scholarly journals The Societas Europaea – a step towards convergence of corporate governance systems?

2007 ◽  
Vol 4 (4) ◽  
pp. 10-18 ◽  
Author(s):  
Udo C Braendle ◽  
Juergen Noll
Keyword(s):  
Corporate Governance ◽  
Organisational Structure ◽  
Anglo Saxon ◽  
Governance System ◽  
Major Step ◽  
Legal Form ◽  
The United Kingdom ◽  
Governance Systems ◽  
Societas Europaea ◽  
Corporate Governance System

Since October 2004 the idea of a European Company, the Societas Europaea, has become reality and companies are allowed to incorporate in this legal form. Concerning corporate governance the Statute allows the companies to choose between a two-tier organisational structure typical for Civil Law countries and a one-tier organisational structure which is predominant in Anglo-Saxon Common Law countries. By analysing the regulations of Austria and the United Kingdom for the two board systems to elaborate the respective advantages and pitfalls, we find a strong evolution of the systems towards each other. As the board system is an integral component of a corporate governance system, the Societas Europaea highlights a major step towards convergence of these systems

The effect of borrower country financial system and corporate governance system types on the spread of syndicated loans

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nuno Moutinho ◽  
Carlos Francisco Alves ◽  
Francisco Martins
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Financial Systems ◽  
Content Type ◽  
Financial Firms ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Lower Interest Rate ◽  
Loan Spreads ◽  
The Cost

Purpose This study aims to analyse the effect of borrower’s countries on syndicated loan spreads, featuring countries according to institutional factors, namely, financial systems and corporate governance systems. Design/methodology/approach This study is an empirical investigation based on a unique sample of more than 85,000 syndicated loans from 122 countries. The paper uses standard and two-stage least squares regression analysis to test whether the types of financial and corporate governance systems affect loan spreads. Findings The paper finds that borrowers from countries with financial systems oriented towards the banking-based paradigm pay lower interest rate spreads than those from countries with financial systems oriented towards the market-based paradigm. In addition, there is evidence that borrowers from countries with more developed financial systems pay lower spreads. The results also show that borrowers from countries with an Anglo-Saxon governance system pay higher spreads than borrowers from countries with a Continental governance system. Research limitations/implications This study does not consider potential promiscuous relationships that can arise at the ownership structure and governance level between banks and borrowers and may affect loan spreads. Practical implications This study suggests that financial and corporate governance systems are essential factors in the financial intermediation process. Furthermore, the evidence indicates that corporates with higher potential agency costs and higher potential information asymmetry are requested to pay higher spreads. Therefore, the opportunities to such corporates invest optimally tend to be scarcer. Originality/value The paper highlights the impact of institutional factors on the cost of financing, characterising the countries according to the type of financial system and the type of corporate governance system. The study finds that borrowers from countries with bank-based financial systems pay lower interest rate spreads than those from countries with market-based financial systems. The paper also highlights how the level of financial development affects the cost of financing. The paper focusses on non-financial firms, unlike financial firms, which have been the focus of several empirical studies on topics relating to the cost of funding and corporate governance.

Corporate Governance-Systeme und Unternehmensfinanzierung - Empirische Befunde für deutsche Großunternehmen / Corporate Governance-Systems and Corporate Financing – Empirical Evidence for large corporations in Germany

ORDO ◽  
2013 ◽  
Vol 64 (1) ◽  
Author(s):  
Elmar Gerum ◽  
Sascha H. Mölls
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Sich Eine ◽  
Governance System ◽  
Corporate Financing ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Large Corporations

ZusammenfassungDas Ziel des Beitrages ist es zu prüfen, ob und inwieweit sich das deutsche Corporate Governance-System, insbesondere die Unternehmensfinanzierung, im Zuge des Systemwettbewerbs an internationale Standards angeglichen hat. Dazu wird das deutsche System zunächst im Kontext alternativer Corporate Governance-Systeme verortet. Danach werden empirische Befunde zur Struktur der Unternehmensfinanzierung sowie flankierender Institutionen in deutschen Großunternehmen präsentiert und erklärt. Es zeigt sich, dass heute eine effiziente Mischfinanzierung typisch ist, die die traditionellen Vorteile einer Bankenfinanzierung mit den Möglichkeiten des Kapitalmarkts kombiniert. Im Lichte der Befunde empfiehlt sich eine Neuorientierung von Forschung und Politik zu Corporate Governance.

