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In the second issue of the journal Risk Governance and Control: Financial Markets & Institutions in 2021 contributions are published that studied investigating the cross-market linkages and papers related to human capital as a critical component in the knowledge economy

The shareholder is the basis of the corporate idea and framework. Corporate governance protects the rights of shareholders. But not all shareholders have the same power, control or ability to exert their responsibilities and rights. The plethora of legal, regulatory and statutory frameworks and initiatives that are in place to establish a balance of power and control within and beyond the formal organizational pyramid, do not take into account the power and the complexity of relations, alliances and strategies among shareholders, shareholders and managers or shareholders and other stakeholders. Furthermore, main corporate governance theories more or less ignore minority shareholders. They are considered as free riders, useful idiots or just supplemental capital to achieve the goals of the more organized or more powerful shareholders or managers. Their position and bargaining depend on ownership concentration and legal protection. Ownership domination and control are the borderlines of the corporate governance problems especially in Continental Europe corporate governance system. In Continental Europe corporate governance system, the issues or problems that are reported for the Anglo-Saxon system are different: asymmetry of information vs asymmetry of power and control, moral hazard vs moral control, adverse selection vs family loyalty, differences in motives (alignment of interests vs control entrenchment). The paper will address these differences and will argue that best practices as an easy way to uphold pretenses and the “comply or explain” in these circumstances leads to non-compliance and no explanations. Finally, the paper will try to answer the question: Who wants to be a minority shareholder in a corporation that doesn’t respect the rights of the individual shareholder or it is dominated completely? The consequences of the fallout or failure of corporate governance in Continental Europe system countries will be shown using the Folli Follie case in Greece. As a conclusion the paper argues that a new framework of corporate governance is needed for countries where ownership concentration is high and legal protection of minority shareholders is poor.

Financial performance as a phenomenon in the European banking sector is an issue of a wide debate. The paper is seeking to detect the variables that have an impact on performance. Ratios and stratification variables are used in panel data regressions and the time period of the study is from 2004 to 2013. The results show that performance (ROAA) is dependent on four categories of ratios (Asset quality, Capital ratios/risk and solvency ratios, Operations ratios, Liquidity ratios). Corporate governance system and the geographic location (political and macroeconomic factors) of the bank seem to effect significantly the factors that have an impact on performance.

Many scholars have linked Corporate Governance (CG) and performance or CG, capital structure of banks or market structure. The decision to use the capital market or debt in order to obtain the necessary capital to finance firms’ operations is a critical factor for the formulation of corporate environment, because it contributes to the ownership concentration or diffusion and to corporate risk exposure level. The paper’s goal is to link all these three dimensions and to address the issue of whether performance and capital structure are the decisive factors of good corporate governance or vice versa and whether these dimensions are the drivers of banks’ financial health, strategic robustness and survival effectiveness. Furthermore, the paper is seeking to detect the differences (if any) among banking systems across Europe. To do that a double sample is selected (covering the period from 2004 to 2013). The first sample is comprised by European banks that merged. The second sample is comprised by European banks that survived the last merger & acquisition wave and the systemic shock of the double crises of 2002 and 2008. A combined ratio of performance (ROAA or ROEA) and debt to equity (DE or debt aggravation) is used to determine if there is a connection between capital structure and CG quality of banks. Panel data methodology is used. The econometric results show that there are no significant differences between the strata that are used for this research. There is no common factor or driver between the banking systems of Europe. This is an indication that the convergence theory of corporate governance systems is yet confirmed

The inactivity of banks may be the result of a number of events, such as merger & acquisition (M&A), liquidation, default-bankruptcy, etc. All these phenomena of inactivity contribute to the same result, the reform of the European banking sector and they may have the same causes. The paper will address the issue of inactivity and will try to detect its causes using econometric models. Six groups of indicators are examined: performance, size, ownership, corporate governance, capital adequacy or capital structure and loan growth. Three econometric methods (Probit, Logit, OLS) have been used to create a system that predicts inactivity. The results of the econometric models show that from the six groups of indicators, four have been found to be statistically important (performance, size, ownership, corporate governance). Two have a negative impact (ownership, corporate governance) on the probability of inactivity and two positive (performance, size). The paper’s value and innovation is that it has given a systemic approach to find indicators of inactivity and it has excluded two groups of indicators as non-statistically important (capital adequacy or capital structure and growth).

