Corporate governance in the UK: Is the comply or explain approach working?

Sridhar Arcot, Valentina Bruno and Antoine Faure-Grimaud

International Review of Law and Economics, 2010, vol. 30, issue 2, 193-201

Abstract: We examine the effectiveness of the "Comply or Explain" approach to corporate governance in the UK. Using a unique database of 245 non-financial companies for the period of 1998-2004, we find an increasing trend of compliance with the Combined Code, but a frequent use of standard explanations in case of non-compliance. We show how the Combined Code has been interpreted and applied, and we discuss the existence of enforcement and monitoring problems. We make recommendations so that the approach could be strengthened with the greatest possible benefits.

Keywords: Corporate; governance; Comply; or; explain; Combined; Code (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (41)

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Working Paper: Corporate governance in the UK: is the comply-or-explain approach working? (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:30:y:2010:i:2:p:193-201

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