Reform of Corporate Governance in the EU

Abstract:     
This article provides with a critical overview of the latest spate of the European Commission's proposals on reforming corporate governance in the EU. The authors argue that most of the proposed measures are simply reactions to recent fallouts and new legislation in the US. This article supplies with evidence beyond reasonable doubt that the EC's measures are in fundamental disequilibrium with the core and supporting institutions of corporate governance in the EU. The paper concludes with a view that rather than embarking on a complex exercise in harmonisation, Europe should build on the strength of its diversity and imitate the US where it is warranted.

Number of Pages in PDF File: 23

Keywords: Conflict of interest, corporate governance, board of directors, board structure, capital and ownership structure, executive compensation, independence

JEL Classification: G32, G34, G35, G38, H73, K22, L51

Accepted Paper Series