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Accountability in Corporate Governance - A theoretical framework and an analysis of the German two-tier board system

Törnquist, Charlotte LU and Prinz Zu Solms-Hohensolms, Sebastian LU (2013) FEKN90 20131
Department of Business Administration
Abstract
This thesis arises from recent evidence of corporate non-compliance in the German two-tier system. This evidence has raised the question of accountability; what it is and to whom one should be accountable. Therefore this thesis starts out by examining the German system, how it evolved over time and how it functions. It is a system with a long and fascinating history and although it has changed over the decades its core is still similar to the corporate law of the 19th century. To be able to make a relevant analysis of accountability, the authors created a framework based on theories such as stakeholder theory, stakeholder value theory and also theories such as agency theory. The framework starts out with definitions of accountability, it... (More)
This thesis arises from recent evidence of corporate non-compliance in the German two-tier system. This evidence has raised the question of accountability; what it is and to whom one should be accountable. Therefore this thesis starts out by examining the German system, how it evolved over time and how it functions. It is a system with a long and fascinating history and although it has changed over the decades its core is still similar to the corporate law of the 19th century. To be able to make a relevant analysis of accountability, the authors created a framework based on theories such as stakeholder theory, stakeholder value theory and also theories such as agency theory. The framework starts out with definitions of accountability, it then clarifies the implications of accountability and finally the process of accountability is illuminated. That is, how the relationships to the Boards are formed and to whom the constituencies are accountable. The authors find that it is a rather complex situation within the two-tier system and that accountability is something that has to go both ways. That the Boards are accountable to the stakeholders but that they in turn are accountable to the company. To further describe accountability in practice, the authors have looked at Siemens and ThyssenKrupp, two German company groups that have seen rough times and with issues of lack of accountability (Less)
Please use this url to cite or link to this publication:
author
Törnquist, Charlotte LU and Prinz Zu Solms-Hohensolms, Sebastian LU
supervisor
organization
course
FEKN90 20131
year
type
H1 - Master's Degree (One Year)
subject
keywords
accountability, German two-tier system, stakeholders, stakeholder value
language
English
id
3973055
date added to LUP
2013-08-22 10:48:09
date last changed
2013-08-22 10:48:09
@misc{3973055,
  abstract     = {This thesis arises from recent evidence of corporate non-compliance in the German two-tier system. This evidence has raised the question of accountability; what it is and to whom one should be accountable. Therefore this thesis starts out by examining the German system, how it evolved over time and how it functions. It is a system with a long and fascinating history and although it has changed over the decades its core is still similar to the corporate law of the 19th century. To be able to make a relevant analysis of accountability, the authors created a framework based on theories such as stakeholder theory, stakeholder value theory and also theories such as agency theory. The framework starts out with definitions of accountability, it then clarifies the implications of accountability and finally the process of accountability is illuminated. That is, how the relationships to the Boards are formed and to whom the constituencies are accountable. The authors find that it is a rather complex situation within the two-tier system and that accountability is something that has to go both ways. That the Boards are accountable to the stakeholders but that they in turn are accountable to the company. To further describe accountability in practice, the authors have looked at Siemens and ThyssenKrupp, two German company groups that have seen rough times and with issues of lack of accountability},
  author       = {Törnquist, Charlotte and Prinz Zu Solms-Hohensolms, Sebastian},
  keyword      = {accountability,German two-tier system,stakeholders,stakeholder value},
  language     = {eng},
  note         = {Student Paper},
  title        = {Accountability in Corporate Governance - A theoretical framework and an analysis of the German two-tier board system},
  year         = {2013},
}