The European banking system is not isomorphic. The differences can be traced to the differences in their local economy development, legal origin, ownership status, corporate governance system, etc. The 2008 crisis has found the banking system of Europe in a transition status. The adoption of Euro, the establishment of the European Central Bank, the Basil III initiative, the adoption of legal isomorphism as policy in E.U., and finally the crises have been creating a unique environment for the banking system. The paper will address the issue of convergence of the banking system in Europe using a set of data from 27 countries of Europe. The analysis shows that the banks haven’t changed their financial and ownership structure. Some changes in strategy are not adequate to formulate the opinion that the banking sector in Europe is different than the one before it.

Financial performance as a phenomenon in the banking sector is an issue of a wide debate. The paper is seeking to detect the variables that have an impact on performance. There are two ways that the paper is going to achieve its goal. The first is to find the statistical important variables – ratios and the second the use of stratification (corporate governance system and geographical location as an indication of the political and economic factors) variables that may diverge the behavior and hence the performance of banks across Europe. The data used for the empirical analysis cover the period from 2004 to 2013, is focused on the twenty-seven (27) European Union countries. The data were collected from Bankscope and the initial sample was 8.115 individual banks. The final sample (commercial and cooperative banks) is comprised from 2.721 to 3.081 (dependent on the availability of data for every ratio) individual cases. The data collected were mainly financial ratios and some stratifying variables (corporate governance system, north-south) and panel data regressions using stratifying variables were used. The results show that performance (roaa) is dependent on the other four categories of ratios (Asset quality, Capital ratios/risk and solvency ratios, Operations ratios, Liquidity ratios), the interesting part is which of them are found to be statistical important. Financial performance of banks is based on factors that are specific to the sector. Bad debt handling, asset quality, operational costs, finding other sources of income, interbank liquidity are the most important factors that affect performance. Corporate governance system and the geographic location (political and macroeconomic factors) of the bank seem to effect significantly the factors that have an impact on performance. Banks with an Anglo-Saxon corporate governance system and banks that are in north Europe present greater variance of performance and hence they seem to be less entrenched – protected from markets.

The economic crisis has caused great changes in Greek economy, which are obvious in the banking field as well. Under the light of these unpleasant circumstances, the banking system was (and maybe still is) in danger of collapsing, a possibility that would probably affect countries abroad. In order to avoid this collapse, the sustainable banks were further supported and the non-sustainable were purged. This strategy aimed to stabilize the financial system through bank mergers and acquisitions. The strategy chosen to support and purge the banks was to proceed to mergers and acquisitions. These mergers and acquisitions are realized by the bank employees and they are highly related to them as they intend to stabilize the employees’ uncertain future. In October 2012 a field research was realized in order to record the employees’ point of view when it comes to both their profession as it is now and the case of bank mergers and acquisitions. After processing the findings of the research, we extract the following conclusion, among others: bank mergers and acquisitions have a negative impact on the majority of the employees that seem to be worried about the limitation of their professional perspectives, the emergence of bad working conditions and ultimately a possible discharge. The findings of the research confirm the growing anxiety and uncertainty among the bank employees. In case of merger or acquisition, the employees prefer that either of these procedures will be held with another Greek bank rather than with a foreign bank. There is a new “wave” of mergers and acquisitions coming in the banking field in Greece, confirming thus the general sense shared by the community and the outcomes of the economic crisis.

Corporate scandals during the last years have been proven to be stigmata on the corporate environment. Greece has been the focus point for its public financials, but it has its share of corporate scandals. The last thirty years a rapid reform has taken place in Greece. The legal, regulatory and capital market framework has changed in order to create a more comparable, compatible and isomorphic European business environment. Initiatives like the introduction of IFRS (2003-2004), corporate governance best practices (2002-2003), monitoring and auditing reforms, were some of the main tools of creating a new business environment in Greece. The paper argues, using specific data that these initiatives weren’t efficient enough, not by designers fault but because they weren’t appropriate for the fundamental characteristic of the social, political, legal and economic business environment of Greece. The paper, using the Proton bank case, shows these inefficiencies and highlights the fallacies of the policy makers in Greece and in Europe.

