In recent years, scholars have frequently criticised Britain's market-based system of corporate governance. In particular, theory has focused on whether the German system should be viewed as an alternative to the UK model. The purpose of this paper is to
Inhaltsverzeichnis (Table of Contents)
- Introduction
- General Observations of Cultural Differences
- Legal Forms of Firms and Distribution of Ownership
- The Structure of Shareholdings in Germany
- Legal Structure of a Join-Stock Company
- Merger and Takeover Activity
- The Role of the Banks
- Adaptability to Change
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide an overview of the German corporate governance system, contrasting it with the UK model. It explores the characteristics, advantages, and drawbacks of the German system, focusing on its unique features such as the two-board structure, employee co-determination, and the role of banks in corporate governance.- Cultural Differences and their impact on Corporate Governance
- Legal Forms of Firms and Ownership Distribution
- Structure of Shareholdings and the Role of Institutional Investors
- The Two-Board Structure and Employee Co-determination
- The Role of Banks in Financing and Corporate Governance
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter outlines the paper's purpose, which is to analyze the German corporate governance system and compare it to the UK model. It specifically focuses on the two-board structure, employee co-determination, the market of corporate control, and the role of banks.
- General Observations of Cultural Differences: This section highlights key cultural differences between Germany and the UK, emphasizing the strong link between industry and education in Germany, the emphasis on formal qualifications, and the societal embedding of enterprises. It also discusses the concept of "Property imposes duties" as enshrined in the German constitution, leading to a consensus on the need for companies to consider various stakeholder interests.
- Legal Forms of Firms and Distribution of Ownership: This chapter explores the different legal forms of firms in Germany, highlighting the predominance of private limited companies (GmbH) and joint-stock companies (AG). It contrasts the German system with the UK, noting the smaller proportion of listed firms in Germany and the relatively low volume of share trading. The chapter also discusses the implications of these differences for the German capital market and its financing structure.
- The Structure of Shareholdings in Germany: This chapter focuses on the shareholder structure of German firms, emphasizing the lower proportion of institutional investor ownership compared to the UK. It identifies three main factors contributing to this difference: the state pension level, the unfunded liability of company pensions, and the limited demand for private pension schemes and insurance.
Schlüsselwörter (Keywords)
This paper explores the German corporate governance system, focusing on key concepts such as the two-board structure, employee co-determination, the role of banks, cultural differences, and stakeholder interests. It also examines the legal forms of firms, ownership distribution, and the structure of shareholdings in Germany, contrasting these with the UK model.
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- Dr. Klaus Schöfer (Author), 1998, Corporate Governance: A Contrast of the German system with that prevailing in the UK, Munich, GRIN Verlag, https://www.grin.com/document/185874
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