Strengthening Corporate Governance and Financial Reporting Through Regulatory Reform: A Comparative Analysis of Greek Laws 3016/2002 and 4706/2020

Savvina Paganou (), Ioannis Antoniadis (), Panagiota Xanthopoulou and Vasilios Kanavas
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Savvina Paganou: Department of Management Science and Technology, University of Western Macedonia, 50100 Kozani, Greece
Ioannis Antoniadis: Department of Management Science and Technology, University of Western Macedonia, 50100 Kozani, Greece
Panagiota Xanthopoulou: Department of Business Administration, University of West Attica, 250 Petrou Ralli and Thivon, 12243 Egaleo, Greece
Vasilios Kanavas: Department of International and European Economic Studies, University of Western Macedonia, 50100 Kοila Kozanis, Greece

JRFM, 2025, vol. 18, issue 8, 1-22

Abstract: This study explores how corporate governance reforms can enhance financial reporting quality and organizational transparency, focusing on Greece’s transition from Law 3016/2002 to Law 4706/2020. The legislative reform aimed to modernize governance structures, align national practices with international standards, and strengthen investor protection in a post-crisis economic environment. Moving beyond a simple legal comparison, the study examines how Law 3016/2002’s formal compliance model contrasts with Law 4706/2020’s more substantive accountability framework. We hypothesize that Law 4706/2020 introduces substantively stronger governance mechanisms than its predecessor, thereby improving transparency and investor protection, while compliance with the new law imposes materially greater administrative and financial burdens, especially on small- and mid-cap firms. Methodologically, the research employs a narrative literature review and a structured comparative legal analysis to assess the administrative and financial implications of the new law for publicly listed companies, focusing on board composition and diversity, internal controls, suitability policies, and disclosure requirements. Drawing on prior comparative evidence, we posit that Law 4706/2020 will foster governance and disclosure improvements, enhanced oversight, and clearer board roles. However, these measures also impose compliance burdens. Due to the heterogeneity of listed companies and the lack of firm-level data following Law 4706/2020’s implementation, the findings are neither fully generalizable nor quantifiable; future quantitative research using event studies or panel data is required to validate the hypotheses. We conclude that Greece’s new framework is a critical step toward sustainable corporate governance and more transparent financial reporting, offering regulators, practitioners, and scholars examining legal reform’s impact on governance effectiveness and financial reporting integrity.

Keywords: business and securities law; corporate governance; regulation; corporate social responsibility (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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