Principal Component Analysis (PCA), Delphi Technique and Stability analysis. The findings show that the validity of the results necessitates enforcing End to End processes and taking into account the country's individualization to increase the reliability and comparability of the results. As well, the governance ratings are sensitive to the applied methodology, particularly, a well-known approach in quantifying CG, i.e., dichotomous approach, is underestimated the index findings then it will directly affect all aspects of governance endogeneity with firm’s performance/value. This research has important practical implications for governance guidelines setters, companies, stakeholders and other researchers. For the G setters, it underlines the necessity to make harmonization between industries' regulations and governance code, and revise the priority of the "comply or explain" approach in practice; which could serve as a roadmap for future improvements and researches. For companies, this paper highlights which effective G mechanisms and urges the role of the boardroom in monitoring and explanations for non-compliance. For CGI users, the research highlights that ratings' users should be more precautions and concerned about the base of the assessing models.

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Evolution of German corporate governance (1995-2014): an empirical analysis

Cited by 6 publications

References 23 publications

Convergence and compliance of corporate governance codes: a study of 11 Asian emerging economies

Convergence and compliance of corporate governance codes: a study of 11 Asian emerging economies

The effects of CSR disclosure on asymmetric information and RoI of publicly listed companies in SRI-Kehati index in Indonesia

Beyond Dichotomous Approach, Experts Method Compatibles with an Information System View for Developing a Valid Corporate Governance Index

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