Cracking the Code

In a recent post I noted that, despite some improvements, good corporate governance isn’t something Germans have an easy time getting their heads round. The Financial Times Deutschland reports that there might be a good reason for this: in Germany, it doesn’t seem to matter much how well a corporation is governed.

As the FTD reports, a new study from the consultancy Ergo Kommunikation maintains that ‘investors do not reward German firms that abide by the Corporate Government Code…. Their share prices profit just as little from a high level of transparency or disclosure of managing directors’ compensation.’ [My translation.]

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