The International Community has designated the “Sustainable Development” as a central issue for the future of humanity. Unesco has named the decade 2005-2014 as the decade for the “Education for the Sustainable Development”. It has also engaged with the promotion of this project in order to “…integrate the values and practices of sustainable development to all the forms of education”. The Environmental Education Centres (EEC) were created during the past twenty years and they emerged from the growing interest in the issue of Environmental Education. Of course, the places where EEC are created are places of rich natural resources. The institution of EEC is highly connected to the environmental movement and it is internationally considered one of the most important factors of extra curriculum education. The Environmental Education Centres are encouraged to cooperate with the citizens in decision-making [2]. They are also encouraged to connect with the lifelong learning, the traditional learning, the local administration and the production units in the appropriate places and with the appropriate members, in order to become an effective structure of Education for Sustainable Development [6]. They can influence the local communities and create an environmental friendly situation. In 2013, at the place Meliti in the prefecture of Florina, an empirical research was carried out in order to explore the role of an Environmental Center in distant areas. The research shows that the operation of Environmental Education Centres influences the students and the local communities, especially when the centre operates in peripheral and disadvantaged areas. The EEC Melitis has a positive impact on the local community. It brings profit to local community, to local businesses (coffee shops, restaurants, ect.), it empowers the local pride, it makes children familiar with the natural and economic identity of their area and with their parents’ professions. Most importantly, the children are being environmentally informed and they can evolve into future protectors of sustainability.

This study contributes to the understanding of Corporate Governance term by using content analysis on twenty two definitions, dated from 1992 to 2010. We developed a six-dimensional framework and we calculated the frequency count using Internet search engine. Our results reveal that the more used definitions are the narrower (those of two or three dimensions), which implies that a further study, discussion or extension could act as a cornerstone to a cross-disciplinary dialogue for a broader definition of Corporate Governance.

PurposeThe purpose of the paper is to address the issues raised by the author of the paper “The effectiveness of corporate governance in Greece”.Design/methodology/approachThe issues are addressed point by point using additional data, references and analysis.FindingsThe paper pinpoints the sources of ineffectiveness of the Law 3016/2002 and states that there is a need for a new set of principles and laws that focus on the real issues of corporate governance in countries like Greece.Research limitations/implicationsTo fully comprehend the nature and dynamics of corporate governance issues a survey and analysis broader in scope, more holistic and without any prepossessions must be contacted.Practical implicationsThe study provides evidence to policy makers that the previous initiatives were ineffective and a new initiative is imperative in order to establish balance and create the conditions for capital market development.Originality/valueThe paper questions the argument that convergence may be accomplished by the enactment of laws alone and contributes to the growing body of literature that supports the notion that convergence may be accomplished only by the convergence of more fundamental characteristics of a country.

PurposeLegislators legislate, but how feasible and effective the implementation and enforcement of these laws are and how congruent with the countries characteristics, is under doubt. The paper seeks to argue that the Greek law on corporate governance (CG) had no effect on the fundamental elements of the corporate environment.Design/methodology/approachSeven hypotheses are tested using three different econometric methodologies (panel data, probit, and ordinal probit regression).FindingsThe paper pinpoints the legal disarrays and their impact on the firm and argues that there is a need for a new set of principles and laws that focus on the real issues of CG rather than the size, structure and leadership of the administrating bodies or the disclosure mechanisms.Research limitations/implicationsThe data used have been collected from the annual reports and not from questionnaires. Furthermore, there is no methodology to integrate all seven models to a structured or nested model.Practical implicationsThe study provides evidence that there is a need for a different set of provisions than the ones in the Anglo‐Saxon countries.Originality/valueThe paper uses a variety of methodologies and tests seven hypotheses. It takes a more holistic approach.

Duality of the role of President of the Board of Directors (BoD) and CEO has been regarded as a good practice of corporate governance. These two roles are the ones with the most power an authority within the corporation. The paper depicts the formulating factors of duality of roles in Greece. Literature has linked duality with performance, organizational stability, ownership concentration and balance of power and control within the firm. The paper, using a Probit regression analysis, examines whether these relationships are valid in Greece. Statistical – econometric analysis has shown that financial performance is not related with concentration of power and control. The same conclusion is can be drawn for ownership concentration. There is a trend of change but this trend hasn’t the same dynamic or driving factors as the ones that are reported by Kirkbride and Letza (2002) and Muth and Donaldson (1998). The hypothesis posed by Heracleous (2001) and Baliga, 6oyer and Rao (1996) are more likely to be true in the case of Greece. Overall, duality in Greece is affected by the historical development of the firm, its organizational scheme and even more by the balance of power and control within the firm.