The Role of Finance and Corporate Governance in National Systems of Innovation

2007 ◽  
Vol 28 (10) ◽  
pp. 1461-1481 ◽  
Author(s):  
Andrew Tylecote
Keyword(s):  
Corporate Governance ◽  
Three Dimensions ◽  
Governance System ◽  
Systems Of Innovation ◽  
Governance Systems ◽  
Variation Patterns ◽  
Technological Advantage ◽  
Corporate Governance System ◽  
National Systems

Firms are central actors in innovation, and their actions are much affected by their corporate governance and the finance available. Thus a country's finance and corporate governance system is a key element of its national system of innovation. The technological regimes of sectors (and sub-sectors) vary in ways that affect the demands innovation makes on the financial and corporate governance system. Finance and corporate governance systems (FCGSs) vary among countries in their ability to meet these demands. By setting three dimensions of regime variation alongside the three corresponding dimensions of FCGS variation, patterns of relative and absolute technological advantage among economies can be largely explained — particularly when the focus is on nationality of firm rather than location of activity.

scholarly journals The Effectiveness of Corporate Governance in Uganda: The Case of Private Companies

2021 ◽  
Vol 9 (5) ◽  
Author(s):  
David Lwanga ◽  
Doreen Basemera
Keyword(s):  
Corporate Governance ◽  
Private Sector ◽  
Extensive Review ◽  
Review Of Literature ◽  
Governance System ◽  
Private Companies ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Ethnographic Observation ◽  
Key Issues

This paper examines the effectiveness of rules, procedures and Acts as instruments of corporate governance in Uganda, with interest in the performance of private companies. An extensive review of literature and ethnographic observation of the dynamic of corporate governance in private companies indicate that much as the private companies have adopted a hybrid regulatory framework of corporate governance, loopholes do still exist that have hindered the effectiveness  of these instrument in the performance of private companies. Therefore there is need for strengthening corporate governance systems; however some of the weakness are attributed to the unsolved debate on key issues of corporate governance globally that trickles down to Uganda’s young corporate governance system in the private sector.

Directors’ duties in the context of Confucianism

2015 ◽  
Vol 22 (1) ◽  
pp. 37-47
Author(s):  
Charles KN Lam ◽  
S.H. Goo
Keyword(s):  
Corporate Governance ◽  
Common Law ◽  
Fiduciary Duty ◽  
Moral Principle ◽  
Duty Of Care ◽  
Governance System ◽  
Content Type ◽  
The United Kingdom ◽  
Corporate Governance System ◽  
The Law

Purpose – The purpose of this paper is to demonstrate how Confucianism can be applied in the areas that are now governed by company law in the common law system and how it can play a role in improving corporate governance. A gentleman in the context of Confucianism tends to be inclusive and broad-minded in embracing the interest of different stakeholders. In fact, he will balance the interests of shareholders and other stakeholders if there is any inherent conflict and try to achieve a win-win situation. Ultimately, he will run the company not just for profit-making but for social justice and commitment. Design/methodology/approach – The authors examine the leading cases in Hong Kong and the United Kingdom about the law of fiduciary duty and the duty of care and its relationship with Confucianism. In this respect, we review the teachings of the traditional Confucian texts and use Confucianism to fill in the gap where common law rules cannot reach. In addition, we adopt a comparative study approach in examining the law of directors’ duties in Hong Kong, China and the United Kingdom. Findings – It can be seen that the concept of fiduciary duty and duty of care is quite complicated and evolving and always subject to the interpretations of the court from time to time. For fiduciary duty, the term itself is quite conceptual and not immediately available to the general public. But loyalty in the context of Confucianism is a very lively and down-to-earth moral principle. Besides, fiduciary duty is imposed from outside, where directors had no choice but to accept. But loyalty in the context of Confucianism is something inherent and something from within. It is a moral principle that if you deeply understand the meaning of it, you will automatically accept it as a good virtue and your conduct will naturally be guided by such a principle. Confucianism can thereby be used to fill the gap where rules and regulations cannot reach. Confucian business ethics and common law rule should be complementary to each other in the development of a Chinese corporate governance system. Originality/value – This paper is the first of its kind in discussing the relationship between the law of directors’ duties and Confucianism. It argues that Confucianism plays a crucial role in guiding the behavior of the directors and can supplement the abstract principles of directors’ duties in the context of a Chinese corporate governance system.

scholarly journals Corporate governance and propensity to share information: The long-run effect

2012 ◽  
Vol 10 (1) ◽  
pp. 399-407
Author(s):  
Anna Blajer-Gołębiewska ◽  
Leszek Czerwonka
Keyword(s):  
Corporate Governance ◽  
Information Asymmetry ◽  
Abnormal Returns ◽  
Governance System ◽  
Information Index ◽  
Long Run ◽  
Governance Systems ◽  
Corporate Governance System ◽  
The Impact ◽  
Share Information

The optimal corporate governance system aims to give shareholders confidence that a company is managed efficiently, to create the highest possible profit and to preserve a firm’s reputation. The aim of the research is to find out if the lower level of information asymmetry in corporate governance systems in the Polish listed companies implies higher rates of return for shareholders in the future. We put forward a hypothesis that the impact of lower information asymmetry on company’s performance is overestimated and in reality no long-run effect on the higher abnormal returns occurs. Taking into consideration the initial level of propensity to share information index we analysed future buy-and-hold abnormal returns achieved by 61 companies during the next 3 years.

scholarly journals CEO TURNOVER AND CORPORATE PERFORMANCE RELATIONSHIP IN PRE- AND POST- IFRS PERIOD: EVIDENCE FROM TURKEY

