Chapter

Corporate Governance in Germany: An Economic Perspective

Reinhard H. Schmidt

in The German Financial System

Published in print March 2004 | ISBN: 9780199253166
Published online January 2005 | e-ISBN: 9780191601651 | DOI: http://dx.doi.org/10.1093/0199253161.003.0012
 Corporate Governance in Germany: An Economic Perspective

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Analyses German corporate governance under the aspect of whether it was, and possibly still is, a consistent and economically efficient system composed of complementary elements. The author shows that it was, and still is, an insider-control system in which several influential stakeholder groups govern corporations according to the concept of stakeholder orientation. In recent years, several steps that aim at modernising the system have been taken. The system has indeed become more modern and shareholder-friendly, but also less consistent than it used to be. Moreover, so far the recent developments have not had the effect of transforming German corporate governance in a fundamental way and converting it into a capital market-oriented and outsider-control system.

Keywords: complementarity and consistency; corporate governance system; insider control; investor protection; modernisation; stakeholder orientation; supervisory board

Chapter.  17495 words.  Illustrated.

Subjects: Financial Markets

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