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The Determinants of the German Corporate Governance Rating

Drobetz, Wolfgang and Gugler, Klaus and Hirschvogl, Simone. (2004) The Determinants of the German Corporate Governance Rating. WWZ Discussion Papers, 2004 (06).

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Abstract

This paper analyzes the determinants of the German corporate governance rating NEWLINE recently developed by Drobetz, Schillhofer, and Zimmermann (2004). We find a NEWLINE non- linear relationship between ownership concentration and the quality of firmlevel NEWLINE corporate governance as measured by the rating. Firms with larger boards of NEWLINE directors have lower governance ratings, but firms that apply US-GAAP or IAS NEWLINE rules and/or use an option-based remuneration plan have higher corporate governance NEWLINE ratings. Our results question the comply-or-explain principle embedded in NEWLINE recent corporate governance codes and call for a more rules-based approach in NEWLINE improving corporate governance in Europe.
Faculties and Departments:06 Faculty of Business and Economics
06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Drobetz, Wolfgang
Item Type:Working Paper
Publisher:WWZ, University of Basel
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2004/06
Last Modified:09 Mar 2018 10:53
Deposited On:08 Mar 2018 09:07

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