Reference : Shareholder Value Implications of Compliance with the German Corporate Governance Code
Scientific journals : Article
Business & economic sciences : Accounting & auditing
Finance
http://hdl.handle.net/10993/28444
Shareholder Value Implications of Compliance with the German Corporate Governance Code
English
Kaspereit, Thomas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Lopatta, Kerstin mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > >]
Onnen, Dennis []
2015
Managerial & Decision Economics
John Wiley & Sons, Inc. - Business
Forthcoming
Yes (verified by ORBilu)
International
0143-6570
1099-1468
[en] Corporate Governance ; Value Relevance ; German Corporate Governance Code
[en] This study contributes to the ongoing discussion of the German Corporate Governance Code (GCGC) of the Regierungskommission Deutscher Corporate Governance Kodex (Government Commission), which should enhance the confidence of national and international investors. We apply the Feltham and Ohlson (1995) valuation model to a panel dataset of 421 German CDAX firms over the period 2002–2012 and find a positive effect of the level of compliance with the GCGC on the market value of firms. We conclude that the recommendations of the GCGC reflect corporate governance that satisfies investors' needs, as the capital markets perceive them. Our results are in favor of the efforts of the Government Commission, which have attracted criticism from both theorists and practitioners both in the past and at present. From the perspective of managerial and decision economics, the empirical results of this study suggest that executives should follow as many recommendations of the GCGC as possible.
http://hdl.handle.net/10993/28444
10.1002/mde.2750/abstract

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