Remuneration is considered to be closely connected with financial performance (positively), firm size (positively), the organizational structure (negatively) and corporate governance mechanisms (negatively). Furthermore, a connection of ownership structure and executives’ remuneration has been well established (theoretically and empirically) in the literature (agency theory). The paper examines if these relationships are valid in Greece. Greece hasn’t the characteristics of an Anglo-Saxon country. Overall the study has shown that remuneration levels in Greece are defined by a different set of factors than the ones that are prominent in an Aglo-Saxon country. Notably, fundamental financial measures of performance are more widely used. The age of firms and corporate governance quality have a catalytic impact on remuneration levels.

Purpose – The purpose of this paper is to propose a new approach to designing enterprise systems (ES). The goal is to create an information system that can be more efficient and able to contribute to a more stable and efficient corporate governance system.Design/methodology/approach – The new design approach is based on a retrospective analysis of the evolution of enterprise systems and the emerging business requirements.Findings – The new ES (Holistic Information System) does not diminish the problem of Corporate Governance (CG). The design and implementation of ES, according to modern CG principles and guidelines, can help all parties make rational decisions (through the power of logic and not through the logic of power), facilitate the market for corporate control, the flow of information and hence the efficiency of the CG system.Practical implications – The new framework can help information systems designers to understand and create a more holistic system. Also, it can help stakeholders understand th...

The chapter explores the relation among sovereign debt ratings, individual bank ratings and bank financial status. Credit Rating Agencies (CRA) are crucial to the function of financial markets. Two main blocks of models have been designed to investigate the above relations. The first block uses a constructed binary variable for Fitch’s ranking of European banks. The second block tries to identify the relation between financial performance and ratings. The data used for the empirical analysis, covering the period from 2004 to 2011, focus on the commercial banks of the 27 European Union countries. The statistical results show the close relation among sovereign debt, bank ratings and performance. The statistical importance of this relation is an indicator that external—exogenous factors (CRA) can play a significant role in formulating the economic environment, especially in times of crisis.

The goal of the paper is to detect the factors that affect financial performance of the European banks and the cross – sectional differences that may exist. The European banking sector is interesting due to its special characteristics and structure. The stability of the sector is based on structural elements (competition, capital structure, regulation, etc.) and its performance. The paper addresses the issue of the banking sector performance using two different econometric approaches. In both blocks of research ROA is used ROA as a performance index for Europe’s banks. The first approach has been realized by using four econometric methods [LAD (least absolute deviations), RREG (robust regression), ordinary least squares (OLS) and Quantile regressions] and the second approach is panel data regressions (Fixed and Random Effects) and tries to find if there are differences among different panels of European banks (PIGS-not PIGS, North-South, Entity type, Corporate governance system). The independent variables used in both groups of research can be categorized into six groups of indicators: ratings (country and bank), size, ownership, corporate governance, capital adequacy or capital structure and loan growth. The data used for the empirical analysis cover the period from 2004 to 2011, is focused on the twenty seven (27) European Union countries. The statistical results show that performance of banks in Europe is dependent on predictable factors and on factors like the credit ratings. The results also show that the European banking sector is not homogenized. There are significant differences in size, spatial distribution, performance, financial structure, etc. This results are important because as performance is not homogenized and the factors that determine performance have different weight in each subsystem, the European banking system is not isomorphic. Hence, each subsystem must have a different set of rules and strategies to enhance performance. The results are especially important for policy makers and explaining the events of the recent history.

