USV Annals of Economics and Public Administration (Dec 2020)
EVOLUTION OF CORPORATE GOVERNANCE IN AUTOMOTIVE INDUSTRY. STUDY CASE DAIMLER AG
Abstract
The purpose of the paper is to examine the evolution of the corporate governance in automotive industry. Corporate governance influences growth in financial markets and plays an important role in capital formation, corporate performance and maximization of shareholder value as well as protection of investors’ rights. Corporate governance provides a greater assurance that there is implemented an effective control system within an entity, thus ensuring that business is developed in the interest of shareholders and stakeholders. The study case is applied on The Daimler Group, which is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. I identified that Daimler, like others German companies follows the German Corporate Governance Code. It presents a set of principles and rules addressed to the supervision and management of German listed companies. It contains internationally and nationally approved standards in order to ensure a good and responsible corporate governance presented using recommendations and suggestions. The paper starts with the principles of corporate governance. It briefly describes the main aspects related to how corporate governance is applied in Germany, which sets forth the scope of the issues the paper discusses. By reviewing the general evidence, the paper explores the role of corporate governance for the sustainable development in the automotive sector.
