scholarly journals Corporate governance reporting: Compliance with upper limits for severance payments to members of executive boards in Germany

2020 ◽  
Vol 2 (2) ◽  
pp. 18-32 ◽  
Author(s):  
Alexander Dilger ◽  
Ute Schottmüller-Einwag
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Corporate Governance Code ◽  
Severance Payments ◽  
Upper Limits ◽  
Executive Boards ◽  
Comparative Corporate Governance ◽  
The Capital Market

We examine how corporate governance reporting corresponds to actual conduct regarding severance payment caps for prematurely departing members of executive boards in Germany. Firstly, we evaluate the declarations of conformity for all companies listed in the CDAX between 2010 and 2014, which we use to determine conformity and deviation rates, and analyse the reasons for deviation, contributing to current research on comparative corporate governance, which focuses on when, why and how companies deviate from legitimate corporate governance goals (Aguilera, Judge, & Terjesen, 2018). Secondly, we assess the compensation amounts of all severance payments made and published by DAX companies to compare the respective severance ratio with the cap recommended by the German Corporate Governance Code (GCGC). We find that more than 20% of companies listed in the CDAX declared deviation in the declaration of conformity. Moreover, in 57% of actual severance cases where DAX companies had previously declared their conformity, the cap was exceeded. Yet, none of the companies that had exceeded the cap disclosed this in the following declaration of conformity. In most cases, the corporate reports deviated from reality and therefore could not serve as a suitable basis for decisions by the capital market.

scholarly journals Quality of corporate governance: Contribution to improving companies performance in Bosnia and Herzegovina

2021 ◽  
Vol 9 (2) ◽  
pp. 19-33
Author(s):  
Slobodan Marin ◽  
Rade Tešić ◽  
Milan Šušić
Keyword(s):  
Corporate Governance ◽  
Bosnia And Herzegovina ◽  
Capital Market ◽  
Business Performance ◽  
Business Environment ◽  
Governance System ◽  
Corporate Governance System ◽  
Business Conditions ◽  
The Capital Market

A quality corporate governance system is a basic prerequisite for a sustainable growth economy, more easily increasing the efficiency of the economic system and guaranteeing access to external sources of capital. The level of quality of corporate governance can be defined as the degree of fulfillment of set standards of corporate governance defined at the international and national institutional level. In the new, modern business conditions, with strong dynamic changes in the social and business environment, modern corporate companies, ie their management bodies, are taking on new characteristics, adapting to new requirements and challenges. In this sense, the new demanding business conditions require continuous improvement of corporate governance potential. Based on previous theoretical and empirical knowledge, Bosnia and Herzegovina has the characteristics of a closed corporate governance system in both entities, so, as a basis for developing models for measuring the level of corporate governance, selected models that measure corporate governance in countries with typical closed corporate governance systems. A significant number of studies show that corporations that achieve higher standards and better corporate governance practices also have better business performance results and thus greater value in the capital market. This means that corporations with a higher level of corporate governance also have better financial operating results, easier access to financial capital, and greater value in the capital market. The main purpose of the research is to determine the level of influence of the quality of corporate governance on business performance, ie to determine whether corporations that had good corporate governance had higher business liquidity and vice versa. The main goal of the research is to establish the link and relationship between quality and corporate performance management indicators of the corporation's business.

Current Disclosure and Transparency Practices in Saudi Corporate Governance

2014 ◽  
Vol 28 (2) ◽  
pp. 176-192 ◽  
Author(s):  
Faleh Salem al-Kahtani
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Annual Reports ◽  
Governance System ◽  
Corporate Governance System ◽  
The Capital Market

This article will investigate the current disclosure and transparency practices in the Saudi corporate governance system. The purpose of this article is to examine whether the disclosure and transparency requirements are satisfied, adequate and respected by the Saudi listed corporations. The disclosure and transparency prerequisites are also measured, and some of the main facets that have been sustained until now by the listed corporations are explored. In particular, a variety of the main disclosure and transparency ideologies that have been violated by some of the listed corporations are provided. In additional, the significance of disclosure and transparency in company annual reports is debated. The Capital Market Authority Board has consequently imposed fines on listed corporations responsible for violations. The Capital Market Authority Board has taken the defamation approach as punishment for such listed corporations.

scholarly journals Momentous of Corporate Governance in the Capital Market

2018 ◽  
Vol Volume-2 (Issue-5) ◽  
pp. 1055-1061
Author(s):  
Mayank Goyal ◽  
Dipanshu Mishra ◽  
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
The Capital Market

Convergence of corporate governance systems: A legal transplant perspective

2018 ◽  
Vol 24 (5) ◽  
pp. 450-470 ◽  
Author(s):  
Ulf Larsson-Olaison
Keyword(s):  
Corporate Governance ◽  
Alternative Model ◽  
Evaluation Criteria ◽  
Legal Reform ◽  
Theoretical Understanding ◽  
Legal Transplant ◽  
Legal Studies ◽  
Corporate Governance Code ◽  
Governance Systems ◽  
Comparative Corporate Governance