PurposeThe goal of the paper is to detect any gaps in the legislator's and practitioner's approaches in information systems design and implementation and to evaluate their impact on an organizational and managerial level.Design/methodology/approachBasic information system requirements are presented for compliance with the Sarbanes‐Oxley Act. These requirements are compared with the provisions made by the vendors (like SAP, Microsoft, etc.) to address the issues raised by the legislators and the OECD's corporate governance principles and guidelines to provide a holistic approach to the problem of corporate governance system alignment.FindingsThe questions raised by the author are: did the legislators encapsulate the real essence of the OECD principles and did the ES designers manage to fully cover the letter and the spirit of the law or find a legalist‐normative solution to the problem of compliance (not alignment) with the laws and principles leading to a deviation from the original principles? It is shown that the latter is the case in a number of systems or modules designed to address the issue.Practical implicationsPractitioners, academics and developers‐vendors may alter their perspective of how an information system is placed within the context of the firm.Originality/valueA new approach in designing information systems is needed in order to comply with the new legal‐regulatory framework and market needs.

The crises of 2002 and 2008 have raised the issue of banking sector’s ability to absorb the effects of the crises. The inactivity of banks may be the result of a number of events, such as merger & acquisition (M&A), liquidation, default-bankruptcy, etc. Bankruptcy has been found to be a phenomenon that doesn’t happen often. On the contrary, M&As and liquidation are the main inactivity phenomena.The paper will address the issue of inactivity and will try to detect its causes using econometric models. Six groups of indicators are examined: performance, size, ownership, corporate governance, capital adequacy or capital structure and loan growth. Three econometric methods (Probit, Logit, OLS) have been used to create a system that predicts inactivity.The results of the econometric models show that from the six groups of indicators, four have been found to be statistically important (performance, size, ownership, corporate governance). Two have a negative impact (ownership, corporate governance) on the probability of inactivity and two positive (performance, size). This finding is consistent with the theory. The paper’s value and innovation is that it has given a systemic approach to find indicators of inactivity and it has excluded two groups of indicators as non-statistically important (capital adequacy or capital structure and growth).

Marketing strategies are changing fast in the global marketplace as the competition is increasingly growing since the beginning of this century. Multinational companies believe that customer is not just a buying entity but a powerful business partner. In this growing competitive spree multinational companies are exploring remote markets to position global brands. The paper examines the new concepts put forth by contemporary research studies on emerging marketing strategies and their effects on consumer behavior. Global shifts in consumer strategies in reference to quality of relations, competitive leadership and shopping behavior of consumers in the emerging markets are critically analyzed and future directions for research in changing business environment are proposed. The paper is not based on empirical data and does not use econometric or statistical methods to validate the new strategies and theories. This is a new field of research and the paper is the first step in formulating a valid hypothesis. New strategies and perspective can be used to establish a new ethical and behavioral equilibrium between corporations and customers. The paper uses the reported changes in marketing perspective and strategy to establish a theoretical base for the new marketing theories.

The last two decades a shift in marketing, corporate strategy, organizational and market dynamics has been recorded. A series of corporate scandals like ENRON and others has shown that corporations have a significant impact on a number of stakeholders and particularly customers. The notion that the customers can shift from one product or service provider to the other may not be as valid as some theories suggest. The markets are not perfect mechanisms and customers are not rational decision makers. Although marketing has introduced to the corporate culture the customer-centric approach the results are not as positive as they should be. The paper shows that marketing and corporate governance systems have many common elements and in fact they can be complementary in practice and theory. To establish the connection-correlation between them, the author is going to review the literature from both disciplines. As a next step, an analysis of impact of the customer as a party that has an interest in the firm is going to take place. Finally, two examples of this impact will depict the importance of a change in scope – goal, strategy and practices used by both disciplines in achieving the firm’s mission and goals. The author shows that both can be benefit from the integration of mechanisms, principles and practices used by the marketing and corporate governance. The paper is the first step to create a theoretical convergence framework for these disciplines that seem completely separate. Marketing and corporate governance specialists and theorists may design a more comprehensive and holistic approach to customer that is more customer friendly, more long term and establishes a more successful and value creation (for both the customer and the corporation) relationship.

