The Value of the “Comply or Explain” Principle

DOI

10.2991/assehr.k.210916.005How to use a DOI?

Keywords

Internal governance, The “comply or explain” principle, Optimal performance

Abstract

The “comply or explain” approach is basically characterized by voluntary compliance with the recommended code provisions and give explanation in particular circumstances if good governance can be achieved by other means. Although there are many practical obstacles which prevent the existing “comply or explain” approach to function in an optimal fashion, its existence is still of significance value to improve the quality of corporate governance alongside with other statutory rules. Instead of focusing on the compliance rate, more attention should be paid to improving the quality of explanations, and shareholders are encouraged to engage more in monitoring the appropriateness of the deviation of the provisions.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wei Lu
PY  - 2021
DA  - 2021/09/16
TI  - The Value of the “Comply or Explain” Principle
BT  - Proceedings of the 2021 International Conference on Social Science:Public Administration, Law and International Relations (SSPALIR 2021)
PB  - Atlantis Press
SP  - 26
EP  - 36
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210916.005
DO  - 10.2991/assehr.k.210916.005
ID  - Lu2021
ER  -