The predominant approaches to comparative corporate governance view legal transfers dichotomously, seeing corporate governance systems as either converging or diverging as a result of legal reform. Drawing on legal studies, this paper proposes an alternative model using the metaphor of the staircase to conceptualize how legal transplants can meet different evaluation criteria before being considered ‘successful’. The model is empirically illustrated by the introduction of the Swedish Corporate Governance Code. It is found that different corporate governance rules when transplanted could be said to meet evaluation criteria more or less strictly. This finding has implications for our empirical and theoretical understanding of how corporate governance systems converge.

scholarly journals Notícias do mercado de capitais e janelas de eventos para adesões e migrações aos NDGCs

2018 ◽  
Vol 17 (1) ◽  
pp. 245-282
Author(s):  
Ricardo Adriano Antonelli ◽  
Ademir Clemente ◽  
Romualdo Douglas Colauto
Keyword(s):  
Corporate Governance ◽  
Qualitative Analysis ◽  
Event Study ◽  
Market News ◽  
Capital Market ◽  
Event Studies ◽  
The Capital Market

Resumo: Neste artigo teve-se como objetivo analisar a influência das notícias relacionadas ao mercado de capitais na determinação da janela do evento para adesões e migrações aos Níveis Diferenciados de Governança Corporativa (NDGCs) da B3 (Brasil, Bolsa, Balcão). A metodologia emprega quatro etapas: determinação do melhor tamanho da janela para 104 empresas; análise do tamanho das janelas consideradas outliers; análise qualitativa das notícias referentes à janela do evento para os outliers, com base no Bloomberg®; e aplicação do Estudo de Eventos para os casos considerados outliers. Os resultados encontrados indicaram uma tendência de pequenas janelas, limitadas a 5-5 dias para cerca de 59,6% dos casos. Para os 42 casos considerados outliers, isto é, janela maior que 5-5 dias, foram encontradas notícias para 61,9%, dos quais apenas 6 casos apresentaram dummies significativas no Estudo de Eventos. A metodologia utilizada conseguiu explicar 68 casos em que houve adesão, migração ou notícia.Palavras-chave: Governança Corporativa. Estudo de eventos. Janelas de eventos. Notícias. Capital market news and windows of events for accessions and migrations to NDGCs Abstract: This article aims to analyze the influence of news related to the capital market in determining the window of the event for accessions and migrations to the BM&FBovespa NDGCs. Four steps are followed: determinig the best size of the window for 104 companies; analysing the size of the Windows which are considered outliers; qualitative analysis of the news related to the window of events for outliers, based on Bloomberg®; and application of the Event Studies for the cases considered outliers. The results of the study indicated a tendency of small windows, limited to 5-5 days for about 59.6% of the cases. For the 42 cases considered outliers, i.e, window bigger than 5-5 days, news was found for 61.9%, from which just 6 ones got meaningful dummies in the Event Study. Even though, the applied methodology succeded explaining 68 of the cases in which there was accession, migration or news.Keywords: Corporate Governance. Windows of Events. Janelas de eventos. News.

scholarly journals Investigations Regarding the Influence of Corporate Governance on Financial Performance. Empirical Study on Banks Listed on the Romanian Capital Market

2019 ◽  
Vol 13 (1) ◽  
pp. 35-42
Author(s):  
Tatiana Dănescu ◽  
Maria-Alexandra Popa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Capital Market ◽  
Stock Exchange ◽  
Compliance Rate ◽  
Annual Reports ◽  
Corporate Governance Code ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Development Context

AbstractThe role of corporate governance in achieving the financial performance in a sustainable development context is recognized. A fundamental premise in defining and applying good corporate governance is the area of the elements that describe the structure of the capital, elements that influence the guidelines and policies of the Board of Directors regarding the obtaining of the financial performance. On the equation “share capital - financial performance” we find the imprint of the compliance rate of the management statements with the requirements of the Corporate Governance Code applicable on the capital market on which the entity trades its shares. In this context, considering the compliance of the management statements published in the set of annual reports with the Corporate Governance Code, our researches investigate the relationship between the capital structure and the financial performance of the banks listed on the Bucharest Stock Exchange.

Corporate Governance and the Capital Market in Ghana: The Stymieing Role of the State

2018 ◽  
Vol 26 (3) ◽  
pp. 285-308 ◽  
Author(s):  
Justice Srem-Sai
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Real Life ◽  
The State ◽  
Controlling Shareholder ◽  
Role Of The State ◽  
Governance Practices ◽  
The Capital Market

Ghana's capital market is greatly undervalued, extremely concentrated and widely divorced from the country's actual economy. Investors prefer sole proprietorships and closely held businesses, and are antipathetic towards the capital market. This article seeks to implicate the state as the main cause of this antipathy. The article will argue that this antipathy is a consequence of the repeated failure of the state-owned or state-controlled enterprises or corporations (collectively referred to as ‘SOEs’). It will, through real-life cases, also show that the failure of SOEs in Ghana is as a result of bad corporate governance practices by the state in respect of wholly state-owned corporations and, later, in corporations in which the state became a controlling shareholder. The article, further, attempts to link the economic challenges in Ghana to the failure of its SOEs.

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