The link between supervisory board reporting and firm performance in Germany and Austria
Research output: Journal contributions › Journal articles › Research › peer-review
Standard
In: European Journal of Law and Economics, Vol. 29, No. 3, 06.2010, p. 295-331.
Research output: Journal contributions › Journal articles › Research › peer-review
Harvard
APA
Vancouver
Bibtex
}
RIS
TY - JOUR
T1 - The link between supervisory board reporting and firm performance in Germany and Austria
AU - Velte, Patrick
PY - 2010/6
Y1 - 2010/6
N2 - The present study examines the supervisory board reporting of listed corporations in the German and Austrian Prime Standard, especially with regard to the “assisting” role of the external auditor. The aim of this paper is to compare the similar two-tier systems in both European countries regarding their stock corporate law and their corporate governance codes. First, the descriptive analysis reveals specific reporting gaps in Germany and Austria. Thus, suggesting that the current German and Austrian accounting law reforms are crucial in order to increase the reporting quality in the future. The analysis of correlation in particular shows statistically significant positive correlations between the reporting on the independence of the supervisory board and the firm performance index (Price-Earnings-Ratio, Tobin’s Q) in both countries. Taken together, the determined correlations of all variables in question are to be classified as rather insignificant and their effects are quite inhomogeneous. Although several similarities can be found in the corporate governance systems of Germany and Austria, deviations exist with regard to the significance of the corporate governance reporting and firm performance.
AB - The present study examines the supervisory board reporting of listed corporations in the German and Austrian Prime Standard, especially with regard to the “assisting” role of the external auditor. The aim of this paper is to compare the similar two-tier systems in both European countries regarding their stock corporate law and their corporate governance codes. First, the descriptive analysis reveals specific reporting gaps in Germany and Austria. Thus, suggesting that the current German and Austrian accounting law reforms are crucial in order to increase the reporting quality in the future. The analysis of correlation in particular shows statistically significant positive correlations between the reporting on the independence of the supervisory board and the firm performance index (Price-Earnings-Ratio, Tobin’s Q) in both countries. Taken together, the determined correlations of all variables in question are to be classified as rather insignificant and their effects are quite inhomogeneous. Although several similarities can be found in the corporate governance systems of Germany and Austria, deviations exist with regard to the significance of the corporate governance reporting and firm performance.
KW - Management studies
KW - Corporate governance research
KW - Supervisory board
KW - Audit committees
KW - Board independence
KW - Financial expertise
KW - External audit
U2 - 10.1007/s10657-009-9122-x
DO - 10.1007/s10657-009-9122-x
M3 - Journal articles
VL - 29
SP - 295
EP - 331
JO - European Journal of Law and Economics
JF - European Journal of Law and Economics
SN - 0929-1261
IS - 3
ER -