Problem statement: The study contributes to the literature that argues that the convergence trend of corporate governance systems is either nominal or hasn’t the impact that the advocates of this theory hypothesize. Approach: The objective of the study was to test this hypothesis the key issue of remuneration had been chosen to illustrate that the differences of corporate governance systems still exist and they have a substantial impact on business environment. Disclosure or not of information regarding these issues preoccupies regulating, legislative authorities as well as capital market participants. The study, using a probit regression analysis, examined whether these differences are observable in Greece. Greece is a country with the typical characteristics of a Continental Europe corporate governance system. The results were compared with the reported characteristics of Anglo-Saxon countries. The study analyzed data over a period of 6 years (2001-2006). The 60 firms largest, in terms of capitalization and free float, were used. Results: The major factors that affect the remuneration disclosure were the adoption of mergers and acquisitions as the method to expand firm’s size, the investments risks that the firm is willing to take, stock market capitalization, board of directors size, capital to sales ratio, number of independent board of directors member dismissals and the quality of corporate governance. These differences were significantly different than the ones reported for Anglo-Saxon countries. Conclusion: The study had proven that remuneration disclosure levels in Greece are defined by a different set of factors than the ones in a typical Anglo-Saxon country. Policy and regulation makers should take into account these differences and not adopt isomorphic approaches to different problems and situations.

We review the basic information requirements for compliance with the Sarbanes-Oxley Act (SOX) and the OECD’s Principles of Corporate Governance (CG). The fundamental proposition of the paper is that information flow is a critical factor for the CG success or failure and information flow is dependent on the information system that the firm is using. The flaw is not the technology itself but in Enterprise Systems’ design. This analysis reveals that corporate governance principles cannot be implemented without the implementation of modern enterprise systems that can secure disclosure and transparency. Information dissemination and information control are essential to comply with SOX and OECD principles.

Capital structure, especially in the cases of the countries that belong in the Continental Europe system of Corporate Governance has a significant impact on the way that the firm is structured, organizationally, strategically and functionally. The decision to use the capital market or debt in order to obtain the necessary capital to finance firms’ operations is a critical factor for the formulation of corporate environment, because it contributes to the ownership concentration or diffusion and to corporate risk exposure level. Debt aggravation is measured by the ratio “Debt to Equity”. Panel data methodology is used. The hypothesis that are tested: a) is debt aggravation affected by the quality of corporate governance, the structure and composition of the Board of Directors, firm’s size, and other factors, b) are the factors that affect debt aggravation in Greece the same with the ones that are delineate in the literature for the Anglo-Saxon countries. Debt aggravation is statistically affected by performance, organizational structure and firm size. These findings are compatible with the literature. The innovative finding is that variables like Corporate Governance Index (CG), Mergers and Acquisitions (Merger), Major shareholder is the CEO (OWNCEO) and den dismissal or resignation of, executive, non executive (BDIS_P) and independent members of the Board of Directors are not statistical important. Corporate Governance does not seem to have any statistical important impact on capital structure and this conclusion is the opposite of the relevant studies of Shleifer and Vishny (1997) and Vilanova (2007). Greek firms seem to favor debt as a mean of finance, instead of capital-share issues.

During the last few years minority shareholders have suffered many shocks. Their rights and options were compromised. New legal and regulatory initiatives have failed to establish stability and trust on the mechanisms and contracts that are essential for organizational and market stability. The paper cites the basic rights of minority shareholders and analyzes the feasibility of their protection and enforcement. Minority shareholders are, in essence, without any choices or the choices that they have to rely on are the will and faculty of the dominant group (managers in the case of the Anglo-Saxon countries and major shareholders in Continental Europe countries).

