Book review Corporate Governance and Financial Performance: A Study of German and UK
نویسنده
چکیده
Since the early work of Jensen and Meckling, agency con ̄icts and their effects on the ®rm have been widely researched in ®nance. The present literature has examined the relationship between corporate governance and ®nancial performance for both existing stock companies and the plethora of recent IPO ®rms. In Corporate Governance and Financial Performance: A Study of German and UK Initial Public Oerings, Goergen studies the combined eects of international governance structures, initial public oerings, and ®nancialperformance measures. To determine whether governance aects performance, he contrasts the governance structure of the UK, characterized by a large diverse shareholder base and outside institutional investors, to that observed in Germany, marked by concentrated corporate ownership and a large in ̄uential, banking industry. By focusing on IPOs, Goergen tracks the progress of the ®rm from concentrated ownership to more diverse holdings and tests for subsequent changes in performance. The book consists of eight chapters. Chapter one provides a brief overview while chapter two outlines the governance literature and contains a survey of relevant empirical studies. Chapter three details the major dierences between the German and British ®nancial systems, including an examination of the possible eects of listing rules and inheritances taxes on ownership. Chapter four analyzes the evolution of ownership and control in German IPOs while chapter ®ve repeats the analysis for IPOs in the UK. Chapters six and seven compare the dierences in ownership and performance levels, respectively, between the two countriesÕ IPOs. Chapter eight summarizes the book. One of the strengths of the book lies in its descriptions of the UK and German ®nancial systems and instruments. For example, the kinds of securities markets and the types of individual securities along with their assigned voting statuses (such as the Vorzugsaktien, German non-voting preference stock) are discussed. In addition, managerial components, such as the German two-tiered Journal of Banking & Finance 24 (2000) 825±827 www.elsevier.com/locate/econbase
منابع مشابه
Examining the Relationship between Corporate Governance and the Corporate Performance Valuation
The aim of this study was to investigate the relationship between corporate governance characteristics and valuation of the firm's performance in Iran. After designing performance evaluation indexes, information of transactions made during the five-year study from 2011 to 2015 from the Stock Exchange were collected and the sample consists of 129 companies was selected by systematic elimination ...
متن کاملThe impact of corporate governance on the financial performance of listed companies in the Tehran Stock Exchange Chemical industry
The purpose of the present paper is that of researching the impact of corporate governance on financial performance, on a sample of 3 companies (Tamin Petroleum & Petrochemical Investment Co., Persian Gulf Petrochemical Industries Company and Parsian Oil and Gas Development Group), mainly from the chemical industry area, listed at Tehran Stock Exchange index, during the period 2011-2016. In thi...
متن کاملInvestigating the Compliance rate of Iranian Banks with Indicators of Corporate Governance Model
Corporate Governance debates raised seriously in scandals and financial crisis of recent decades in large companies and banks. The focus of this debate is not merely the corporate governance system, and its main function is to preserve the interests of stakeholders. At the macro level, economic efficiency, sustainable growth and financial stability are important effects of the system. Establish...
متن کاملBank’s Corporate Governance: Quantifying the Effects in Iranian Banking Networks
The most important tool for promoting the bank’s stability and health is the establishment of a standard corporate governance structure for managing the bank's business. Redesigning the relationships between bank management, shareholders and the rest of the bank’s stockholder, including the objectives, the risk and audit indices, and internal control of the bank, is recognized as the foundation...
متن کاملArtificial Intelligence Approach Analyzing Management Ability Based on Accounting and Corporate Governance Criteria
The aim of this research is the analysis of management ability using accounting and corporate governance criteria and also artificial intelligence. The primary independent variables in this study include regulatory variables (characteristics of corporate governance and audit committee) and accounting variables (performance and risk criteria). We took advantage of Demirjian index to measure mana...
متن کامل