2012 ◽  
Vol 13 (3) ◽  
pp. 421-442 ◽  
Author(s):  
Banu Durukan ◽  
Serdar Ozkan ◽  
Fatih Dalkilic
Keyword(s):  
Corporate Governance ◽  
Performance Measures ◽  
Corporate Performance ◽  
Ceo Turnover ◽  
Financial Accounting ◽  
Governance System ◽  
Governance Systems ◽  
Corporate Governance System ◽  
The Impact ◽  
The Relationship

This study investigates CEO turnover and corporate performance relationship as a measure of the effectiveness of a corporate governance system. The impact of different financial accounting regimes on the turnover/performance relationship is also analyzed. If systems replace poorly performing managers, they are considered as not ineffective. The results provide evidence that corporate governance systems with poor governance characteristics may not be ineffective, due to the existence of alternative governance mechanisms. The disciplinary CEO turnover is found to be more strongly associated with corporate performance compared to voluntary CEO turnover, whereas in the IFRS subsample the relationship is stronger with contemporaneous performance measures.

Corporate Governance von Sparkassen – eine anreiztheoretische Analyse der Vergütung der Sparkassenvorstände in Nordrhein-Westfalen

2019 ◽  
Vol 42 (4) ◽  
pp. 358-375
Author(s):  
Corinna Ewelt-Knauer ◽  
Anja Schwering ◽  
Sandra Winkelmann
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Governance Systems ◽  
Corporate Governance System

Ein funktionsfähiges Corporate-Governance-System ist insbesondere für Sparkassen von zentraler Bedeutung, weil bei der Erfüllung des öffentlichen Auftrags eine Vielzahl divergierender Stakeholderinteressen zu berücksichtigen ist. Um das Handeln der Sparkassenvorstände im Sinne der Stakeholder zu lenken, werden von den regionalen Sparkassenverbänden in NRW Empfehlungen erlassen, die die Höhe und Struktur der Vergütung bestimmen. Vorliegend wird ein Überblick über das Corporate-Governance-System der Sparkassen gegeben und analysiert, ob und inwieweit die in der Vergütung gesetzten Anreize mit den Zielen des Corporate- Governance-Systems übereinstimmen und wie diese verbessert werden können.

scholarly journals The Corporate Governance Models for Banks: A Comparative Study

2021 ◽  
Vol 16 (1) ◽  
pp. 210-220
Author(s):  
Salah U-Din
Keyword(s):  
Corporate Governance ◽  
Banking System ◽  
Anglo Saxon ◽  
Governance System ◽  
Lower Margin ◽  
Financial Outcomes ◽  
Governance Model ◽  
Corporate Governance System ◽  
Distribution Of Resources ◽  
Governance Models

Abstract An effective corporate governance system is vital in modern-day economics and firms. It can help to specify the distribution of roles, responsibilities, and resources among various stakeholders of an organization or society. The enhanced role of the banks in various economic systems demands a higher level of corporate bank governance for a stable and sustainable financial system. In this paper; four major corporate governance models of banks are compared and the financial outcomes of each model are analyzed to assess their alignment with expectations of an effective corporate governance system. The Continental corporate governance model found to be closer to the expectations of an effective corporate governance system compared to the Anglo- Saxon, Chinese, and Islamic banking. Banks under the Continental model charge lower margin to its customers, use bank resources more efficiently and create relative balance in the distribution of resources among all stakeholders compared to the other three models. Banks under the Anglo- Saxon model are charging higher margin to its customer, Chinese banks are under-utilizing the banks’ resources, and Islamic banks are more favoring their shareholders and are riskier among banks of all selected models. Higher involvement of the more stakeholders in the decision-making process of the banks is key to effective corporate governance and sustainable banking system. Reforms in all corporate governance models are recommended while keeping in mind the prior research on corporate governance especially the Sir Adrian Cadbury report.

Wirksamkeit der Kontrollen im Corporate-Governance-System der Sparkassen

2021 ◽  
Vol 44 (2) ◽  
pp. 280-300
Author(s):  
Corinna Ewelt-Knauer ◽  
Anja Schwering ◽  
Sandra Winkelmann
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Governance Systems ◽  
Corporate Governance System

Da Sparkassen einen öffentlichen Auftrag erfüllen müssen, der ihr Bestehen gesetzlich legitimiert, zeichnet sich ihr Corporate-Governance-System durch Besonderheiten aus. Diese Besonderheiten wirken sich nicht nur auf die Vorstandstätigkeit, sondern auch auf die Tätigkeit der Kontrollorgane aus, welche eine nachhaltige Erfüllung des öffentlichen Auftrags prüfen und gewährleisten sollen. Nach einer Vorstellung des Corporate-Governance-Systems beschäftigt sich der Beitrag daher mit der Frage, ob und wie allgemeine Herausforderungen, die durch das System bedingt sind, sowie besondere Herausforderungen, die sich aus der langanhaltenden Niedrigzinspolitik ergeben, die Effektivität der Kontrollen beeinflussen.

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