It is the first paper that fully analyzes the disclosure status (legal and practical) through corporate web sites in Greece. The paper proposes that transparency and disclosure status should become a key performance indicator for the quality of management and for the quality of information released by the firm. The hypothesis is that disclosure of information, as a measure of corporate governance quality, should have a strong relation with firm performance. The paper seeks to establish a connection between the newly enforced IFRS and Corporate Governance in Greece by examining information disclosure of listed firms in their corporate sites on the Internet (WWW). Both initiatives (IFRS and CG reforms) have a common ground and that is the disclosure of information as they both advocate that a firm must release all material information to the shareholders and other stakeholders. This paper tries to find the impact of these initiatives in promoting transparency and accountability in Greek listed firms. The paper seeks to find the relationship between performance-corporate governance and information disclosure so that academics, practitioners, vendors and managers can formulate principles, strategies and practices to enhance the level of corporate governance and firms’ communication with the stakeholders. The basic driver for the paper is the OECD’s principles (2004) of Corporate Governance and the fact that all the major documents and research for the issues of CG are related, directly or indirectly, with the disclosure of information. The problem is determination of which information is necessary or mandatory to participate in management or to control the decision and actions of the controlling stakeholder and at what cost-channel of dissemination or format?Bhimani and Soonawalla (2005) argue that disclosure is a corporate responsibility. Information is the necessary basis for the decision making process and accountability. The basic anti-motives for disclosure are the costs of disclosure, the loss of competitive advantage (Welch and Rotbarg, 2006; Makadok, 2003), the security of information (Burns, 2001) and the rigidity of corporate functions. Internet has some advantages (low cost, directness of information, accessibility, rich format and the capability to connect directly with the Enterprise System) that make it the most appropriate mean of corporate information dissemination.The corporate web sites of 294 Greek listed firms have been reviewed in order to identify whether there is adequate information for a shareholder or a potential investor to take a rational decision. Twenty nine (29) information issues were identified and used. Four broad categories of information were identified: namely, general information for the firm (eleven issues), financial information (nine issues), Board of Directors (BoD) composition (six issues) and General Shareholders’ Meeting (GSM) information (3 issues). A cluster analysis is used to find commonalities of disclosure among the firms or commonalities of disclosure among the variables used. The sample was divided in groups according to: a) Capitalization (60 biggest with the rest) and b) Median of performance measurement (ROA, ROE, Tobin’s Q). A correlation matrix has been calculated.To further examine the relation between financial performance and disclosure the authors have divided the sample using cluster analysis and independent sample t-test was used to test the hypothesis of the same mean between the clusters. Two sets of controls have taken place. The first set is used to examine the relation of disclosure with financial performance. The second one examines the opposite relation of financial performance with disclosure status.The results of the data analysis show that Greek firms are disclosing only the mandatory (by law) information. They do not release, voluntary, information, especially, information about the decision making process, the evaluation of the management team. Information dissemination (disclosure) transparency is not related with financial performance. The paper is a first step in identifying the drivers of enhancing disclosure regimes. Further research should be done for the relationship between disclosure and ownership, disclosure and market volatility, etc.

Legal initiatives have a significant impact on the inner and outer corporate environment. Recent scandals and developments have triggered a wave of regulative and voluntary initiatives to improve corporate governance (CG) quality. The legislators legislate, but how feasible, effective is the implementation of these laws and how congruent with the countries characteristics is under doubt. The paper argues that the Greek Law on Corporate Governance had no effect on the fundamental elements of the corporate environment. Seven hypotheses are test using three different econometric methodologies (Panel data, Probit and Ordinal Probit Regression) are used. The legalistic approach drives the corporation to a mechanistic compliance and hence looses the freedom to make innovative decisions (Donaldson, 2003) or create costs that do not have a positive impact on financial performance, organizational stability, etc. The paper pinpoints the legal disarrays and their impact on the firm and argues that there is a need for a new set of principles and laws that focus on the real issues of corporate governance rather than the size, structure and leadership of the administrating bodies or the disclosure mechanisms.

In this paper we examine the pattern of stock returns and volatility at an individual share level in the Greek stock market, which is subject to various international and domestic influences. The introduction of foreign and domestic indices to analyze basic stock trends is common in the literature, however, in small markets, such as the Greek market, we should be particularly cautious, because there are some especially influential shares, which possibly lead the market. We have utilized two such shares, namely the shares of the Greek National Bank and of the Hellenic Telecommunications Organization. In this framework, the role of Individual Stock Futures has been examined. The empirical findings were based upon Granger causality tests and the GARCH models.

The corporation environment is a battlefield. Key players are competing to gain power and control. The paper aims to analyze the power and control function within the firm. To do that three basic clusters of people (CEO/Management, Board of Directors, General Shareholders’ Meeting) are recognized and analyzed. The analysis takes place using five categories (goal/scope/interest, Strategy, Allies, Foes, Tools, Instruments, Weapons and Preferable Environment). The authors take into account the legal and regulatory framework (corporate law, corporate governance law and codes), the codes of ethics, good practices, principles of corporate governance (OECD, 2004) the market’s needs because they are basic drivers and regulators of how the delegation of power and control takes place and how balance is established. The paper shows that power and control is concentrated, legally, at the top of the organizational pyramid, but in reality the only cluster that has the ability (well formulated strategy, tools and allies) to enforce its will on others is the CEO/Management Cluster.

