The Competition of International Corporate Governance Systems - A German Perspective

摘要

Corporate governance theory deals with the optimal organization of management and control in companies with many stakeholders. Corporate governance systems are shaped by national laws, capital market requirements, and individual corporate decisions. For historical reasons, there are large differences between international corporate governance systems. But due to the globalization of product, labor, and capital markets, a competition of international governance systems has evolved. In the long run, this competition will lead to a convergence of all systems, to a continuation of different systems, or to the dominance of one system. An empirical study based on data from annual reports indicates that the US and the Japanese governance system each have different, but distinctive strengths. The German governance system is less well prepared for the systems' competition and might disappear from the market in the long run.