Duality of the role of President of the Board of Directors (BoD) and CEO has been regarded as a good practice of corporate governance. These two roles are the ones with the most power an authority within the corporation. The paper depicts the formulating factors of duality of roles in Greece. Literature has linked duality with performance, organizational stability, ownership concentration and balance of power and control within the firm. The paper, using a Probit regression analysis, examines whether these relationships are valid in Greece. Statistical – econometric analysis has shown that financial performance is not related with concentration of power and control. The same conclusion is can be drawn for ownership concentration. There is a trend of change but this trend hasn’t the same dynamic or driving factors as the ones that are reported by Kirkbride and Letza (2002) and Muth and Donaldson (1998). The hypothesis posed by Heracleous (2001) and Baliga, Μoyer and Rao (1996) are more likely to be true in the case of Greece. Overall, duality in Greece is affected by the historical development of the firm, its organizational scheme and even more by the balance of power and control within the firm.

PurposeThis paper seeks to establish a benchmark for the evaluation of the quality of corporate governance (CG) and to detect the factors that affect it in Greece.Design/methodology/approachAn index of corporate governance quality is constructed using binary variables. Data from annual reports are used to identify the mechanisms and practices of corporate governance. An ordinal probit model is used to identify the drivers of corporate governance.FindingsCG quality in Greece is quite low, in terms of international best practices. The main drivers of CG quality are firm size, leadership or power concentration and board characteristics. Greek firms' CG quality depends mainly on the balance of power within the firm, rather than performance or market for corporate control.Research limitations/implicationsData for the constructed index have been collected from the annual reports, and not from questionnaires.Practical implicationsThe study provides evidence that there is a different set of factors that affect CG quality from those in Anglo‐Saxon countries. The paper addresses the issue of the relevance of proposed CG mechanisms to real CG problems. By identifying the factors that have an impact on CG quality, policy makers can focus on them to create a legal‐regulatory framework that can improve the level of CG.Originality/valueThe paper not only measures CG, but pinpoints its formulating factors as well. Furthermore, the need for new benchmarking tools to address the fundamental elements of the corporate environment (i.e. ownership concentration, the lack of a market for corporate control, etc.) in continental Europe is highlighted.

Purpose – M&A differences are based on three levels: preconditions, payment methods and motives-drivers. The paper’s purpose is to determine the motives, preconditions and methods of M&As in Greece and to compare them with the ones that are recorded in the studies for the Anglo-Saxon countries. Design/methodology/approach – The data used are collected from annual reports. A model was constructed using Probit regression methodology. The paper focused on the decision to adopt the M&A strategy (of the M&A strategy adoption). Findings – The paper argues that the M&A activity in Greece wasn’t the result of a convergence trend (a shift in the fundamental elements of the Greek business environment), but rather an extraordinary event. The preconditions and motives that are reported for the Anglo-Saxon countries are either none existing or weak in comparison in the case of Greece. In Anglo-Saxon countries M&As changed the business and organizational model, whereas in Greece the fundamental characteristics remained the same. Research limitations/implications – Data have been collected from the annual reports of the 60 biggest in capitalization firms in the Greek Stock Exchange. Practical implications – The fact that there are different businesses and organizational models across Europe is a factor that must be taken into account in designing and implementing policies and regulations that promote the idea of a common market with complete freedom of movement and the same rules and regulations. Originality/value – This is the first paper that uses Probit methodology to study M&As in Greece and complements a growing body of literature studying the M&A phenomenon in Europe.

Corporate Governance (CG) and Enterprise Systems (ESs) have attracted a great deal of attention from academics and practitioners. Financial scandals (Enron, WorldCom, etc.) and information system breakdowns are common nowadays. This paper argues that these failures are closely correlated. It shows the correlation and makes some suggestions about how the information systems should be designed and implemented and how corporate governance can benefit from the new design approach. Regulation, voluntary codes and good practices as a motive for adopting new systems (organisational and informational) play a crucial role in selecting the course of action and strategy. The synergies between CG and ESs can lead to a more stable corporate environment and improved organisational performance.